Tech

Spotify loss widens ahead of potential stock market listing

Key Points
  • Spotify has been the subject of intense speculation about a potential direct listing on the New York Stock Exchange.
  • Revenue rose to 2.93 billion euros from 1.93 billion euros.
Spotify's Daniel Ek
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Swedish music streaming company 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 349 million euros ($389 million) in 2016. That compared with a 236 million euro loss the previous year.

"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.

Revenue rose to 2.93 billion euros from 1.93 billion euros.

Spotify could be floated within a year, a source familiar with the matter told Reuters this month. ($1 = 0.8965 euros)