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flag Spotify's shares dropped 9% as higher salary taxes cut into profits, despite user growth.

flag Spotify reported a lower-than-expected third-quarter profit due to higher taxes on employee salaries, causing its shares to drop nearly 9% in premarket trading. flag Despite adding 8 million new premium subscribers and growing monthly active users by 11% to 696 million, the company's second-quarter revenue fell short of estimates at €4.19 billion. flag Spotify forecasts 710 million monthly active users and 281 million premium subscribers for Q3, with an operating income of €485 million, below analyst expectations.

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