Music streaming service Spotify still not profitable

Music streaming service Spotify hasn’t made any profits again in 2013, the revenues of the company did increase with 73.6% but also the operational loss of the company got bigger.

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Spotify earned 430 million in 2012, last year the company made 746 million. An increase of 73.6%, The Guardian writes. The operational loss, which is before interest and taxes, increased as well. In 2012 the company lost 80 million, last year that was 93 million.

The net loss did decrease from  58 million to 87 million, but that was largely due to 38 million of  “fair value gains on derivative liability”,  an accounting term relating to the value of share options. Some individual Spotify offices proved to be profitable this year and it’s unknown whether the company has become profitable this year. Since last year the company has gained 14 million users, bringing the total to 50 million Spotify subscribers.

Most of Spotify’s revenues come from subscriptions, about 90% of the revenues were earned with paid subscribers. Only 22% of the Spotify users have a paid account, the rest of the users use the advertisement powered variant of Spotify. Spotify CEO Daniel Ek previously indicated that though the free version is necessary to let users try out Spotify.