Spotify has reported record profits as its cost-cutting measures continue to yield results.

The streaming platform, featuring artists from Taylor Swift to Fleetwood Mac, announced profits of €266m for the three months ending in June.

This marks a record quarterly profit and contrasts sharply with the €247m loss recorded during the same period the previous year.

Following the update, Spotify shares surged by as much as 12%, reaching their highest level since 2021.

The Swedish tech company has eliminated over 1,500 jobs since early last year in an effort to achieve profitability.

Spotify has faced challenges due to high interest rates and a cost-of-living squeeze that has curtailed household spending.

Despite these issues, the platform boasts 246 million paid subscribers, surpassing the 245 million predicted by analysts and reflecting a 12% increase from the previous year.

Revenues for the period reached €3.5bn, a 20% increase from the previous year.