Spotify spots first UK profit

Spotify’s UK business has reported its first profit, citing strong ad revenues and an increase in subscriptions.

Spotify’s UK business has reported its first profit, citing strong ad revenues and an increase in subscriptions.

The music streaming company reported a growth from £11m net loss in 2012 to a £2.6m net profit in 2013 in its UK-division.

The positive figures show that advertising revenue has risen 12.3% to £10.2m in 2013, while an influx of subscriptions have increased revenues from £64.8m to £92m.

Speaking to the Guardian, a spokesperson said: “This growth can be attributed to a 42% 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.”

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