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COLOGNE, Germany – Swedish-U.K. online music firm Spotify saw revenues soar 458 percent last year but the company is still burning through cash, booking a net loss of more than $41 million.
Spotify released its 2010 financial results, which show the company increased sales from £11.32 million in 2009 to £63.17 million ($98.3 million) in 2010. Advertising revenue quadrupled over the same period to £18.06 million ($28 million) while subscription revenue shot up to £45.07 million ($70 million) from £6.81 million a year earlier.
But Spotify is still deep in the red. The company reported a loss after taxes of £26.54 million ($41.3 million) compared to a loss of £16.6 million in 2009.
A major figure in the debit column was Spotify’s administrative costs, which nearly tripled to £23.7 million ($37 million) in 2010.
Significantly, the 2010 figures came before Spotify passed its 1 million subscriber mark. The company says it now has more than 2 million paying customers, so subscriber revenue, and presumably also ad revenue, should show a spike in 2011.
Spotify’s figures for this year won’t be published until Q3 2012.
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