Paris-headquartered music streaming service Deezer has published its financial results for the first half of the year (the six-month period ending June 30, 2024).
The company’s consolidated revenues grew 14.6% YoY at constant currency to EUR €267.9 million ($288.44 million).
Deezer said that this growth reflects “the successful execution of the Group’s strategy, driven by the ongoing expansion of recent partnerships (such as RTL+, Mercado Libre) and the impact of a new series of price increases in the Direct segment”.
Meanwhile, the company’s total subscriber base (across direct subs and subs gained via telco partnerships etc.) reached 10.5 million at the end of H1, a 13.7% YoY increase.
Deezer splits its revenues into three segments on its balance sheet, ‘Partnerships‘; ‘Direct‘ and ‘Other.’
The company’s Partnerships revenue amounted to €86.9 million ($93.56m) in the first half of the year, up 38.2% YoY at constant currency.
This growth, according to Deezer, was driven by the addition of 1.4 million new subscribers via partnerships, which, it said “reflect[s] the good performance of new and existing deals with large Telecom operators in Rest of World, the progressive ramp up with RTL and Mercado Libre”.
Partnerships accounted for 32.4% of the company’s total revenues in the first half of the year, versus 26.8% a year ago.
Deezer’s Direct revenues, meanwhile, reached €171.5 million ($184.65m) in the first half of 2024, up 4.6% YoYat constant currency.
The streaming company said this revenue growth was driven by the following factors:
“The improved geographic mix with the strategic refocus of the Direct business on selected key markets leading to the continued expansion of the subscriber base in France (+3.2%) and the slowdown in Rest of World subscriber base at (9.8)%;
“The implementation of a more selective strategy in Direct to drive premium account subscriptions by reducing trials and promotions.”
Meanwhile, Deezer’s ‘Other’ revenue segment, which is made up of advertising and ancillary revenue, amounted to €9.6 million ($10.33m) in the first half of 2024, up 38.7% at constant currency).
Deezer reported that the launch of new content licensing deals for its Zen wellness app was a significant contributor to the growth of the segment in H1.
The company also divides its revenue sources geographically into France (the company’s home country) and the ‘Rest of the World’.
Deezer generated €154 million ($165.81m) in France, which was up 8.5% YoY and €113.9 million ($122.63m) in ‘Rest of the World’, which was 24.1% YoY at constant currency.
In terms of subscribers, Deezer counted 5.5 million ‘Direct’ subscribers in H1, down 1.5% YoYversus 5.6 million in H1 2023.
The company’s subscribers via Partnerships reached 5 million in H1, up 37.1% YoY versus 3.7 million in H1 2023 (see below).
Deezer’s ARPU (Average Revenue per Paying User) in H1 stood at €5.1 ($5.49m) for its Direct subscribers, up 6% YoY.
Elsewhere at Deezer, the company highlighted its recent appointment last week of ex-Wallmart executive Alexis Lanternier as its new CEO. He will succeed interim CEO Stu Bergen, effective September 2, 2024.
Deezer also noted that Iris Knobloch was reappointed Chair of the Board of Directors at the company’s Annual General Meeting. Deezer also appointed Carl de Place as Chief Financial Officer, effective August 1, 2024.
“The company is on track for profitability, and we are all proud of the current achievements.”
Stu Bergen, Deezer
Stu Bergen, interim CEO of Deezer, said: “These positive results are the result of strong performance throughout Deezer.
“The company is on track for profitability, and we are all proud of the current achievements. Deezer occupies a distinctive position within the music ecosystem, supporting artists, songwriters and rightsholders alike through initiatives focused on transparency, fairness, and innovation in music streaming.
“Deezer connects artists and fans through a wide range of unique music experiences and features.”
