Economic|Streaming services
The value of the company’s shares, which made a loss of EUR 39 million in October-December, plunged on the secondary stock exchange.
Storm The value of Spotify’s shares dived on Wednesday after the company announced its frozen October-December results and weak forecasts for the current quarter.
The company said it made a loss of EUR 39 million during the last quarter. However, in the corresponding period a year earlier, the loss amounted to as much as EUR 125 million.
In the aftermath of the earnings announcement, the value of the company’s shares plunged into the secondary stock exchange. According to the news agency AFP, the value fell by about 10.9 percent, but Bloomberg says the value fell by as much as 23 percent.
Spotify did not give in its investor letter special reason for losses and poor forecasts. Instead, the company stressed that due to the corona pandemic, there is a higher than usual probability of fluctuations.
Financial News Agency Bloomberg emphasizes that Spotify’s earnings for 2021 exceeded analysts’ forecasts. The service had 406 million users at the end of the year, and the company’s operating profit was on the plus side for the first time. According to the company, growth in the previous quarter was boosted by India, Indonesia and Latin America.
In October – December, the number of the company’s monthly active users and premium subscribers also increased in line with previous forecasts.
The company’s net sales increased by 24 percent to EUR 2.7 billion.
Company did not say what effect Joe Roganin the uproar surrounding the podcast recently has so far been in the company’s business. Among other things, music legends Neil Young and Joni Mitchell announced that they were withdrawing their copies of the service because of Rogan.
Read more: Neil Young’s threat claim didn’t work, Spotify said it was removing the artist from its music service
Read more: Did Neil Young start a chain reaction? Singer-songwriter Joni Mitchell also announced he was leaving his production at Spotify
The musicians based their decision on false information about the corona pandemic and vaccines in Joe Rogan’s exclusive podcast, published by Spotify.
Rogan, 54, has a multi-year contract with Spotify that is estimated to be worth at least about € 90 million. For example, in her program, Rogan has urged young people to avoid coronary vaccination and recommended the use of the parasitic drug ivermectin to treat coronavirus disease.
Read more: Joe Rogan, who spreads the vaccine scarecrow, is a money shampoo for Spotify, and that’s why Spotify needs to support him – The dispute is about bigger money
I argue Spotify is limiting corona claims at its core with rules on dangerous content. From now on, Spotify is expected to block, among other things, claims that AIDS, covid-19, cancer or other serious life-threatening diseases are scams.
CEO of the company Daniel Ek has said it is still too early to assess the impact of the Rogan fuss on the company’s operations.
For the first half of the year, however, Spotify forecast lower profit margins and a slowdown in subscriber growth. The company estimates that only three million new premium subscribers will be available on the platform in January-March, less than in recent quarters.
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