Spotify profits up, but lower marketing hits user growth


Small figurines are seen in front of displayed Spotify logo in this illustration taken February 11, 2022. REUTERS/Dado Ruvic/Ilustration

STOCKHOLM: Spotify's quarterly gross profit topped 1 billion euros ($1.1 billion) for the first time after it reined in marketing spending, although that meant the music streaming giant missed its forecast for monthly active users.

The Swedish company has been growing its user base for years by offering promotions and investing in podcasts and audiobooks. But since last year it started to cut costs, including through layoffs and its marketing budget, to boost margins and profits.

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