loses £4m

CBS-owned online music service made a loss of almost £4 million last year, as income sank by 70 per cent at its UK operation.

The company’s financial filing shows that total revenues fell 21 per cent year-on-year from £8.13 million in 2011 to £6.38 million last year. Gross profits more than halved, from £3.7 million to £1.4 million, with pre-tax losses narrowing slightly from £4.4 million to £3.94 million. derives the majority of its revenue from display and video advertising across its “traditional computer-based, mobile and other connected device platforms”. Advertising revenues fell by 23 per cent to £4.33 million. Subscriptions revenues shrank 12 per cent to £1.55 million. took its biggest revenue hit in the UK, the company’s largest market, where income fell by 69 per cent from £4.15 million to £1.27 million.

Revenues from its US operation grew by 22 per cent, from £2.98 million to £3.64 million, which now makes it’s biggest market in terms of revenue.

Revenue from “countries within the European Union” stayed flat at £740,000, with the “rest of the world” tripling to £725,000. said that its global unique user base was 23 million at the end of last year.

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