Spotify narrows losses in Australia to $1.4m amid rolling job cuts — Capital Brief
Global streaming audio giant Spotify has narrowed its losses in Australia during a year that saw the company kick off an aggressive cost-cutting program that wielded the axe on more than 17% of its global workforce.
In fresh accounts filed with the corporate regulator on Monday, Spotify Australia reported net losses after tax for the year to 31 December of $1.43 million, compared to a $2.01 million loss the previous year, after booking a 8.8% revenue bump to $45.3 million. The company took in $18.56 million in “other income”, which mostly consisted of related party service income, for the year.
The Stockholm-headquartered company is structured so that Spotify Australia is a subsidiary of the UK-based Spotify Ltd, which is then controlled by Spotify Technology S.A., the ultimate parent company based in Luxembourg.
Spotify Australia makes the bulk of its local revenue from digital advertising, including display audio and video advertising sold against music and podcast content, while subscription revenues are booked offshore.
