Spotify predicted quarterly profits below the estimate on Tuesday, since the highest taxes related to employee salaries exceed the demand for music transmission, which caused their high -flying actions to fall 11%.
Investors are closely following the profitability of the Swedish company after price increases and cost reduction efforts of recent years help you achieve your first annual benefit by 2024.
Spotify has also been expanding its video content library to attract subscribers, a bet that has helped the actions to double their value in the last 12 months. But the highest price of shares has led to an increase in payroll taxes related to employee compensation, which hinders profits.
These taxes, called social loads, totaled 133.62 million dollars in the second quarter. That made Spotify register a loss of 42 cents per share, compared to a gain of $ 1.15 a year ago.
The company said the trend would continue in the third quarter, predicting an operational income of 559 million dollars. That is below the estimation of analysts of 648 million dollars, according to data compiled by LSE.
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Spotify prognostic profits below the estimate for high payroll taxes
The spotify income forecast of 4,840 million dollars was also below the estimate of 5,160 million dollars, while the projection of monthly active users (MAU) of 710 million was in line with the estimate. Its prediction of an increase of 5 million in premium subscribers to 281 million was above an estimate of visible Alpha of 279 million.
The company began investing in video podcasts in 2020 after buying the medium gimlet podcasts and Anchor FM networks. Last year, he signed a new several years with the Podcaster Joe Rogan.
“Now we have added more than 400,000 video podcasts … More people are consuming videos on the platform,” CEO Daniel EK told Reuters.
Spotify premium subscribers increased 12% to 276 million in the second quarter, exceeding an estimate of visible Alpha of 273 million. Mau additions from 18 million raised the total to 696 million.
Income increased by 10% to 4,830 million dollars, but did not reach the estimate of 4.9 billion dollars, due to an unfavorable exchange impact of around 440 basic points.
With Reuters information.
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