Spotify forecasts fourth-quarter profit above estimates on AI bets

Spotify expects fourth-quarter operating income of €820 million, slightly above the €813.4 million analyst consensus, Business Recorder reported on Thursday. The Swedish streaming company is relying on AI features to attract users during the holiday period, while its forecast for monthly active users came in just below estimates.

Its third-quarter operating income was €672 million, broadly matching forecasts, while revenue of €4.97 billion and earnings per share of €2.48 both missed analyst expectations. Spotify also projected about 10 million additional premium subscribers, taking the total to 316 million, ahead of estimates.

The company’s AI tools include personalised mixes and playlists generated from user prompts. Spotify has also arranged licensing agreements with Believe, Universal Music Group, Merlin and Kobalt for a planned paid service for AI-made fan covers and remixes.