Spotify Revenue Up 40%, But Losses Continued In First Half Of 2017

Revenue at Spotify grew 40% in the first half of this year, according to a new report. Along with the gains, however, came continued losses. The numbers, which were shared privately with investors, come as the music streamer prepares for an IPO early next year.

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Revenue at Spotify grew to $2.2 billion in the first half of 2017, putting it on track to end the year close to the $5 billion revenue mark. That's a jump of about 40% over the previous year.

But major losses also continued, totalling between $118 million and $237 million. That's down a bit over 10% from the previous year's losses. The music streamer has negotiated slightly lower rates with #2 music group Sony. If Spotify can negotiate the same lower rates with # 1 Universal and #3 Warners, the company's losses could narrow further.

These new numbers come from a Spotify disclosure to its investors, first reported by The Information.

Shares on the private markets have traded in recent months at a valuation of $16 billion, up from $13 billion earlier in this year. This growing valuation is also good news for Spotify as it prepares for an IPO early next year. Some analysts predict a $20 billion valuation when the company goes public.

Spotify has declined to comment.