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Spotify forecasts weak profit as user growth slows in North America, Europe
['Jaspreet Singh', 'Tue', 'August', 'At Am Gmt', 'Min Read']
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By Jaspreet SinghAug 4 (Reuters) - Spotify said higher marketing and development costs would hurt its profit in the current quarter as the Swedish music-streaming giant bets heavily on features powered by AI to attract users.
Price hikes have become central in recent years to Spotify's push to prove it can convert its huge user base into meaningful profit.
EXPENSES TO WEIGH ON PROFITSpotify expects operating income of €670 million ($770.97 million) in the third quarter, below estimates of €677.8 million.
In the second quarter, it added 16 million monthly active users.
Spotify said 25% of its users overall are already using its AI features, including its conversational assistant for audio discovery, "Talk to Spotify", and AI app, "Studio by Spotify Labs".