Africa-focused music streaming service Mdundo reported continued strong growth in monthly active users and paid subscriptions, despite headwinds that led to an overall revenue decline.
Mdun has the majority 37.8 million Monthly active users (MAU) year-over-year growth through September Annual increase of 29.5%the company said in its fiscal first-quarter (calendar third quarter) report.
The company reiterated guidance from earlier this year that it expects to reach 40 million Number of monthly active users as of the end of the financial year 2024/2025. Mdundo’s financial year runs from July 1 to June 30.
The company released its first-quarter numbers on Thursday (October 10), days after releasing its full-year 2023-2024 report, which reported revenue of 11.93 million Danish kroner ($1.74 million at current exchange rates), adjusted downward 5.3% from 12.59 million Danish kroner during the previous fiscal year.
(Mdundo is headquartered in Kenya but is listed on Denmark’s Nasdaq First Northern Growth Market exchange and reports its earnings in Danish kroner.)
However, the company noted that the revenue decline was due to the weakening of the African currency against the krona.
“In local currency terms, revenue actually increased 10% Paid subscription revenue increased compared to the previous year 112% In local currency,” Mdundo said.
The company reports that its fiscal year EBITDA loss narrowed to Danish krone – 6.4 million,from Danish krone – 7.7 million during the previous fiscal year.
Its guidance calls for EBITDA to further increase to DKK – 4 million DKK and DKK – 5 million DKK.
It also forecasts a significant increase in revenue in 2024/25, 15-17 million Danish kroner (US$2.19-2.48 million).
Significant growth in paid subscription revenue in Danish kroner terms Annual growth of 62%The company said it now accounts for 68% as a proportion of total revenue, from 35% during the previous fiscal year.
This helps offset 45% Advertising revenue fell during the fiscal year, which the company blamed on “delayed and generally unsatisfactory execution of our ad sales strategy.”
The company said it is “prioritizing paid subscriptions” and is expanding its network of partnerships with African wireless companies to do so.
Recently signed partnerships with: nigerian global communications corp.including 61 million Telecommunications customer and has signed an agreement with “another telecommunications company” that has not yet been officially announced.
Mdundo expects two to three such agreements to be signed this financial year. These agreements will add to existing deals with telecoms companies, e.g. Vodacom, MTN, Airteland Safaricom.
Since payment card penetration is low in the African market, developing partnerships with telecom companies is critical to expanding Mdundo’s paying user base. Through these partnerships, Mdundo users can make payments through their phone bills.
Mdundo told investors in its first-quarter report that its growth could face headwinds this fiscal year.
“A large portion of Mdundo.com’s users come from Google searchHowever, during the quarter, a copyright holder group mistakenly flagged 150,000 Mdundo.com URLs as copyright infringing pages. As a result… Google removed these URLs from the search engine, and Google Advertising Networkaffecting the number of organic users and advertising revenue throughout July, August and September,” Mdundo said.
“Mdundo filed a complaint with rights groups in early July, resulting in all links being reinstated in Google Search and Google Adsense as of early October… Management expects the impact of this incident to normalize in the second quarter and does not anticipate It will have no long-term effects.global music business
