Spotify's net loss almost trebled last year

Despite surpassing €1 billion in revenue for the first time, Spotify's losses in 2014 were almost double of those the year before.

According to the Guardian, financial results from a report published in Luxembourg show that £119 million (€165.1m) was lost in 2014, compared to the £65.7m (€91.2m) in 2013. Its net losses aren't looking too good either, moving from 2013's £40.3m (€55.9m) to £117m (€162.3m) last year.

With 15m subscribers and around 60m active users, though, directors Martin Lorentzon and Pär-Jorgen Pärson believe the business is still sustainable.

In a management report, they wrote: "We believe our model supports profitability at scale. We have already proven that we've created real value for our users, and we know that the more time people spend with our product, the more likely they are to become paying subscribers.

"We believe we will generate substantial revenues as our reach expands, and that, at scale, our margins will improve. We will therefore continue to invest relentlessly in our product and marketing initiatives to accelerate reach."

[ Illustration: Mattias Adolfsson]