Spotify UK revenues surge to almost £190m as mobile subscriptions take off

World’s biggest music streaming service saw total UK revenues rise by 18% from £159m to £187.2m last year.

Revenues at Spotify’s UK business grew to almost £190m last year as subscription income soared by over 40% thanks to music fans flocking to the company’s mobile service.

Spotify, the world’s biggest music streaming service with an $8.5bn (£6.9bn) valuation, saw total UK revenues rise by 18% from £159m to £187.2m last year.

This was fuelled by a 44% surge in subscription revenues from £119m to £171m.

“This increase can be attributed to the transition from desktop to mobile as today the majority of new users signing up for Spotify are mobile,” the company said. “2015 was a big year for Spotify and we had some very significant successes. In many ways, it was our best year ever.”

Subscription income accounts for over 90% of Spotify UK’s total revenues, the remainder comes from advertising.


Last year, ad revenue fell slightly from £11m to £10.8m.

Spotify offers customers access to more than 30m songs and charges a fee of £9.99 a month for its premium subscription service, but also has a free service, which features advertising.

The UK company made a small pre-tax profit of £2m, up marginally from £1.67m in 2014, while globally the business made a loss of €173m (£156m) last year. Operating profits in the UK grew from £674,000 to £6m.

Spotify UK’s cost of sales, which it says is “primarily” royalty and distribution costs paid to music labels, artists and other copy right holders, rose 20% to £149m.

English singer-songwriter Ed Sheeran was the most streamed artist in the UK last year with more than 59 million listeners.

The streaming service has 100 million users worldwide, of which 40 million are paying subscribers.

Staff numbers in the UK grew from 167 to 180 last year, with 144 employees listed as working in sales and marketing.

The company’s staff bill grew from £12.3m to £13.7m; the highest paid unnamed director received £151,000.

Co-founder and chief executive Daniel Ek, who earlier this week added the role of chairman, resigned as a director of the UK company on 1 January.

Co-founder and chairman Martin Lorentzon tweeted on Thursday that he was stepping down to the role of vice-chairman, tweeting: “I’m looking forward to another 10 years at Spotify as vice-chairman, going on walks with and talking to Daniel daily”

Lorentzen’s announcement is the latest in a string of recent senior management changes at the company.

Last month, chief revenue officer Jeff Levick and Jonathan Forster, its European sales chief, announce their departure.

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