Spotify’s UK advertising sales increased to £19.99 million in 2017.
According to financial results lodged at Companies House, ad revenues were up 13.7% year-on-year. Advertising on Spotify includes display, audio and video advertising.
The revenue rise was down to an increase in the number of impressions sold, which was driven by the growth of the direct sales advertising business.
Overall, revenues at Spotify’s UK division decreased from £237.8m to £107.1m. But the drop was explained by Spotify AB, the Swedish parent company, taking over UK subscription revenue sales in late 2016.
Cost of UK sales, including royalties and distribution costs, totalled £31.56m, down from £166.71m as a result of the shift of the subscription business. The company has prioritised growth over profit as it expands globally.
Profit after tax was £3.49m, up from £1.93m in 2016.
Admin expenses in the UK shot up from £38.33m last year to £58.63m. Wages and salaries hit £19.63m, up from £12.67m. Spotify now has 226 employees in Britain compared to 195 in 2016.
The financial statement lists Tom Connaughton as a new director following his appointment to the company earlier this year.
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