Connect with us

Business

Spotify reports squeezed profit margins

Published

on

Spotify says its profit margins are squeezed, as the company fans economic concerns

Spotify believes slow advertising led to its shares slipping by 4 per cent in the third-quarter of this year.

The music-streaming giant was hit by Google’s parent company missing its own market estimates for quarterly revenue, and advertisers cutting spending altogether.

At the same time, the company’s operating expenses grew by 65 per cent year-on-year.

In its latest report, the company said acquisitions like Podsights, Findaway, Sonantic, Chartable, Whooshkaa and Heardle were the reason behind the increased costs.

Spotify’s stocks have fallen by close to 60 per cent this year. But the company’s chief executive told Reuters he is not concerned for the long haul.

“It’s definitely impacting us in short term, and it contributed to the gross margin hit that we had this quarter, too,” Daniel Ek said.

Spotify’s ad-supported income grew 19 per cent in the last quarter.

However, Europe remains a challenging market for the music service. It believes worsening economic conditions are the reason behind the slump in the region.

Investors maintain consumer spending on entertainment is suffering amid the rising cost of living, alongside the impacts of the pandemic, and the war in Ukraine.

Costa is a news producer at ticker NEWS. He has previously worked as a regional journalist at the Southern Highlands Express newspaper. He also has several years' experience in the fire and emergency services sector, where he has worked with researchers, policymakers and local communities. He has also worked at the Seven Network during their Olympic Games coverage and in the ABC Melbourne newsroom. He also holds a Bachelor of Arts (Professional), with expertise in journalism, politics and international relations. His other interests include colonial legacies in the Pacific, counter-terrorism, aviation and travel.

Continue Reading

Business

BlockFI the latest crypto collapse

Published

on

The contagion from the FTX crypto collapse has claimed another major scalp.

Cryptocurrency lender BlockFi has filed for Chapter 11 bankruptcy.

BlockFi claimed more than 100,000 creditors with liabilities up to $10 billion.

BlockFi was founded in 2017 and is now hoping bankruptcy protection will allow it to stabilize the company and restructure.

In a statement, the company says:

“With the collapse of FTX, the BlockFi management team and board of directors immediately took action to protect clients and the Company,”

“From inception, BlockFi has worked to positively shape the cryptocurrency industry and advance the sector.”

Days after FTX declared bankruptcy, BlockFi said it had significant exposure to FTX and its other corporate entities.

BlockFi is now the fourth crypto-focused company to seek bankruptcy protection this year, following FTX, Voyager Digital, and Celsius Network.

Continue Reading

Business

It’s Musk v Twitter in tech war

Published

on

A war has broken out between Elon Musk in his battle against Apple.

In a tweet, owner Musk says Apple may ban Twitter from the App store, which would be devastating for his company, and wonders if it has to do with free speech. He even tagged Apple boss Tim Cook.

Musk says: “Apple has threatened to withhold Twitter from its App Store, but won’t tell us why.”

This all comes in the wake of other organisations allegedly following Apple’s suit and cutting back their advertising spending since the $44 billion Musk takeover.

General Mills and Pfizer have been two companies that have gone down this path and diverted their spending elsewhere.

Right now users can still see ads in their Twitter feeds.

Continue Reading

Business

China protests hit global markets, crypto

Published

on

Investor watches markets

The protests in China are having a negative impact on cryptocurrencies and markets around the world.

Bitcoin failed to break its descent and fell more than 3 percent.

The global crypto market cap fell over 2%, sending major cryptos into the red.

Over the last 24 hours, overall crypto market volume grew by 22%.

It comes amid a round of investor nervousness in global markets spurred by protests in China against Covid restrictions.

Protesters outraged by harsh COVID-19 regulations called for China’s strong leader to quit.

China is the world’s second-largest economy and has a significant impact on global financial markets.

Stocks and cryptos aren’t considered safe havens, leading to bearing price action.

Analysts are hoping for a sharp bullish reversal if and when the protests end.

Continue Reading

Trending Now

Copyright © 2022 The Ticker Company PTY LTD