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Spotify reports earning growth despite not turning a profit

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Daniel Ek
Kevin Mazur/WireImage

Spotify and Taylor Swift may no longer be together, but newly released financial data should help the streaming service’s owners to cope with the break up.

The New York Times has a roundup of Spotify’s latest financial statements that shows while the company still has yet to turn a profit, it has seen significant growth in the past year.

Spotify earned about $1.03 billion in revenue in 2013, a 74 percent jump from the company’s 2012 earnings.

However, the company does not remain profitable, still enduring an $80 million net loss in 2013. That figure is improved from the 2012 losses, however, which totaled $115 million.

The report also touches on where Spotify’s earnings actually came from. Over 90 percent of its sales, or about $897 million, were earned by subscriptions to Spotify, while actually only $90 million came from advertising. “As a result,” the Times‘ Ben Sisario notes, “the royalty rates it pays to music companies for the free streams are substantially lower than those for the paid ones.”

Despite an upward trend, Spotify’s future plans still remain murky, as the Times notes. What moves the company makes will become more important as its competitors like Google Play, Amazon, and even now YouTube work to improve their music streaming services.

Read the rest of The New York Times‘ report for more on Spotify’s 2013 earnings, as well as what one of the service’s founders, Daniel Ek, has to say about Spotify’s royalty payments, in addition to employee and subscriber numbers.