Spotify Shares Surge on Record Profit, Subscriber Boost

The Spotify app.Photographer: Tiffany Hagler-Geard/Bloomberg
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Spotify Technology SA shares surged to their highest in more than three years on Tuesday after the Swedish audio-streaming giant reported a record profit in the second quarter and strong growth in paying subscribers.

Operating income in the second quarter was €266 million ($288 million) after a loss of €247 million a year earlier, with gross margins of 29.2%. Earnings were €1.33 a share, beating analysts’ estimates.