The latest financial statement from Spotify indicates that its UK business significantly narrowed its operating losses in the 2011 financial year while total revenue grew to £95.5m.
In the year to the end of December 2011, Spotify UK's losses fell to £2.1m from £26.5m in the previous 12-month period.
Total revenues grew to £95.5m over the period from £63.2m in the prior year, fuelled by a £27.4m rise in subscription revenues to £72.5m.
The figures for the UK business also include revenues from Spotify’s five European subsidiaries until the end of May, at which point these revenues became recognised in local subsidiary companies.
“Taking this at face value, they [Spotify UK] are close to reaching operating profitability,” industry analyst Mark Mulligan told the FT. “It is good evidence that if you give the model time it can get to profitability.”
The Swedish company is currently in discussions to raise about $200m in new investment at a valuation of up to $4bn in March - the round has yet to close.