Deezer was solid in the first half. Between January and June, the tricolor company achieved a turnover of 219.4 million euros, an increase of 12.1% over one year. She is optimistic for the coming months.
Deezer finds colors. After a rough start for the Paris Stock Exchange in early July, in which its valuation fell by nearly 60% after a few days of recovery, the French music streaming platform announced encouraging results at the end of the first half. In the period between January and June, the tricolor company achieved a turnover of 219.4 million euros, an increase of 12.1% over one year. In France, where the company generates 60% of its revenue, its turnover increased by 11.1%, to 132.4 million euros.
Currently, Deezer is not boxing in the same category as the industry giants Spotify and Apple Music. The French platform captures just 2% of the global market, far behind Daniel Ek (31%), according to MIDiA. By comparison, Spotify generated €2.9 billion in revenue in the second quarter alone.
Deezer is an online French music streaming service that gives access to millions of albums and music tracks and create custom playlists for use on your mobile devices, connected watch and even
The operating system :
Android, Windows 10/11, iOS iPhone/iPad/Apple Watch, macOS
A winning bet in strategic partnerships
In this context, Deezer is relying on a partnership-based strategy, such as Orange or Fnac in France, to develop. The platform has built a notable collaboration with the phone company TIM and e-commerce specialist Mercado Libre in Brazil, while it has an agreement with RTL in Germany. “In the first half of 2022, we implemented our strategy focusing on a few key markets, increased our average revenue per user (ARPU) and significantly improved the efficiency of our marketing spend in all our markets.”summarizes Jeronimo Fulgiera, President of Deezer.
This approach is starting to pay off, with the B2B branch growing 7.9% in the first half, to €57.6 million. Dans le même temps, le segment B2C a rapporté 155 millions d’euros sur la période, en hausse de 12,2%, notamment grâce à la hausse des prix du service et à un recentrage sur quelques marchés prioritaires, comme l’Allemagne Brazil.
However, Deezer’s strategic shift was accompanied by a 2.9% drop in subscribers in one year, to 9.4 million subscribers worldwide. This decrease is 3.4% in B2C and 2.1% in B2B. However, this decline is offset by average revenue per customer (ARPU) which rose by 12.4% during the first six months of the year, to €3.90.
Cyrine Deezer for the second semester
Satisfied with the results of 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 about the past six months. In doing so, it maintains its target of 455 million euros in sales volumes for the entire current year, an increase of 14% compared to 2021 (400 million euros). “We do not anticipate at this point any significant negative impact on our business or our financial performance.”the company said.
In addition to the sales volume, Deezer’s losses, which amounted to 123 million euros last year, will also be monitored. As a reminder, the platform hopes to become profitable by 2025, at which time it aims to generate €1 billion in revenue. Goals that don’t fit with Spotify’s goals, which are targeting 1 billion users by 2030 and $100 billion in revenue. However, both companies are looking for sustainable profitability that is still outstanding in the broadcasting market.