Spotify’s revenues jumped 45% in FY2014 to over €1bn – but its operating losses also climbed.
The Swedish streaming platform’s operating losses grew to €165m in the last calendar year, according to new figures filed with the Luxembourg company registry.
That means its operating losses, up 77%, are widening faster, percentage wise, than its revenues are growing.
[Update: Spotify’s net loss after tax in FY2014 stood at €162 million, according to the WSJ.]
Total revenues for FY2014 stood at €1.08bn.
If it came good on its pledge to pay out 70% of income to rights-holders, that means that Spotify handed around €700m in royalties to labels, artists, publishers, songwriters and producers in the year.
The company said its total ‘royalty and distribution costs’ in 2014 amounted to €882 million, up from €603 million in 2013.
2014 revenue from paying subscribers accounted for 91% of revenue – the same as it was in 2013.
In FY 2013, Spotify posted revenues of €746.9m with operating losses of €93m.
Its 2013 net loss was €57.8m.
Reuters reports that Spotify said its increased losses were due to ‘substantial investments in product development and international expansion, as well as an increase in staffing’.
The company recently secured $350m (€312m) in a new funding round, as it was valued at $8bn (€7.1bn).
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