Spotify reaches 306 million paid subscribers as third-quarter margins rise

Spotify reported 306 million premium subscribers at the end of the third quarter, up 9% from a year earlier, and operating income of 672 million euros. Shares rose 9.2% to $573.21 in early trading Thursday, International Business Times AU reported. The streaming company added 6 million paying users during the quarter. Revenue rose 16% to about 5 billion euros, while gross margin reached 33%, about 1.4 percentage points higher than a year earlier. Spotify forecast fourth-quarter operating income of 820 million euros and 316 million subscribers by year-end. Third-quarter earnings per share nevertheless fell below some analysts' estimates.