Spotify financials leaked, show losses widening ahead of Stock Market listing
Spotify’s 2016 numbers have been leaked, and if they are accurate, they do not look good ahead of Spotify’s stock market listing at the end of this year or early next. Subscription tech business The Information was the source of Spotify’s leaked financials, and the report showed that investors have been told to expect annual operating losses at around $332 million with yearly revenues at $3.2 billion for 2016.
While revenues have certainly grown, losses have jumped from a $207 million operating deficit in 2015 to over $340 million in 2016. With losses widening by at least 64%, the question becomes about Spotify’s ability to turn a profit.
A Spotify spokesperson has yet to comment, and investors should certainly stay tuned for Spotify’s 2016 official earnings announcement ahead of the company going public.