Spotify’s UK business hits profit for the first time
Spotify has put its first UK profit down to ad revenues and an increase in subscriptions.
The company’s report noted that the UK arm of the business moved from £11m net loss in 2012 to a £2.6m net profit in 2013.
Speaking to the Guardian, a spokesperson said: “This growth can be attributed to a 42 per cent year on year growth in UK subscriptions and also to an increase in advertising revenue.
“The growth seen by Spotify Ltd mirrors the growth of digital recorded music revenues in the UK in 2013, which saw digital revenues account for 50 per cent of total UK record industry trade revenues for the first time, and a 41 per cent increase in streaming revenues on the previous year.”
The figures show that advertising revenue has risen 12.3 per cent to £10.2m in 2013, while subscription revenues have risen from £64.8m to £92m.
Over the past year, The Times and Vodafone have both announced deals with the music streaming service, with Spotify also inking a deal with Smirnoff.