Spotify Posts Record Profits and Growth

Spotify reported record profits with an operating income of €477 million in Q1 2025, contributing to a full-year operating profit of €1.4 billion in 2024.Growth was driven by improved monetisation, cost-cutting, and an expanding premium user base. Globally, Spotify added 5 million new premium users, reaching 268 million.

Notably, in Ireland, there is a balanced 50/50 split between premium and free users, with both segments seeing YOY growth from 2023 to 2024. According to data from Spotify, Free usage gained 18% YOY, while Premium subscriptions grew by 6%.

This data highlights the significant expansion of Spotify’s reach in Ireland, now with over 2.4 million active users as of May 2025. For Irish brands, this growth presents a unique opportunity to connect with both free and premium audiences. As the premium user base grows, brands can target a more engaged, ad-free audience, perfect for podcast sponsorships, branded content, and creative advertising strategies.

For Irish marketers, the changing levels of growth between premium and free users represents an interesting opportunity. Increasing numbers of free users will likely drive demand up for traditional ad spots on the platform. With premium users also now becoming available to target via creative campaigns that go beyond traditional ads—such as dynamic audio and podcast integrations—will be increasingly important.

The evolution of Spotify’s platform signals a shift towards more flexible, data-driven advertising. Irish brands should be ready to adapt, leveraging Spotify’s new tools to engage audiences in fresh, creative ways.

Sources: Techedt