Spotify loss widens ahead of potential stock market listing

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Daniel Ek, CEO and Founder of Spotify

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)