Africa-focused music streaming platform Mdundo.com has hit a significant milestone, reaching 30.8 million monthly active users (MAUs) by the end of 2023.
This marks a 16% increase from June 30, 2023, when the company’s MAU stood at 26.6 million, and puts the company well on track to achieve its goal of 50 million MAUs by 2025, the company said on Wednesday (February 7).
“The milestone is in-line with our 2025 goal of reaching 50 million monthly active users and driving value per user through premium telco products,” Mdundo, listed on the Danish stock exchange, said in its fiscal half-year report.
While overall revenue for the first half of fiscal year 2023/24 (1H 2023/24) declined 12% YoY to DKK 5.7 million (USD $823,000 at current exchange rates), a key driver of growth lies in the company’s subscription service. Subscription revenue surged 48% YoY to DKK 3.1 million ($448,000) compared to DKK 2.1 million in the same period last year, now accounting for a dominant 55% of total income.
“The milestone is in-line with our 2025 goal of reaching 50 million monthly active users and driving value per user through premium telco products.”
Mdundo.com
This shift, from zero paid service revenue in 2019/2020, highlights a strategy of partnering with telecommunication providers and offering premium features.
Despite the positive developments in subscriptions, advertising revenue saw a 41% YoY dip to DKK 2.5 million in 1H 2023/24. Mdundo attributed this decline to a delayed and underperforming reseller agreement. However, the company remains confident in its advertising product’s potential and expects solid growth in this area moving forward.
Mdundo also reported a 21% YoY improvement in EBITDA, reaching negative DKK 3.3 million (-$476,000) compared to negative DKK 4.2 million in the previous year. This aligns with the company’s 2025 goal of achieving positive EBITDA. Cash-burn was also kept under control, limited to DKK 2.1 million in 1H 2023/24.
“Management considers the loss for the period as well as the cash burn in line with the growth strategy and mission of the company to become the primary pan-African music service with 50 million unique monthly users by 2025,” said Mdundo.
During the six-month period, the company actively invested in brand building and user engagement, launching marketing campaigns with key telecom partners like Vodacom in Tanzania.
Looking ahead, Mdundo projects its full-year 2023/24 revenue to reach DKK 14-17 million (approx. $2-2.5 million), and forecasts an EBITDA improvement of DKK 1-1.5 million, resulting in an expected range of negative DKK 6.5-7.5 million.
“The improvement in EBITDA is a result of continuously increasing revenue from current activities as well as tight cost-control and a strong focus on positive unit economics,” the company added.
Mdundo reiterated its forecast, issued in June 2023, to reach 35 million MAUs in FY 2023-2024.
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