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Spotify reports squeezed profit margins

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2 years ago

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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.

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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.

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ASX positioned for strong start after positive stock rebound

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2 days ago

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September 10, 2024

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The ASX is set for a solid opening today, bolstered by overnight gains in the banking, commodities, and energy sectors.

Despite these positive movements, analysts are suggesting that the stock rebound and bond decline appear to be technically driven, noting that it may not mark the beginning of a longer-term trend.

Market analyst David Scutt from StoneX joins to discuss the latest market movements. #featured #trending

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Elon Musk is projected to become the world’s first trillionaire

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3 days ago

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September 9, 2024

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Elon Musk, the visionary entrepreneur behind Tesla and SpaceX, is projected to achieve an unprecedented financial milestone by becoming the world’s first trillionaire by 2027.

Currently the richest person alive, Musk holds a staggering net worth of $251 billion, with Tesla playing a major role in his fortune.

At this rate, experts predict his wealth could skyrocket, reaching the trillion-dollar milestone in just three years.

Tesla itself is growing at a remarkable pace, with a market value nearing $670 billion. #featured #trending

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Treasury Secretary believes the U.S. are on track for a “safe landing”

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3 days ago

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September 9, 2024

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Treasury Secretary Janet Yellen pointed to a “soft landing” for the economy, with unemployment slightly down despite slower job creation.

In a recent interview on Bloomberg, Yellen stated that “For the US, the kinds of metrics that we would monitor that would summarise risks — whether it’s asset valuations or a good degree of leverage — things look good, I don’t see red lights flashing”. #featured #trending

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