MUSIC STREAMING PLATFORM Spotify has made a profit for the first time. 

The company reported its first annual profit today, with the number of active users growing more than expected in the fourth quarter of 2024 to reach 675 million.

The company reported a net profit of €1.1 billion for last year, compared to a net loss of €532 million in 2023.

“I am very excited about 2025 and feel really good about where we are as both a product and as a business,” Spotify CEO Daniel Ek said in a statement.

The company also had its first ever annual operating profit, reaching €1.4 billion. Its operating profit climbed to a record €477 million in the fourth quarter of last year. 

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The number of active users grew 12% year-on-year in the fourth quarter to reach 675 million, beating its estimate by 10 million.

The number of paying subscribers grew 11%, reaching 263 million. Four-quarter revenue in 2024 grew 16% to €4.2 billion.

The music streaming service also said it paid out a record $10 billion (about €9.7 billion) in royalties to the music industry last year.

“Looking into 2025, we view the business as well positioned to deliver another year of continued growth and improving margins as we reinvest to support our long-term potential,” Spotify said in its earnings report.

In the first quarter of 2025, Spotify said it expects to reach 678 million monthly active users and 265 million paying subscribers.

Contains reporting from © AFP 2025