Wednesday 26 June 2019

Spotify on song as it boosts reach with podcast purchases

 

Spotify has agreed to buy the podcasting firms Gimlet Media and Anchor. Photo: PA
Spotify has agreed to buy the podcasting firms Gimlet Media and Anchor. Photo: PA

Lucas Shaw

Spotify Technology climbed in trading after two acquisitions in podcasting and continued subscriber growth reassured investors that the streaming service can fend off rivals like Apple Music.

Spotify has agreed to buy the podcasting firms Gimlet Media and Anchor, with CEO Daniel Ek saying that "opportunity starts with the next phase of growth in audio - podcasting".

Monthly average users rose to 207 million, the company said yesterday, beating analysts' expectation of 203 million.

The company, whose growth had come with persistent bottom-line losses, crowed about several financial metrics. It said operating income, net income and free cash flow were all positive for the first time in its history.

It also solidified its lead as the most popular streaming music service last year, saying performance outpaced its expectations despite new competition from Amazon and YouTube, as well as many local players. Investors have been upbeat about Spotify's prospects, sending the stock up 23pc this year.

Bloomberg

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