Spotify Limited, the UK-based branch of Spotify that runs its music-streaming service throughout Europe, has reported an operating loss of £16.4 million for 2009 as a whole, and a net loss after taxation of £16.66 million.
According to the figures Spotify's revenues are roughly 40 percent advertising, and around two thirds from user subscriptions. Spotify ended 2009 with around seven million users in the Europe area - only around a quarter of a million of them were paying customers.
According to figures published by Music Ally Weblog the company enjoyed revenues for 2009 of £11.32 million. However the music-streaming company endured distribution costs of £608,711, cost of sales equal to £18.82 million, and administrative expenses of £8.29 million.
Spotify responded to the figures in a statement to Music Ally: “2009 saw us focus on establishing a new and innovative music service and bringing it to millions of people across Europe. The groundwork laid in our launch year has been crucial to the significant achievements made in 2010. Further strengthening and expansion of the service remains our top priority.”
The company is believed to be in the process of securing additional funding.