Spotify Revenue Rises in 2015, But Losses Grow on Expansion Investment
Company says royalty payments to record labels and artists increased sharply last year
STOCKHOLM—Spotify AB nearly doubled its revenue in 2015, but losses grew amid continued investment in international expansion.
In a legal filing by its Luxembourg-based parent company, Spotify Technology SA, Spotify said Monday it had revenue of €1.95 billion last year, up 81% from €1.08 billion in 2014.
The Swedish online music-streaming company reported a net loss of €173.1 million, up 6.7% from €162.3 million last year.
Spotify said royalty payments to record labels and artists increased sharply last year. The company said it paid €1.63 billion in royalties, distribution and other costs for the year, up from €882.5 million in 2014.
Of its revenue, €1.74 billion came from paid subscriptions, up from €978.6 million last year. It nearly doubled its advertising revenue from €95.8 million to €195.8 million.
Launched in 2006, Spotify is approaching 100 million users, according to people familiar with the matter, of which 30 million have a paid subscription.