Spotify’s UK subsidiary has published its financial results for 2017, and at first glance there’s a shock: revenues *down* by 55% year-on-year to £107.1m ($140.1m). However, that’s because Spotify started processing British listeners’ subscription payments through Spotify AB in Sweden – hence only £1.7m of subscription income is included in the 2017 UK results, compared to £215.7m in 2016. Still, there are some useful data points in the financials beyond that.
Spotify’s UK advertising revenues, for example, grew by 14% in 2017 to just under £20m. Compare that to Spotify’s global figures: in its DPO filing earlier this year, the company revealed that its global ad revenues grew by 41% in 2017 to $121m – nearly three times the growth recorded in the UK.
The Spotify UK financials also reveal the latest data about the company’s workforce in the country: its average number of employees over the course of 2017 was 226, up nearly 16% year-on-year. However, Spotify UK’s spending on salaries, social-security, share-based compensation and pension plans grew by nearly 59% to just under £27m last year.