Mdundo’s Financial Results
Mdundo, a music streaming service focused on Africa, has released its income for the first half of its financial year, revealing a 45% year increase in subscription income and an improvement in EBITDA.
As African music gains popularity worldwide, the company is increasingly targeting users outside of Africa.
Mdundo, which is listed on the Copenhagen Stock Exchange and reports earnings in Danish crowns, disclosed a subscription income of DKK 4.5 million (653,000 US dollars at the average rate for 2024) for the first half of its financial year, which concluded on December 31, 2024.
Advertising Revenue Decline
However, advertising revenue has fallen by 44% year, totaling DKK 1.4 million ($ 203,000). The company attributes this decline to a significant drop in digital advertising rates from June to November last year. Consequently, total revenue saw a modest advancement of 3% year to DKK 5.85 million.
“Despite the limited overall income growth during the period, our shift towards a subscription model is accelerating … supported by new partnerships with Glory Nigeria and Vodacom South Africa,” stated CEO Martin Nielsen and Chairman Jesper Dresher in a letter to shareholders.
Due to the lack of payment cards in key African markets, Mdundo heavily relies on partnerships with telecommunications providers to enhance subscriber growth, enabling users to make payments via their mobile phones.
By the end of the financial first half, the company recorded 38.8 million monthly active users (MAUs), reflecting a 26% year increase, and gaining 1 million from the previous financial quarter. Mdundo expects to reach 40 million MAUs by the end of the financial year (June 30), marking an 11% year growth. The company does not provide a breakdown of paid subscriptions versus advertising-supported users.
Mdundo reported a 36% reduction in EBITDA for the first half, showing EBITDA of DKK -2.1 million (-305,000 dollars) compared to DKK -3.5 million from the previous year. The smaller losses are attributed to “optimizing the company’s operations related to key income factors,” the earnings report noted.
The streaming service is now targeting new revenue streams: African music fans located outside of Africa.
“Our recently launched progressive web application caters to audiences outside of Africa, leveraging the growing global interest in African music,” said Nielsen and Dresher.
Mdundo observes “strong interest in services” from African communities in the diaspora across the USA, Britain, Germany, and France.
The company’s music catalog continues to focus on African music, with 87,000 new African songs added during this period, reaching a total of 772,000 tracks.
“Our transition to the subscription model is accelerating.”
Martin Nielsen and Jesper Dresher, Mdundo
Mdundo has maintained its leadership for the full financial year and anticipates revenue between DKK 12-15 million ($ 1.66-2.08 million), which represents an expected growth of 26% year at the midpoint.
It forecasts EBITDA to range between DKK -4 million and DKK -5 million, indicating an improvement of DKK 1.4-2.4 million compared to the previous financial year.
The company asserts that it is “on track” to establish two or three partnerships with telecommunications providers during this financial year.
