(AOF) – Believe, the specialist in digital support for artists, reported a turnover of 197 million euros in the third quarter, an increase over one year of 36.9%. Over the period, digital sales represented 93.7% of the group’s turnover, growing by 39.6% year-on-year, driven by the performance of paid streaming, particularly in emerging markets.
On the outlook side, Believe now expects organic growth above 30%, an adjusted EBITDA margin of around 4.5% and solid positive free cash flow.
“Following the third quarter results, Believe has raised its guidance for FY22 and now expects organic growth of over 30%. Believe now expects adjusted EBITDA margins of 4.5% , compared to 4% previously”, underlines the broker UBS, adding that “over the next 10 years, we believe that the global market for recorded music can double to reach more than 50 billion dollars, thanks in particular to the growth of streaming penetration, led by emerging markets”.
Denis Ladegaillerie, Founder and CEO of Believe, said: “The rise of streaming and the very significant increase in digital music consumption all over the world has accelerated the digitization of more and more musical genres. Our digital DNA positions us in the best possible way to support this phenomenon and thus continue our trajectory of profitable growth.Our unique expertise in maximizing audiences and monetizing music for labels and artists within the digital ecosystem creates new opportunities. ”
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French players well positioned in audiovisual production
Among the independent players, the Frenchman Banijay is the world leader with an expected turnover of 3 billion euros in 2022 in a market which represents 100 billion in revenue. Mediawan (backed by the KKR fund), whose turnover amounts to 1 billion euros, is the other main French player in the sector. The market is still very fragmented because according to the European Audiovisual Observatory, the top twenty production groups were responsible for only 38% of titles created in 2020. However, experts believe that the sector has entered a phase consolidation. Thus Banijay’s stock market listing aims to enable it to better participate in this movement.
Business services
The collective catering giants are reviewing their prices
In the first half (ended at the end of March) of its 2021-2022 financial year, Elior benefited from a jump of nearly 20% in its activity to 2.2 billion euros. However, its losses increased from 53 million a year earlier to 266 million euros, partly due to a deterioration in margins. This movement is linked to the inflation of food and energy prices. To remedy this, the group has set up a global and systematic program to renegotiate all price lists with its customers.
As for Sodexo, price increases have already taken place. During the third quarter, they increased by more than 5% year-on-year. The group expects a further increase in tariffs of 4 to 5% by the end of the year. Despite strong growth in its results in the first half (ending at the end of February), the group was cautious for the second half of the year due to an environment that remains uncertain. Executives estimate that the pre-covid margin will be reached again in 2023.
Road transport wants to accelerate its energy transition
The weight of fuel continues to climb in the cost structure of carriers, whereas it usually represents 20% of the cost price. The actors are well aware of the need to carry out the energy transition to free themselves from their great dependence on the price of fuel. However, professionals have to face a lack of supply of clean heavy vehicles at affordable prices. Moreover, the use of hydrogen is still too limited. As for CNG (Natural Gas For Vehicles), although investments have been made in the past, gas trucks are not currently running given the soaring prices. Professionals are therefore asking for support from the public authorities to accelerate their transition.