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LeakedTT: Spotify's financial numbers have reportedly hit the web, can't make a profit

PrivCo obtains financial numbers for Spotify, paints a bleak picture of how the company is doing

| Business, Financial & Legal News | Posted: Oct 5, 2012 3:11 pm

A company known as PrivCo has reportedly obtained Spotify's private financial records. PrivCo attempts to obtain private, non-publicly traded companies' financial reports and sell the info. In this case, PrivCo has released the data on its website for all to see, and it paints a somewhat bleak picture.

 

TweakTown image news/2/6/26090_1_leakedtt_spotify_s_financial_numbers_have_reportedly_hit_the_web_can_t_make_a_profit.png

 

Even with increasing revenues for 2011 from 2010, Spotify reportedly widened its losses by 60 percent year over year. In 2010, Spotify brought in $97.5 million in revenue and had to pay out $101.4 million in royalty fees, distribution, and other costs. They then had to pay out personnel costs which netted them a $37.5 million loss for the year.

 

In 2011, Spotify managed to increase revenue by 151 percent up to $244.5 million, and the cost of sales followed right with them coming in at $239 million. Personnel costs increased by a massive 173 percent, which helped produced a massive $59 million loss for 2011. Spotify has yet to comment on these numbers, though if accurate, they might prove Spotify won't be around much longer.

NEWS SOURCE
Thenextweb.com

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