Spotify has reportedly seen revenues surge to hit €1.9 billion (£1.69 billion) in the first half of 2017.
The figure, which was reported by The Information, puts the streaming company on course for a total of around €4.1 billion (£3.65 billion) in 2017. That would represent a 40% increase on revenue for 2016.
The latest reports follow the company’s recent long-term deals that include windowing release options with the majors and come ahead of a much-anticipated IPO. A deal has also been struck with Merlin.
Spotify has also increased its subscriber base by 40% over the last year.
However, Spotify is said to have recorded a significant operating loss over the six months of anywhere between €100m (£89.1m) and €200m (£178.3m). While the company still has to convince investors and the industry about its future profitability, the operating loss appears to have narrowed compared to the €556.7m (£496.1m) for the whole of 2016.
According to the reports, Spotify has made improvements on its gross margins, which increased to 22% in the first half of the year (15% in 2016). Spotify has not commented on the reported figures.