Spotify predicts rising revenues, but slower future sales

Spotify expects to post a narrower annual loss, but warns that its sales growth is likely to slow this year.

Spotify predicts rising revenues, but slower future sales
Spotify also aims to boost subscriber numbers this year. Photo: Fanni Olin Dahl/TT

Only days ahead of its New York Stock Exchange debut, the Swedish music giant said revenues were projected to rise between 20 and 30 percent in 2018 to between 4.9 and 5.3 billion euros ($6.1 billion to $6.6 billion) compared with growth of 38 percent last year and 53 percent in 2016.

Spotify, which has not posted a profit since its creation in 2008, said unfavourable exchange rates were the main reason for the growth slowdown.

Its operating loss was expected to come in between 230 and 330 million euros, down from 378 million in 2017.

The company also said it aimed to boost its subscriber numbers by 30 to 36 percent this year.

Spotify will go public on April 3rd on the New York Stock Exchange.

In an unusual move, the company is not issuing new shares as in a traditional initial public offering.

It instead will directly list its shares on the New York Stock Exchange, allowing its founders to maintain control and avoiding the cost of Wall Street underwriters.

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