Spotify grew its revenue to $3.5 billion last year, and will pay music labels billions over the next 2 years


daniel ek spotify

Andrew Burton/Getty

Spotify CEO Daniel Ek.


Music streaming service Spotify's operating loss widened in 2016 but revenue rose significantly, the company said in its annual financial statement, ahead of a possible stock market listing before the end of next year.

Spotify, which has been the subject of intense speculation about a potential direct listing on the New York Stock Exchange, made an operating loss of $389 million (349 million euros) in 2016, compared to a $263 million (236 million euro) loss the previous year.

Complimentary Tech Event
Transform talent with learning that works
Capability development is critical for businesses who want to push the envelope of innovation.Discover how business leaders are strategizing around building talent capabilities and empowering employee transformation.Know More

"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.

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.


Revenue rose to roughly $3.5 billion (2.93 billion euros) from roughly $2.15 billion (1.93 billion euros). The company revealed that it has 140 million monthly users on Thursday, up from 126 million at the end of 2016.

Spotify could be floated within a year, a source familiar with the matter told Reuters this month.