STOCKHOLM/LONDON Music streaming company Spotify's operating loss widened in 2016 but revenue rose significantly, the Swedish company said in its annual financial statement ahead of a possible stock market listing before the end of next year.
"It's an exciting time for our Spotify global advertising business".
Spotify didn't update its paid subscribers figure, but the company announced it had passed the 50 million milestone back in March. And this is also why small revenues can spell a lot of trouble for the company.More news: Gold, silver futures settle higher after Fed raises interest rate
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Spotify raised $1 billion in debt financing in March 2016 and it plans to pay record labels approximately 2 billion euros in royalty payments over the next two years, according to the filing. And with its deals with Sony and Warner Bros. approaching expiration, Spotify will need to pony up even more dough to keep its content. At least 50 million are paying subscribers and forego the above inconveniences. Their advertising revenue has also reportedly gone up by 50% since the end of previous year as well.
Most recently valued at $13 billion, Spotify could be floated within a year, a separate source told Reuters this month. The company is pitching its increased user base to advertisers and providing them with enhanced audience insights so that they can effectively target its 140 million-strong money while generating revenue for Spotify in the process.