Spotify UK reports annual profit for first time

Spotify‘s UK company was profitable for the first time in its history in 2013.

Spotify UK Ltd reported a net profit of £2.6 million in the year, up from an £11 million net loss in 2012 – according to new data via Companies House.

Revenues grew 41.8% year-on-year – from £92.6 million in 2012 to £131.4 million in 2013 – with advertising revenues jumping 12.3% to £10.2 million from £9.1 million.

Spotify’s last reported global annual results, for 2012, showed a net loss stood at €58.7 million compared to a loss of €45.4 million in 2011.

The holy grail for major labels, subscription revenue, rose almost 42% in value terms for Spotify UK in 2013, up to £92 million from £64.8 million in 2012.

The UK company’s cost of sales for the year stood at £96.2 million, or 73.2% of revenues. This included the royalties paid to labels and rights-holders. Administrative costs stood at £20.6 million.Music Business Worldwide

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