Spotify may have reached revenue of 1.9 billion euros ($2.2 billion) in the first half of 2017. The results were first reported by The Information, citing “people briefed on the numbers.” If accurate, that first-half revenue is already 70% of the company’s total revenue from 2016. It could also set Spotify on pace to reach full-year revenue of 4.1 billion euros ($4.9 billion). The Information’s sources said Spotify’s losses for the first half were between 100 million euros and 200 million euros. Spotify has not commented on the reports.
The streaming service’s financial state is under even closer scrutiny as it preps for possibly going public. It hired advisers this spring to guide it toward a potential direct listing on the New York Stock Exchange. Spotify has also secured new licensing deals with the major labels that could improve its financials, as royalties and copyrights were responsible for about 85% of its expenses in 2016. The updated deals likely grant Spotify smaller payments to the labels in exchange for letting performers gate their music temporarily to subscribers only. Subscriber numbers have been steadily rising for Spotify in the past year, and the company’s ability to continue building a paying audience is likely a critical factor in any effort it makes to go public.