Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.


(Reuters) -Spotify Technology said currency moves and a big increase in hiring would push it to an operating loss in the second quarter, sending the streaming giant’s shares down 11% on Wednesday despite a forecast-beating rise in first quarter revenue.

The company predicted it would make an operating loss of 197 million euros ($208 million) in the current quarter, but said investments would position it for growth in the decade ahead.

“Spotify’s got to spend in order to continue attracting new users,” said Hargreaves Lansdown analyst Laura Hoy. But there’s no way around the fact that such steep losses will eventually start eating into the group’s sturdy cash position.

Spotify said its total number of monthly active users rose 19% to a record 422 million in the first quarter ended March 31, and it saw a jump in advertising income.

A service outage in March caused some users to be involuntarily locked out of the service, prompting about 3 million to create new accounts to log back in. Excluding this anomaly, monthly active users would have reached 419 million.

The company has bet big on podcasts, investing over a billion dollars in acquiring shows such as the “The Joe Rogan Experience” and other businesses in a bid to draw users to a growing non-music audio segment.

Spotify said listening reached a record in the quarter, as members choose from among 4 million podcasts.

Overall podcast consumption is strong and increasingly sticky,” said CEO Daniel Ek during the investor call.

A backlash over Rogan’s podcast, in which he was accused of spreading misinformation about COVID-19 and criticized for his use of racial epithets, did not translate to a net loss of listeners or subscribers.

The Joe Rogan controversy that rocked Spotify this February now feels like a hiccup on the company’s ascension to top global streaming audio platform,” said Forrester analyst Kelsey Chickering, noting that its share of the audio streaming market was twice the size of Apple Music.

The Swedish company posted a 24% increase in first-quarter revenue to 2.66 billion euros ($2.82 billion). Analysts on average had expected revenue of 2.62 billion euros, according to IBES data from Refinitiv.

The company now expects total monthly active users of 428 million in the second quarter, a number that reflects a loss of about 5 million monthly listeners because of the decision to suspend service in Russia.

It forecast second-quarter revenue of 2.8 billion euros, compared with estimates of 2.81 billion euros.

Premium subscribers, who account for most of the company’s revenue, rose to 182 million from 158 million in the first quarter, while advertisement-supported revenue rose 31% to 282 million euros.

($1 = 0.9417 euros)

(Reporting by Akash Sriram in Bengaluru and Dawn Chmielewski Editing by Shounak Dasgupta and Mark Potter)

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!

By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts