Spotify has published its financial results for 2016, and they reveal that the company’s net loss increased from €231.4m in 2015 to €539.2m ($601.4m) last year.
The company’s revenues grew from €1.93bn in 2015 to €2.93bn ($3.27bn) in 2016. So, Spotify’s income grew by just under 52% year-on-year, but its losses increased by 133%.
Spotify’s operating loss increased from €236.3m in 2015 to €349.4m in 2016, with the company citing “the cost of debt and the impact of foreign exchange rates on our debt and investments” as the reason for the disparity with its net loss.
As for costs, in the financial filing, Spotify cited “product development, international expansion, and a general increase in personnel” as the key elements in its operating loss for 2016.
The financials reveal that Spotify spent €206.9m on product development in 2016; €417.9m on sales and marketing; and €175.2m on general and administrating costs.
The company’s average headcount grew from 1,581 in 2015 to 2,162 in 2016, with wages and salaries expenses of €231m that year: an average salary of €106.8k.