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Financial Risk Management and Financial Instruments (Tables) | 12 Months Ended
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Dec. 31, 2020
Disclosure Of Financial Risk Management And Financial Instruments [Line Items] |
Summary of Liquidity Position in Terms of Available Cash and Cash Equivalents and Short Term Investments | The Group’s policy is to have a strong liquidity position in terms of available cash and cash equivalents, and short term investments.
| 2020 |  | 2019
| (in € millions)
Liquidity |  |  |
Short term investments | 596 |  |  | 692 |
Cash equivalents | 685 |  |  | 585 |
Cash at bank and on hand | 466 |  |  | 480 |
Liquidity position | 1,747 |  |  | 1,757 |
Summary of Immediate Impact on Net Loss Before Tax on Exchange Rate | The table below shows the immediate impact on net loss before tax of a 10% strengthening in the closing exchange rate of significant currencies to which the Group had exposure, at December 31, 2020 and 2019. The impact on net loss is due primarily to monetary assets and liabilities in a transactional currency other than the functional currency of a subsidiary within the Group. The sensitivity associated with a 10% weakening of a particular currency would be equal and opposite. This assumes that each currency moves in isolation.
2020 | SEK |  | USD
| (in € millions)
(Increase)/decrease in loss before tax | (13) |  |  | 67 |
2019 | SEK |  | USD
| (in € millions)
(Increase)/decrease in loss before tax | (13) |  |  | 121 |
Summary of Notional Principal of Foreign Currency Exchange Contracts by Hedged Line Item in Statement of Operations | The following table summarizes the notional principal of the foreign currency exchange contracts by hedged line item in the statement of operations as of December 31, 2020:
| Notional amount in foreign currency
| Australian dollar (AUD) |  | British pound (GBP) |  | Canadian dollar (CAD) |  | Norwegian krone (NOK) |  | Swedish krona (SEK) |  | U.S. dollar (USD)
| (in millions)
Hedged line item in consolidated statement of operations |  |  |  |  |  |  |  |  |  |  |
Revenue | 274 |  |  | 379 |  |  | 239 |  |  | 809 |  |  | 1,384 |  |  | 32 |
Cost of revenue | 199 |  |  | 274 |  |  | 166 |  |  | 543 |  |  | 938 |  |  | 24 |
Total | 473 |  |  | 653 |  |  | 405 |  |  | 1,352 |  |  | 2,322 |  |  | 56 |
The following table summarizes the notional principal of the foreign currency exchange contracts by hedged line item in the statement of operations as of December 31, 2019:
| Notional amount in foreign currency
| Australian dollar (AUD) |  | British pound (GBP) |  | Canadian dollar (CAD) |  | Norwegian krone (NOK) |  | Swedish krona (SEK) |  | U.S. dollar (USD)
| (in millions)
Hedged line item in consolidated statement of operations |  |  |  |  |  |  |  |  |  |  |
Revenue | 226 |  |  | 328 |  |  | 194 |  |  | 739 |  |  | 1,221 |  |  | 38 |
Cost of revenue | 176 |  |  | 242 |  |  | 141 |  |  | 499 |  |  | 832 |  |  | 29 |
Total | 402 |  |  | 570 |  |  | 335 |  |  | 1,238 |  |  | 2,053 |  |  | 67 |
Summary of Major Security Type, Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables summarize, by major security type, the Group’s financial assets and liabilities that are measured at fair value on a recurring basis, and the category using the fair value hierarchy. The different levels have been defined in Note 2.
Financial assets and liabilities by fair value hierarchy level | Level 1 |  | Level 2 |  | Level 3 |  | December 31, 2020
| (in € millions)
Financial assets at fair value |  |  |  |  |  |  |
Cash equivalents: |  |  |  |  |  |  |
Money market funds | 685 |  |  | — |  |  | — |  |  | 685 |
Short term investments: |  |  |  |  |  |  |
Money market funds | 25 |  |  | — |  |  | — |  |  | 25 |
Government securities | 198 |  |  | 31 |  |  | — |  |  | 229 |
Agency securities | — |  |  | 4 |  |  | — |  |  | 4 |
Corporate notes | — |  |  | 276 |  |  | — |  |  | 276 |
Collateralized reverse purchase agreements | — |  |  | 62 |  |  | — |  |  | 62 |
Derivatives (designated for hedging): |  |  |  |  |  |  |
Foreign exchange forwards | — |  |  | 12 |  |  | — |  |  | 12 |
Long term investments | 2,228 |  |  | — |  |  | 49 |  |  | 2,277 |
Total financial assets at fair value by level | 3,136 |  |  | 385 |  |  | 49 |  |  | 3,570 |
Financial liabilities at fair value |  |  |  |  |  |  |
Derivatives (not designated for hedging): |  |  |  |  |  |  |
Warrants | — |  |  | — |  |  | 89 |  |  | 89 |
Derivatives (designated for hedging): |  |  |  |  |  |  |
Foreign exchange forwards | — |  |  | 16 |  |  | — |  |  | 16 |
Contingent consideration | — |  |  | — |  |  | 30 |  |  | 30 |
Total financial liabilities at fair value by level | — |  |  | 16 |  |  | 119 |  |  | 135 |
Financial assets and liabilities by fair value hierarchy level | Level 1 |  | Level 2 |  | Level 3 |  | December 31, 2019
| (in € millions)
Financial assets at fair value |  |  |  |  |  |  |
Cash equivalents |  |  |  |  |  |  |
Money market funds | 585 |  |  | — |  |  | — |  |  | 585 |
Short term investments: |  |  |  |  |  |  |
Government securities | 229 |  |  | 39 |  |  | — |  |  | 268 |
