Rallentando

26 March 2018 By Jennifer Saba Follow @jennifersaba

The streaming-music service expects revenue to increase at most 30 pct this year, a slowdown. And although it’s adding subscribers, Spotify is collecting less money from each of them. That makes future price hikes riskier. The trends are worrisome ahead of its public listing.

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Spotify Technology on March 26 released full-year and first-quarter estimates. Revenue for 2018 is expected to be 4.9 billion to 5.3 billion euros, up 20 percent to 30 percent from the prior year. In 2017, revenue grew 39 percent year-over-year.

Total premium subscribers for 2018 are expected to be in the range of 92 million to 96 million, up 30 percent to 36 percent year-over-year.

Operating losses are forecast to be in the range of 230 million to 330 million euros for 2018. Last year, Spotify reported an operating loss of 378 million euros.

Spotify plans to list its shares on the New York Stock Exchange on April 3.

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