Spotify have revised its full year 2020 outlook on revenue, expecting a drop in advertising and unfavourable foreign exchange rates to affect their bottom line.
 
Despite the global uncertainty around COVID-19 in Q1, subscriber rates and levels have grown, and the company’s outlook for Q2 and the remainder of the year remains unchanged with the exception of revenue.
 
In hard hit markets like Italy and Spain, Spotify saw a notable decline in Daily Active Users and consumption, but over the last few weeks listening has started to rebound, and in many markets, consumption has meaningfully recovered.
 
Usage in Car, Wearable, and Web platforms dropped by double digits in some instances, however, the audience through TV and Game Consoles has grown materially, in excess of 50% over the same time period.
 
Spotify’s revised  full year 2020 guidance, with a drop in ad revenue and declining foreign exchange rates, is expected to reduce revenue to €7.65-€8.05 billion from €8.08-€8.48 billion, though this would still give the company an operating profit of €(150)-€(250) million.

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