Spotify said on Monday it would increase monthly price of its premium individual subscription in select markets from September, as the Swedish streaming giant looks to improve margins.

The company's shares jumped nearly 8%. They have gained about 40% so far this year.

The subscription price will rise to 11.99 euros ($13.86) per month from 10.99 euros in markets including South Asia, the Middle East, Africa, Europe, Latin America and the Asia-Pacific region.

Spotify said subscribers will receive an email explaining the price rise over the next month.

Price increases in the past, combined with cost-cutting efforts in recent years, have helped it to achieve its first annual profit for 2024.

The company saw an increase in monthly active users and premium subscribers during the second quarter, while higher taxes related to employee salaries led it to post a loss during the period and weighed on its third-quarter profit forecast.

Spotify has been expanding its library of video content to attract subscribers, including through its partner program, which is designed to help podcast creators by offering them monetization options.

A growing number of creators are joining the Spotify Partner Program, resulting in a significant increase in video content on the platform, CEO Daniel Ek had earlier told Reuters.

The streaming company is also benefiting from Apple's approval of its US app update to show subscription prices and external payment links, after a judge barred the iPhone maker from charging commission on off-app purchases.

Ek said this change has led to "a very positive uptick" in the US. If similar rules are adopted in Europe and the UK, it would benefit both Spotify and other app developers.