In 2019, Profits At Spotify, A Spanish Subsidiary, Fell 27% To 81, 000 Euros.
2021-02-01 | by CusiGO
Spotify’s business in Spain is slowing. In 2019, the last financial year in which the accounts submitted by spotify span slu, a Spanish subsidiary, are available, the company’s revenue is 81088 euros, 26.84% lower than 110829 euros a year ago. If we focus on pre tax profit, the gap will be nearly 20%, from EUR 200366 in 2018 to EUR 160680 a year later.
However, while the latest figures may imply this, it does not mean that their subscriber numbers are down or their business profitability is in question. Among other things, the main business of the Spanish subsidiary is to sell advertising services. As a result, its results are not affected by the increase or decrease in the number of premium users, who will flow to spotify society in Sweden, where the platform originated.
In fact, according to the latest available data of the platform, by the end of September 2020, there were 144 million users in the world, an increase of 27% over the same period last year. At that time, the platform had about 113 million paying users. In addition, it has 320 million active users every month, who are the target users of streaming music companies’ advertising activities.
According to the accounts filed on September 16 last year, “in this financial year, the company’s main business is the sale of advertising services.”. In fact, with regard to the coronavirus crisis, he mentioned the risks and uncertainties that may affect social accounts: “the impact on the economy as a whole, especially on the functioning of society, is uncertain and will largely depend on the evolution and spread of the epidemic in the next few years And the reaction ability and adaptability of different economic entities.
As a result, the decrease in the business of spotify’s Spanish subsidiary is reflected in the decrease in the amount of advertising, rather than the overall viability of the company. As a result, the company’s turnover (mainly advertising business) decreased by 5.11% from EUR 9927691 in 2018 to EUR 9420650 in 2019.
The reduction of spotify span’s turnover and profits will also affect the payment of corporate tax. According to accounts, in fy2019, the company paid 79592 euros, 11% less than a year ago (89537 euros).
It should also be noted that this payment only takes into account the tax revenue of Spanish society, mainly advertising sales business. Spotify span explained in its accounts, “it is the parent company of spotify technology SA, headquartered in Luxembourg, and through its direct holding company spotify Ltd, headquartered in London.”