Deezer has reported its half-year financial results for the period ending June 30, 2022.
The Paris-based company describes itself as the world’s second largest independent music streaming platform, behind overall market leader Spotify.
Although it is present in 180 markets, Deezer is some way off Spotify’s subscriber base of 188 million. According to its half-year results, Deezer has 9.4m subscribers (5.6m direct consumer subs, and 3.8m via b2b partnerships).
Deezer’s home territory of France led the way with growth of 10.7% year-on-year to 3.3m consumer subscribers. However, for the Rest Of The World measurement, consumer subscriptions declined by 18.1% - a net loss of half a million customers (100,000 of those resulting from Deezer’s exit of the Russian market). Overall, total global subscriptions across consumers and business were down 2.9% for the first six months.
Nevertheless, total revenues increased by 12.1% (9.9% at constant currency) for the half-year to €219.4m. Deezer saw revenue increases across both France and Rest Of The World. Average revenue per user (ARPU) increased from €4.1 to €4.6, as a result of price increases and Deezer’s new strategy to focus on selected key markets.
Jeronimo Folgueira, CEO of Deezer, said, “Deezer’s growth has accelerated, and we are now back to double-digit growth. We are particularly happy with the strong performance in France, where our subscriber base has grown sharply. In the first half of 2022, we executed our strategy to focus the business on key markets, increased ARPU, and greatly improved the efficiency of our marketing spend across all markets. Our B2B revenues grew again on the back of new deals, and the recently launched partnership with RTL in Germany should accelerate our B2B growth in H2, and beyond.”
Folgueira said the performance showed “the strength of Deezer’s unique B2B/B2C strategy, as well as our capacity to capture the global growth of the music streaming industry”.
He added: “The success of our initial public offering on Euronext Paris is a major milestone, which gives us the resources to continue the successful expansion of Deezer. With a highly competitive product, a clear strategy, a renewed and experienced management team, supported by a strong new board of directors, I am very confident that we are now perfectly positioned to accelerate our growth, and deliver substantial value for all our stakeholders.”