Spotify forecasts profit below estimates on higher taxes, shares sink

Spotify forecast third-quarter profit below Street estimates on Tuesday as higher taxes related to employee salaries outweigh upbeat demand for its premium music-streaming plans.

The company’s shares, which have risen around 57% so far this year, fell nearly 9% in early trading.

Investors are closely monitoring the Swedish company’s profitability after price hikes, cost cuts and subscriber gains in recent years helped it achieve its first annual profit in 2024.

Spotify said it expects operating income of €485 million ($561.05 million) in the current…