Spotify shares hit a three-year high, jumping 15% in pre-market trading as the company reported record-high profit margins in the second quarter. Operating costs dropped due to job cuts, leading to a 16% decrease in expenses. However, Spotify fell slightly short of analyst forecasts for revenue and monthly active users. CEO Daniel Ek acknowledged the missed targets but expressed confidence in returning to strong growth.
In other news, businesses are expected to cancel their attendance at the Conservative party conference in record numbers, following Labour’s landslide victory in the general election. The lack of corporate interest could impact the party’s fundraising efforts. Similarly, the BBC faces challenges as half a million households cancelled their TV license fee last year, citing a lack of relevance to younger audiences who are turning to digital platforms like Netflix and YouTube.
Meanwhile, new home registrations in the UK fell by 23% in the second quarter compared to the previous year. The data, released by the National House Building Council, indicates a decline in construction activity, despite a quarter-on-quarter uptick. With the new Labour government promising housing reforms and an increase in social and affordable housing, the industry will be closely watched for any signs of improvement. In the Horizon inquiry, former postal minister Baroness Neville-Rolfe revealed she was never informed of key reasons behind the halt in prosecutions of sub-postmasters by the Post Office, including issues with the Horizon IT system.
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