Spotify presented its financial results for the fourth quarter of 2019 and provided some important data on the popularity of the services offered. We learned from the report that the number of users of the music streaming platform has increased again, including subscribers. Spotify also draws attention to the huge popularity of podcasts.
The company's financial report states that in the fourth quarter of 2019, its revenues amounted to EUR 1.855 billion, which was 24 percent higher year-on-year. EUR 1.638 billion from premium services (24 percent more year on year) and EUR 217 million from the free version of the website with advertisements (an increase of 23 percent). The company said the average user revenue was 4.65 euros. According to Spotify, the number of active users per month (MAU) is 271 million, up 31 percent year-on-year.
Accelerated growth in the number of customers in Europe, North America and South America, but the largest number of customers in other markets. Spotify believes that this was related to its promotional activities, including its annual Wrapped campaign, enabling users to see a summary of their entire year of activity on the audio streaming platform. Of course, the company's authorities care not only about the increase in users, but mainly on the arrival of subscribers. Of these, there were 124 million in the last quarter, 29 percent more year on year.
Spotify reports that it is the best quarterly result in history, as 10 million subscribers were added. This is due to the promotion, but podcasts have an impact on the increase in subscription popularity, whose playback time increased by as much as 200 percent year-on-year. Anyway, Spotify has a strong bet on them and for this purpose it bought the network The Ringer, specializing in sports podcasts. We can expect that the company will be adding this type of content very quickly because cooperation with many popular creators was announced, which were to attract people to the platform.