Agency securities | — |  |  | 5 |  |  | — |  |  | 5 |
Corporate notes | — |  |  | 263 |  |  | — |  |  | 263 |
Collateralized reverse purchase agreements | — |  |  | 156 |  |  | — |  |  | 156 |
Derivatives (designated for hedging): |  |  |  |  |  |  |
Foreign exchange forwards | — |  |  | 8 |  |  | — |  |  | 8 |
Long term investments | 1,481 |  |  | — |  |  | 16 |  |  | 1,497 |
Total financial assets at fair value by level | 2,295 |  |  | 471 |  |  | 16 |  |  | 2,782 |
Financial liabilities at fair value |  |  |  |  |  |  |
Derivatives (not designated for hedging): |  |  |  |  |  |  |
Warrants | — |  |  | — |  |  | 98 |  |  | 98 |
Derivatives (designated for hedging): |  |  |  |  |  |  |
Foreign exchange forwards | — |  |  | 13 |  |  | — |  |  | 13 |
Contingent consideration | — |  |  | — |  |  | 27 |  |  | 27 |
Total financial liabilities at fair value by level | — |  |  | 13 |  |  | 125 |  |  | 138 |
Summary of Changes in Investment | The table below presents the changes in the other long term investments:
| 2020 |  | 2019 |  | 2018
| (in € millions)
At January 1 | 16 |  |  | 16 |  |  | — |
Initial recognition of long term investment | 9 |  |  | — |  |  | 16 |
Changes in fair value recorded in other comprehensive income | 29 |  |  | — |  |  | — |
Changes in fair value recognized in profit or loss | (5) |  |  | — |  |  | — |
At December 31 | 49 |  |  | 16 |  |  | 16 |
Summary of Weightings Applied to Valuation Method | The following weightings, up until the Group’s direct listing, were applied to each valuation method:
| 2018
PWERM | 50 | %
Secondary market transactions | 50 | %
Summary of Key Assumptions Used to Estimate Fair Value of Ordinary Shares and Contingent Options | The key assumptions used to estimate the fair value of the ordinary shares and contingent options using the PWERM, up until the Group’s direct listing, were as follows:
| 2018
Revenue multiple used to estimate enterprise value | 3.0 |
Discount rate (%) | 13 |
Volatility (%) | 32.5 – 35.0
Summary of Assumption Used to Estimate Fair Value of Warrants | The warrants are valued using a Black-Scholes option-pricing model, which includes inputs determined from models that include the value of the Company’s ordinary shares, as determined above and additional assumptions used to estimate the fair value of the warrants in the option pricing model as follows:
| 2020 |  | 2019 |  | 2018
Expected term (years) | 1.5 |  | 0.5 – 2.5 |  | 0.8 – 1.5
Risk free rate (%) | 0.11 |  | 1.58 – 1.59 |  | 2.55 – 2.58
Volatility (%) | 50.0 | % |  | 32.5 | % |  | 40.0 | %
Share price (US$) | 314.66 |  |  | 149.55 |  |  | 113.50 |
Summary of Changes in Warrants Liability | The table below presents the changes in the warrants liability:
| 2020 |  | 2019 |  | 2018
| (in € millions)
January 1 | 98 |  |  | 333 |  |  | 346 |
Issuance of warrant for cash | — |  |  | 15 |  |  | — |
Issuance of shares upon exercise of, or net settlement of, warrants | (267) |  |  | (303) |  |  | — |
Non cash changes recognized in profit or loss |  |  |  |  |
Changes in fair value | 263 |  |  | 35 |  |  | (39) |
Effect of changes in foreign exchange rates | (5) |  |  | 18 |  |  | 26 |
At December 31 | 89 |  |  | 98 |  |  | 333 |
Summary of Changes in Contingent Consideration Liability | The table below presents the changes in the contingent consideration liability:
| 2020 |  | 2019
| (in € millions)
At January 1 | 27 |  |  | — |
Initial recognition of contingent consideration included in purchase consideration of acquisition | — |  |  | 13 |
Contingent consideration payments | (7) |  |  | — |
Changes in fair value recognized in profit or loss | 13 |  |  | 14 |
Effect of changes in foreign exchange rates | (3) |  |  | — |
At December 31 | 30 |  |  | 27 |
Summary of Changes in Convertible Notes | The table below presents the changes in the Convertible Notes:
|  | 2018
| (in € millions)
At January 1 |  | 944 |
Non cash changes recognized in consolidated statement of operations |  |
Changes in fair value |  | 221 |
Effect of changes in foreign exchange rates |  | (20) |
Issuance of shares upon exchange of Convertible Notes |  | (1,145) |
At December 31 |  | — |
PWERM |
Disclosure Of Financial Risk Management And Financial Instruments [Line Items] |
Summary of Weightings Applied to Valuation Method | The PWERM valuations, up until the Group’s direct listing, weighted the different scenarios as follows:
| 2018
Market Approach – High Case Public Company | 55 – 70%
Market Approach – Low Case Public Company | 28 – 35%
Market Approach – High Case Transaction | 0 – 3%
Market Approach – Low Case Transaction | 0 – 2%
Private Case – Income and Market Approaches | 2 – 5%
Tencent Music Entertainment Group |
Disclosure Of Financial Risk Management And Financial Instruments [Line Items] |
Summary of Changes in Investment | The table below presents the changes in the investment in TME:
| 2020 |  | 2019 |  | 2018
| (in € millions)
At January 1 | 1,481 |  |  | 1,630 |  |  | 910 |
Changes in fair value recorded in other comprehensive loss | 747 |  |  | (149) |  |  | 720 |
At December 31 | 2,228 |  |  | 1,481 |  |  | 1,630 |

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