* Net loss widens to 58.7 mln euros
* Revenues hit 435 mln euros vs 190 mln in 2011
* Expanding to Latin America, Asia this year
STOCKHOLM, July 31 Music streaming web service
Spotify more than doubled revenues in 2012 to 435 million euros
($577 million) as it expanded to new markets and almost doubled
its users, documents showed on Wednesday.
The Stockholm-based company, which provides free on-demand
music or ad-free tunes for paying customers, posted a 58.7
million euro net loss, compared with the 45.4 million loss it
had in 2011 on turnover of 190 million.
The figures were filed by its holding company Spotify
Technology in May and published on the website of the registry
of companies in Luxembourg, where the group is registered, on
The unlisted company, which has more than 20 million
"active" users and over 5 million paying subscribers and has
received financial backing from the likes of Northzone, Kleiner
Perkins Caufield & Byers, Accel Partners and DST, would not
rule out further fundraising activities to support its growth.
"We cannot exclude the need or desire to raise more funds in
the future to fund future growth initiatives," it said.
Spotify, founded in 2006 by Swedes Daniel Ek and Martin
Lorentzon, strikes royalty deals with record labels and pays
about 70 percent of its revenue back to rights holders.
Streaming and on-demand music has soared in popularity
alongside smartphone use, but companies like Spotify and Pandora
- which has almost 68 million active listeners - have
struggled to make profits due to the cost of royalty fees.
The sector has attracted keen interest from global
technology giants like Google, Amazon.com Inc
and Apple Inc which see music streaming as crucial to
grow their presence in a smartphone-dominated media world.
Spotify said that it almost doubled the number of monthly
active users during 2012 as it launched in countries such as
Germany, Australia, New Zealand and Ireland.
This year, the company made its first forays into Latin
America and Asia.