Spotify Technology SA (NYSE:SPOT) is due to release its financial results for the second quarter on Wednesday and are expected to be impacted by its exit from the Russia market.
The audio streaming subscription service said in April that its second quarter would be affected by the full closure of its services in Russia.
It completed its exit from the Russia market on 11 April, after a decision was taken to withdraw services in the country following its war on Ukraine.
The streaming service said in its first-quarter results in April that it expected to lose about 8 million of its 422 million monthly active users sequentially, partly as a result of its exit from Russia.
It guided for the addition of 14 million new net monthly active users in the second quarter, notwithstanding the impact of losing Russian users and the service outage benefit it offered users in March.
Spotify said it expected to gain 6 million new subscribers in the second quarter, which would increase its premium subscriber base to 187 million.
It had 182 million premium subscribers in the first quarter, compared to 180 million in the prior three months, fewer than it had guided for due to the early impact of its exit from Russia.
It forecast generating €2.8bn of sales revenue for the second quarter, assuming an "approximately 600 bps tailwind to growth” year on year due to movements in foreign exchange rates.
Spotify said it expected to post an operating loss of €197mln for the second quarter, including the impact of operating expenses due to unfavourable foreign exchange rates, on a gross margin of 25.2%.