Spotify lost 10% last night after trading on Wall Street. The group has just unveiled weak guidance, on the sidelines of its fourth quarter publication and against a backdrop of controversy around podcaster Joe Rogan – accused of racism and misinformation on the network. The list of musicians and podcasters who have recently removed their content from Spotify has grown, weighing on the streaming service. The CEO of the group noted the low subscription forecasts, refusing to attribute the fault to Rogan.
The Swedish group listed on the US market, which provides a music streaming service, deplored in the fourth quarter an adjusted loss per share of 24 cents, against -45 cents consensus and -79 cents a year before. Revenues totaled more than 3 billion dollars over the period ending in December (2.7 billion euros), 1% better than the consensus, against 2.6 billion a year earlier. The number of monthly active users increased by 18% to 406 million, a record. The company expects paying subscribers to number 183 million in the current quarter, against 184 million consensus. Revenues are expected to be around 2.6 billion euros. Finally, the group indicates that it will no longer provide annual guidance concerning subscriptions. Faced with the Rogan controversy, the group has increased its efforts at moderation and control.
“While Joe has a massive following, it’s actually the #1 podcast in over 90 markets, it also has to follow our policies,” Spotify’s chief executive Daniel Ek said of Rogan.
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