The total revenues of Spotify grew by 40% in UK which equals to £131.3 million. This is because of more students that sign up and the company’s partnership with Vodafone that helped boost its subscription sales.
This digital music service provider that allows access to millions of songs revealed that its Vodafone deal which offered a part of the package for the customers and the introduction of student discount helped make the subscription revenues jump from £64.7 million of 2013 to this year’s £91.9 million.
As for the monthly subscriptions reported to the platform, they range from £4.99 to £9.99. Its ads sales went up by £1.2 million, from £9 million to £10.2 million.
Spotify UK also reported a profit last year for £2.5 million but it wasn’t good enough for the company to bounce back from its £11 million loss in 2012 according to the Companies House files.
As a spokesperson of the company said, the digital music service provider utilized its previous year’s loses in order to lessen its tax bill. This means that the platform didn’t pay any tax in 2012.
When it comes to the number of employees, the London office of the company grew a bit from 111 to 120 with the highest paid employee took home a total of £72,728. The year earlier, the unnamed highest paid direct earned £95,625 but it’s not clear whether the same person earned the figures mentioned or not.
Accounts filed with Companies House show that the cost of sales covering royalties that were paid to musicians and record labels went down as a revenue percentage although there are sources saying that this happened because of the accounting procedures change.
Spotify was founded in 2008 by Swede Daniel Ek which has to date already raised more than $500 million in funding from Goldman Sachs, actor Ashton Kutcher, Li Ka-shing which is the richest man in Asia and Sean Parker who is the founder of Napster.
Currently, Spotify operates in 58 countries with over 40 million users all around the glove and more than 10 million paying subscribers. The company has slowly expanded and is currently offering its service to more people than it ever catered to before. This is a clear indication that the company is making ground is beginning to provide more reasonable and appropriate deals for subscriptions which is contributing a huge increase to its revenue.