In a move aimed at boosting its falling stock price, Spotify this morning announced it would buy back up to $1.0 billion worth of stock — up to 10 million in ordinary shares. The repurchase program was authorized by the company’s general meeting of shareholders and approved by the Board of Directors. The program will expire on April 21, 2021, Spotify says.
The decision to buy back stock comes at a time when Spotify is reporting modest growth for its streaming business, but is struggling in public markets as investors have become skeptical as to whether or not the company will be able to sustain that growth long-term and become profitable.
It’s also been impacted by the larger declines impacting tech stocks, which in October saw their worst month since the 2008 recession.
In the last quarter, Spotify reported revenues up 31 percent year over year, and an operating loss of €6 million — a 92 percent improvement on a year ago. Its monthly active users were also at 191 million, which was up 28 percent over last year.