Deezer Posts Double-Digit H1 2024 Revenue Jump, Eyes Profitability Under Incoming CEO Alexis Lanternier
A nighttime shot of Deezerâs headquarters in Paris, France. Photo Credit: Deezer
Deezer has reported $289.81 million (âŹ267.9 million) in H1 2024 revenue, including a nearly 25% year-over-year spike in all nations except France.Paris-headquartered Deezer, now set to welcome a new CEO in September, just recently unveiled its half-year financials. The mentioned revenue total marks a 14.9% YoY hike and resulted in large part from a $123.21 million (âŹ113.9 million) contribution attributable to Rest of World. And in France, where Deezer charges slightly less than Spotify, the platform identified $166.59 million (âŹ154 million) in half-year revenue (up 8.5% YoY).
Behind the sums and the growth, Deezer acknowledged 10.5 million total subscribers (up 13.7% YoY): 5.5 million direct (down 1.5% YoY) and the remaining five million from third-party partnerships (up 37.1% YoY). Geographically, 3.7 million of the direct subs are associated with listeners in France (up 3.2% YoY), whereas the remaining 1.8 million (down 9.8% YoY) reside in other countries.
Running with those points and Deezerâs enhanced focus on established markets, H1 2024âs monthly ARPU jumped 6% YoY to $5.52 (âŹ5.10) for direct subscribers and increased 3.5% YoY to $3.14 (âŹ2.90) for partnership subs, per the document.
All told, adjusted EBITDA improved from -$14.17 million (-âŹ13.1 million) in H1 2023 to -$5.41 million (-âŹ5 million) in 2024âs opening half, which delivered a net loss of $20.98 million/âŹ19.4 million (almost half that of H1 2023), Deezer relayed.
Execs are anticipating a strong performance during the second half of 2024 â with long-sought profitability in the cards for 2025, according to higher-ups.Though Deezerâs H1 2024 earnings call didnât feature any particularly groundbreaking information, execs reiterated the perceived room for further subscriber growth in France as well as the UK. Additionally, a more expensive deluxe tier isnât in the near-term cards for Deezer, but the platform is working âon a number of initiativesâ to expand its own packages.
Meanwhile, with Spotify having ceased sponsoring multiple French music festivals in response to the European nationâs âstreaming tax,â Deezer, which spent $34.28 million (âŹ31.72 million) on sales and marketing in H1 2024, has extended its support to eight festivals.
During todayâs trading, Deezer stock (DEEZR on the Euronext Paris) spiked nearly 6% to $2.01 (âŹ1.86) per share. That value still represents a sizable decline from 2024âs beginning as well as a 26% falloff from late July of 2023.
Bearing the figures in mind, Deezer is moving forward with a $6.49 million (âŹ6 million) share buyback program that will run into December of 2025. As part of the initiative, Deezer today âentered into a share buyback agreement with an investment services provider,â with this deal encompassing as many as 300,000 shares through the end of August.
