Spotify Jumps After Ad Revenue Growth Defies Industry Slowdown
- Music-streaming company beat a range of analyst estimates
- Shares post biggest gain in more than a year and a half
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Spotify Technology SA avoided an advertising slowdown in the second quarter, escaping the fate of other tech stocks, like Snap Inc., which took a hit from lower ad spending.
The music-streaming service said Wednesday that advertising sales generated 360 million euros ($365 million) last quarter, an increase of 31% from a year ago. Advertising accounted for 13% of the company’s total revenue in the quarter.