June 19, 2017

Spotify report operating loss of $389 million in 2016

Spotify, the Music streaming company, reported the 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. Company’s  revenue rose by more than 50 percent to EUR 2.93 billion.

Swedish company is now hoping to strike deals with Sony (SNE)  and Warner Music.

Spotify, which recently hired advisers to explore a direct listing on the New York Stock Exchange, reported an operating loss of EUR 349 million ($389 million) in 2016, up 47 percent compared with the previous year.

“This is explained by substantial investments that have been made during the year, mostly in product development, international expansion and a general increase in personnel,” Spotify’s Luxembourg-based holding company wrote in its regulatory filing on Thursday.

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