Spotify Stock Down On Q2 Loss, Despite Higher Revenues; Issues Q3 View

(RTTNews) - Shares of Spotify Technology S.A. (SPOT) were losing around 6 percent in the pre-market activity on the NYSE after the music streaming platform reported Tuesday a loss in its second quarter, compared to prior year's profit, despite higher revenues.

In the second quarter, net loss attributable to owners of the parent was 86 million euros, compared to prior year's profit of 274 million euros. Loss per share was 0.42 euro, compared to profit of 1.33 euros a year ago.

Income before tax plunged to 48 million euros from 270 million euros last year. Finance costs were significantly higher than last year.

However, operating income climbed to 406 million euros from 266 million euros in the prior year. Gross Margin improved by 227 basis points from last year to 31.5 percent.

Revenue grew 10 percent to 4.19 billion euros from prior year's 3.81 billion euros. On a constant currency basis, total revenue grew 15 percent.

Subscribers climbed 12 percent from last year to 276 million, and Monthly Active Users or MAUs grew 11 percent to 696 million.

Looking ahead for the third quarter, the company projects operating income of 485 million euros, gross margin of 31.1 percent, and total revenues of 4.2 billion euros. Total premium subscribers are expected to be 281 million and total MAUs to be 710 million.

In the pre-market activity on the NYSE, the shares were trading at $656.47, down 6.4 percent.

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