Paris-headquartered music company Believe generated annual revenues of €880.3 million in 2023.
That revenue figure converts to USD $952.7 million (at average annual exchange rates as per the IRS).
The company’s full-year financial results (its third set of full-year results since floating on the Paris Euronext in 2021) were published on Wednesday, (March 13).
According to Believe‘s filing on Wednesday, its annual revenues grew by €119.5 million, from €760.8 million in 2022, reflecting an increase of 15.7% YoY.
On an organic basis (at a like-for-like perimeter and constant exchange rate), Believe’s revenues grew 14.4% YoY.
The Group’s Adjusted EBITDA (earnings before interest, taxes, and depreciation) was €50.3 million ($54.43m) in 2023 (representing a margin of 5.7% versus 4.6% in 2022).
Believe’s net cash at the end of December 2023 at €214.2 million ($231.81m), which the company said provides it with “solid firepower for advances and acquisitions”.
Believe breaks down its global operations into two divisions:
- (i) DIY distributor TuneCore (referred to as ‘Automated Solutions’ in its results), as well as
- (ii) the performance of its core premium label and artist services operation (referred to as ‘Premium Solutions’)
The company’s ‘Premium Solutions’ revenues grew 15.8% YoY, from €712.6 million in 2022 to €825.1 million ($892.96m) in 2023 (see below).
Believe’s revenues from its ‘Automated Solutions’ grew 14.6% YoY, from €48.2 million in 2022, to €55.2 million ($59.74m) in 2023.
The company reports that its Digital Music Sales (DMS) exceeded €1.2 billion ($1.298m) in FY 2023, reflecting “double-digit growth in Premium Solutions”, noting that “DMS in Automated Solutions were affected by the strengthening of the euro versus the dollar”.
Believe says that DMS is the revenue generated from its digital store partners and social media platforms before royalty payment to artists and labels.
Believe said in its investor presentation on Wednesday that it “further demonstrated its commitment to develop audiences for artists at all stages of their career and achieved a strong performance of its existing roster of artists and labels” in FY2023.
Speaking with analysts on the company’s earnings call on Wednesday, Believe Founder and CEO Denis Ladegaillerie said: “Believe’s mission is to develop artists and labels at all stages with expertise, respect, fairness, and transparency. What does that mean? We source artists and labels at early stages. And support them in becoming established artists and labels.
“Once established, we support them in their journey to become top artists or labels in their market segments. Once at the top, we support them in reaching new heights.
“From a business model standpoint, we aim to maximize the commercial potential of our artists and labels, music and brands, by supporting them creatively and in developing their audience. And we participate in their commercial success.”
“From a business model standpoint, we aim to maximize the commercial potential of our artists and labels, music and brands, by supporting them creatively and in developing their audience. And we participate in their commercial success.”
Denis Ladegaillerie, speaking on Believe’s earnings call on Wednesday
Ladegaillerie added that Believe “gained additional market share in most key markets [in 2023], and is now positioned as a top three player by digital music market share for local acts in key European and Asian markets, including four of the top 10 global music markets, Japan, Germany, France and India.”
Digging deeper into Believe’s financial results by region, the company reported that its revenues grew 25.9% YoY in Europe (excluding France and Germany) to €264.6 million ($286.36m), representing 30.1% of its total revenues in FY 2023 (see below).
The company said that this revenue growth was uplifted by the integration of UK-born music publishing platform Sentric, which it acquired in March in a deal Believe said at the time valued Sentric at €47 million ($51m).
Elsewhere in Europe, Believe reported that it “remained on a strong growth trajectory in Southern Europe and Eastern Europe” and that “digital monetization was affected by currency headwinds notably in the UK but was globally well-oriented during the year in the whole region”.
Meanwhile, Believe’s revenues in the Americas grew by 17.4% YoY to €128.1 million ($138.63m) and represented 14.6% of the company’s overall revenues last year.
Believe noted that the level of the company’s commercial activity in Brazil and Mexico in particular “was strong throughout the year”, which it said, showcases its “success” in Latin American music.
In the US, which is led by Believe’s TuneCore business, the company reported that it recorded “strong growth after a slight improvement in the first nine months of the year”.
In Asia Pacific and Africa, Believe’s FY 2023 revenues grew 14.9% YoY to €228.9 million ($247.72m) which represented 26% of the company’s total revenues.
In France, Believe’s revenues grew 14.9% YoY in 2023 to €147.8 million ($159.95m) and represented 16.8% of the company’s revenues.
In Germany, Believe generated revenues of €110.9 million ($120.02m), which was down 2.4% YoY in 2023 and represented 12.6% of the company’s revenues.
Believe reported that digital sales “returned to healthy growth” in Germany in Q4 2023 “driven by the strong positioning [of] local acts and was also supported by the ongoing diversification of music genres in the roster”.
The company added, however, that its non-digital sales “further declined” in Germany last year as it “accelerated its exit from contracts that were too heavy in physical sales and merchandising”.
“Believe is posting today healthy results, fully in line with expectations. These results are the outcome of tremendous teamwork of our teams in furtherance of our mission to develop artists and labels at all stages of their careers with expertise, respect, fairness, and transparency
Denis Ladegaillerie, Believe
Denis Ladegaillerie, Founder and CEO said: “Believe is posting today healthy results, fully in line with expectations.
“These results are the outcome of tremendous teamwork of our teams in furtherance of our mission to develop artists and labels at all stages of their careers with expertise, respect, fairness, and transparency.
“In 2023, we have continued to hire great people, invest in technology and innovate with our partners with one objective: nurture early-stage talent, elevate established acts and support top-tier artists in reaching new creative and commercial heights.
“Invest and innovate to create ever more value for our artists and labels at all stages will remain the core of our strategy in 2024 and in the years to come!”.Music Business Worldwide
