Spotify Published Its 2nd Quarter Financial Report

One of the innovations that entered our lives with the widespread use of the internet is online music platforms happened. Thanks to these platforms, users are no longer required to download music one by one and transfer it to their smartphones. Because platforms that demand very small amounts offer unlimited music enjoyment to users. When it comes to online music platforms, the first thing that comes to mind is undoubtedly Spotify is coming.

Spotify officials announced that 2020 will be announced in a meeting held today. second quarter They announced some numbers about how it went. In the statements made by Spotify, it was stated that the number of paid subscribers of the platform increased more than expected. However, the company still failed to achieve its targets in terms of revenues and profits. 

According to the statements made by Spotify, the number of monthly users of the platform to 299 million rose. This shows that there is a 29 percent increase in consumers who actively use Spotify. The platform will be available worldwide in the second quarter of 2020. 8 million new subscribers won. 8 million new subscribers show that Spotify's new subscriber base increased by 27 percent on an annual basis. According to the latest figures, the number of Spotify Premium users is 138 million.

In the statements made by the authorities, the increase in operating expenses and shares-related expenses 48 percent It is stated that . Spotify, which experienced a 21 percent loss in advertising revenues, states that the main reason for this decrease is the coronavirus pandemic. According to authorities 30 June As of date, the platform has reached the usage and advertising levels before the COVID-19 outbreak.

Spotify also touched upon its expectations regarding the number of users in the future. According to the statements made by the authorities, Spotify will have around 317 million active users at the end of the next quarter. These users 144 million It is predicted that the majority of them will be Spotify Premium subscribers. According to the company, there will be an increase in the number of users and Premium subscribers of the platform in the next quarter. serious increases will happen.

Even though Spotify increased the number of subscribers, it could not balance its income and expenses at the desired level.

Spotify officials also announced the company's income and expense statement in their statements. In the statements made, Spotify announced that in the second quarter of 2020 $1.89 billion It was stated that there was an income and the annual increase of this income was 13 percent. However, the company's net loss for 356 million euros indicates that it is rising. One of the reasons for this loss is that revenue from Spotify Premium users decreased by 9 percent annually.

Spotify failed to meet its targeted loss for the second quarter of 2020. In fact, the difference between expectations and net results 126 million euros happened as. Spotify stated that the biggest reason behind this damage was “social expensesWhat Spotify means by social expenses is the compensation paid by Spotify in various countries due to stock values ​​and the salaries (and other expenses) of employees in some countries.

The results announced by Spotify are positive for Spotify despite the increase in losses incurred. it was positive It looks like. Because the company makes large investments in the platform and these investments are adopted by users in a short time. Especially those created by Spotify with famous names. podcast broadcasts, delights users. According to Spotify, podcast listening rates continue to rise at triple-digit rates on an annual basis.