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Financial Risk Management and Financial Instruments (Tables)
 12 Months Ended
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.
20202019
(in € millions)
Liquidity
Short term investments596 692 
Cash equivalents685 585 
Cash at bank and on hand466 480 
Liquidity position1,747 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.
2020SEKUSD
(in € millions)
(Increase)/decrease in loss before tax(13)67 
2019SEKUSD
 (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
Revenue274 379 239 809 1,384 32 
Cost of revenue199 274 166 543 938 24 
Total473 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
Revenue226 328 194 739 1,221 38 
Cost of revenue176 242 141 499 832 29 
Total402 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 levelLevel 1Level 2Level 3December 31, 2020
(in € millions)
Financial assets at fair value
Cash equivalents:
Money market funds685 — — 685 
Short term investments:
Money market funds25 — — 25 
Government securities198 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 investments2,228 — 49 2,277 
Total financial assets at fair value by level3,136 385 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 levelLevel 1Level 2Level 3December 31, 2019
(in € millions)
Financial assets at fair value
Cash equivalents
Money market funds585 — — 585 
Short term investments:
Government securities229 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 investments1,481 — 16 1,497 
Total financial assets at fair value by level2,295 471 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:
202020192018
(in € millions)
At January 116 16 — 
Initial recognition of long term investment9 — 16 
Changes in fair value recorded in other comprehensive income29 — — 
Changes in fair value recognized in profit or loss (5)— — 
At December 3149 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
PWERM50 %
Secondary market transactions50 %
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 value3.0 
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:
202020192018
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:
202020192018
(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 value263 35 (39)
Effect of changes in foreign exchange rates(5)18 26 
At December 3189 98 333 
Summary of Changes in Contingent Consideration Liability The table below presents the changes in the contingent consideration liability:
20202019
(in € millions)
At January 127 — 
Initial recognition of contingent consideration included in
purchase consideration of acquisition		— 13 
Contingent consideration payments(7)— 
Changes in fair value recognized in profit or loss13 14 
Effect of changes in foreign exchange rates(3)— 
At December 3130 27 
Summary of Changes in Convertible Notes
The table below presents the changes in the Convertible Notes:
2018
(in € millions)
At January 1944 
Non cash changes recognized in consolidated
statement of operations
Changes in fair value221 
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:
202020192018
(in € millions)
At January 11,481 1,630 910 
Changes in fair value recorded in other comprehensive loss747 (149)720 
At December 312,228 1,481 1,630