Spotify Technology SA’s move into podcasting is starting to pay off.
The company reported a 75% jump in advertising sales for the third quarter Thursday and projected it would eclipse €1 billion (¥131.8 billion) in advertising sales for the first time on an annual basis. The company reported overall sales of €2.5 billion and operating income of €75 million, both surpassing analysts’ forecasts.
Investors have been waiting for Spotify’s multibillion dollar investment in podcasting and advertising technology to turn its money-losing music service into a profitable audio service. After shares of Spotify spiked for most of 2020, they’ve sagged this year as investors soured on the podcasting gambit.