Revenues at Spotify’s UK business soared to almost £240m last year, as the popularity of the music streaming service continues to boom ahead of the expected stock market listing of the Stockholm-based company.

Total UK revenues at Spotify, which is expected to go public later this year or early in 2018 with a valuation of as much as $20bn (£15bn), rose by 27% to £237m last year. The main driver was a 26% growth in subscription revenues to £215m.

The company said in July that 60 million customers were paying for its premium service, which is advert-free and provides unlimited access to its music catalogue.

The UK operation also reported a healthy 62% rise in advertising revenue, from £10.8m to £17.5m. Spotify has reported global operating losses for more than a decade. However, its UK business quadrupled operating profits from £6m to £25m last year. Spotify paid UK tax of £840,000.

“We believe our model supports profitability at scale,” the company said in its filing to Companies House. “We believe we will generate substantial revenues as our reach expands. We are just at the beginning of a much larger market opportunity.”