European music streaming service Spotify sustained losses worth £16.66 million in 2009, but still plans to go ahead with its US launch.
According to Music Alley, the company reported an operating loss of £16.4 million in its 2009 financial statics with the net loss amounting to £16.66 million after tax.
The company registered a revenue of £11.32 million for 2009 but its cost of sales was £18.82 million coupled with a distribution cost of £608,711 and administrative expenses at £8.29 million.
Spotify, which is due to launch in the US later this year, made a total of £4.51 million from advertising and £6.81 million from subscriptions.
In a statement, Spotify said: “2009 saw us focus on establishing a new and innovative music service and bringing it to millions of people across Europe. The groundwork laid in our launch year has been crucial to the significant achievements made in 2010.”