Deezer was solid in the first half. Between January and June, the tricolor company achieved a turnover of 219.4 million euros, up 12.1% over one year. She is optimistic for the coming months.
Deezer finds colors. After a difficult start to the Paris Stock Exchange in early July, its valuation having fallen by almost 60% after a few days before recovering, the French music streaming platform announced encouraging results at the end of the first half . Between January and June, the tricolor company thus achieved a turnover of 219.4 million euros, up 12.1% over one year. In France, where the company earns 60% of its revenues, its turnover increased by 11.1%, to 132.4 million euros.
Currently, Deezer is not boxing in the same category as industry giants Spotify and Apple Music. The French platform holds only 2% of the world market, very far behind the firm of Daniel Ek (31%), according to the firm MIDiA. By comparison, Spotify raked in 2.9 billion euros in revenue in the second quarter alone.
Deezer
Deezer is a French online music streaming service that provides access to millions of albums and music tracks and the creation of personalized playlists, to be used on your mobile devices, your connected watch, and even
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Downloads:
172 -
Release date :
08/22/2022 -
Author :
Deezer-Mobile -
Licence :
Free license -
Categories:
Music
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Operating system :
Android, Windows 10/11, iOS iPhone / iPad / Apple Watch, macOS
A winning bet in strategic partnerships
In this context, Deezer relies on a strategy based on partnerships, such as Orange or Fnac, in France, to develop. The platform has notably forged cooperation with the telephone operator TIM and the e-commerce specialist Mercado Libre in Brazil, while it has concluded an agreement with RTL in Germany. “In the first half of 2022, we implemented our strategy focused on a few key markets, increased our ARPU and significantly improved the efficiency of our marketing spend across all of our markets”summarizes Jeronimo Folgueira, the boss of Deezer.
This approach is beginning to bear fruit, with a B2B branch growing by 7.9% in the first half, to 57.6 million euros. At the same time, the B2C segment brought in 155 million euros over the period, up 12.2%, notably thanks to the rise in service prices and a refocusing on a few priority markets, such as Germany and Brasil.
However, the strategic shift undertaken by Deezer is accompanied by a drop in subscribers of 2.9% over one year, to 9.4 million subscribers worldwide. This decline is 3.4% in B2C and 2.1% in B2B. However, this decline is compensated by an average revenue per customer (ARPU) which rose by 12.4% over the first six months of the year, to €3.90.
Serene Deezer for the second semester
Satisfied with its results for the first part of 2022, despite the loss of 104,000 subscribers in the Russian market after the invasion of Ukraine, the French company is optimistic for the last six months. It thus maintains its objective of 455 million euros in turnover for the whole of the current year, up 14% compared to 2021 (400 million euros). “We do not anticipate at this stage any significant negative impact on our business or on our financial performance”the company said.
In addition to turnover, Deezer’s losses, which reached 123 million euros last year, will also be monitored. As a reminder, the platform hopes to become profitable by 2025, around which time it aims to generate one billion euros in revenue. Goals that are out of all proportion to those of Spotify, which is targeting one billion users by 2030 and $100 billion in revenue. Nevertheless, the two companies are in search of a sustainable profitability which is still pending in the streaming market.