Spotify forecasts third-quarter profit below estimates

In the second quarter, its operating income came in at €655 million, beating estimates of €639.2 million, driven by strong revenue growth and lower payroll taxes.

Such taxes, called social charges, are tied to the value of the company's share price. The company's shares have fallen about 16% so far this year.

Its quarterly revenue rose 14% to €4.78 billion, slightly below LSEG-compiled estimates of €4.80 billion. The revenue forecast for the third quarter of €5 billion was slightly above estimates of €4.93 billion.

Its monthly active users forecast of 788 million was below Visible Alpha estimates of 793.6 million, while its outlook for a 5 million increase in premium subscribers to 305 million was largely in line with estimates.

($1 = 0.8690 euros)

Aug. 4 (Reuters) - Spotify forecast third-quarter profit below Wall Street estimates on Tuesday, after the streaming giant reported slowing user growth in major markets of Europe and North America.

The Swedish streaming platform has launched AI features like "Personal Podcasts" and new offerings such as "Reserved" to attract more users and fend off competition from rivals including YouTube and Netflix, and AI music startups like Udio and Suno.

Spotify said it expects operating income of €670 million ($770.97 million) in the third quarter, below analysts' average estimates of €677.8 million, according to data compiled by Visible Alpha.