$1bn music app made just £40m

A BRITISH tech star valued at $1bn made just £40.3m in revenue last year, despite having more than 300m users.

London-based Shazam Entertainment, which is behind an app that can identify any song being played, is believed to have been the first UK mobile tech firm to break the billion-dollar valuation mark after a major investment in 2015.

But sales then fell, and the firm has yet to make a profit. It has now returned to growth, with revenue rising 14pc last year as losses narrowed from £16.6m to £4m.

Music fans use Shazam to identify songs heard on the radio, TV or in public. The firm then gets a cut from sales of those songs, and also makes money on advertising and other marketing deals. Bosses stressed they had won major contracts with new brands and invested in marketing, expansion and product development.