81,088 euros won in 2019. 15,217 euros lost in 2020. The losses may not seem like much, especially in the case of a company like Spotify, but we are talking about its Spanish subsidiary, and we are talking about more than € 65,000 lost in just 12 months – and precisely the months of the Coronavirus pandemic, which precisely if something has brought with it has been to promote all online platforms due to confinements.
Spotify Spain in the red
The funny thing is that this seems highlight a downward trend, since in fiscal year 2019, Spotify Spain obtained a net profit 26% lower than that obtained in 2018. According data from El País Economía taken from the accounts that the company has presented in the Civil Registry, Spotify Spain is officially in the red, registering a drop in its turnover of 1.4 million, 15% in total – in 2019 it obtained 9.4 million and in 2020 the figure dropped to 8 million.
In 2016, Spotify Spain obtained almost 49 million euros for the sale of subscriptions to its Premium streaming music service. In 2020 it was only € 8 million, and 6.03 of these millions were obtained from advertising, the rest being Premium subscriptions and partners, which marks a decrease in 4 years of € 43 million no less.
The change from UK to Sweden
Curiously, Spotify Spain had an average of 22 employees in 2020, which was 2 more than in 2019, going from spending 1.95 million euros in personnel in 2019 to 2.77 million euros in 2020.
In December 2020 there was a change in ownership of the company as the parent company switched from Spotify Ltd. (domiciled in the UK) to Spotify AB (in Sweden). Will Spotify Spain continue to post losses this year? Or will they get those red numbers back in 2021?