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SPOTIFY shares lose 9% due to negative company earnings reports

Spotify’s stock fell more than 9% on Wednesday, as the company’s monthly active user base fell short of its own estimate for the second quarter. The average revenue per user for the paid service mostly fell.
In this regard, the company blamed the Covid-19 virus for lighter adoption by users in many markets. In some cases, marketing campaigns have been temporarily suspended due to the severity of the epidemic. Spotify said higher wages offset the drop in marketing expenses.
The average revenue per user of the Premium streaming service declined by 3% year over year. However, premium revenue grew 17% to 2.05 billion euros ($2.41 billion).
Ad-supported revenue more than doubled to 275 million euros from 131 million euros in the same quarter last year, led by the company’s direct sales channels and podcasts. Total revenue rose 23% to 2.33 billion, and adjusted loss per share was 19 cents, just over half the expected 37 cents loss.
Spotify aims to close the current quarter with MAUs in the range of 377 million to 382 million and total premium subscribers between 170 million and 174 million. Total revenue will range between €2.31 billion and €2.51 billion.

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