Spotify forecasts Q1 profit above estimates on steady user growth

Spotify forecast first-quarter profit above market estimates on Tuesday as the Swedish audio-streaming giant benefits from steady user growth, price hikes and a cost-cutting drive.

Shares of the company rose more than 9 per cent in premarket trading.

Spotify expects operating income of 548 million euros ($566.19 million) in the current quarter, above analysts’ average estimate of 450.6 million euros, according to data compiled by LSEG.