Last week the UK-based Companies House posted Spotify Limited 2015 financials, showing before-tax, bottom-line profitability. Spotify Limited is the UK-specific version of Spotify’s global music service.
Chief Financial Officer and board member Barry McCarthy stated in the introductory remarks, “2015 was a big year for Spotify, and we had some very significant successes. In many ways, it was our best year ever.”
Top-line financials show a profit of GBP38-million, compared to GBP35-million in 2014. Total revenue for 2015 was GBP187-million. Cost of sales (mostly cost of music, in the form of royalties to music rights-holders) was GBP149-million — nearly 80% of total revenue.
Things get interesting on the bottom line, where 2014’s GBP1.2-million loss flipped in 2015, to a GBP1.2-million profit (before taxes).
In the Board of Directors comments, there is an upward tilt to a glance into the future: ‘The Group continues to have ambitious growth plans and has launched in several new countries during 2015 and will continue to do so in 2016.”