The French streaming service Deezer has published its financial results for the entire year, ending December 31, 2024.
The company’s consolidated income has reached € 541.7 million, reflecting a 12.7% year increase. In constant currency, its financial management shows an annual growth exceeding 10%.
This annual income figure translates to 586 million dollars based on the annual EUR-USD exchange rate published by the IRS.
Meanwhile, the total subscriber base (including direct subscribers and those acquired through partnerships with telecommunications companies, etc.) stood at 9.7 million at the end of 2024, representing a 3% year growth.
Deezer attributed its double-digit consolidated revenue growth to partnerships (such as RTL+ and Meli+) and a “12-month positive price influence on its direct segment.”
Deezer reported an operating loss of € 27.5 million ($ 29.76 million) in 2024, compared to an operating loss of € 64.4 million in 2023, indicating an improvement of € 36.9 million.
This change, according to Deezer, “mainly reflects an increase in adjusted gross profit and reduced operating expenses, including unpaid fees related to licensing agreements (which totaled € 10.1 million in 2024, down from € 18.8 million in 2023).”
Deezer generated 312.8 million euros (338.52 million dollars) in its home market of France, an increase of 8.6% year in constant currency.
Globally, excluding France, Deezer generated 228.9 million euros ($ 247.72 million), reflecting a growth of 18.7% year in constant currency.
Positive Changes in Cash Flow
Deezer stated in its investor presentation on March 18 that it ended 2024 with a “solid financial position and free cash flow for the first time in the company’s history.”
The company’s free cash flow totaled € 6.6 million ($ 7.14 million) in 2024, down from € 44.3 million in 2023.
This change in cash flow is attributed to the “sharp reduction in the adjusted loss of EBITDA, higher working capital generation compared to 2023 (23.8 million euros compared to 12.5 million euros), and lower operating expenses (including the impact of tax regulation).”
The adjusted EBITDA improved significantly, totaling € 4 million ($ 4.32 million) in 2024, compared to € 28.8 million in 2023.
Deezer also highlighted that it achieved an “adjusted EBITDA breakthrough in H2 (2024) for the first time in its history.”
CEO Alexis Lanternier mentioned that “looking ahead to 2025,” the company is “on track to achieve a positive adjusted EBITDA and free cash flow.”
Deezer categorizes its income into three segments: Partnerships, Direct, and Other.
Revenue from partnerships totaled 168.3 million euros ($ 182.14 million) for 2024, reflecting a growth of 26.6% year in constant currency, driven by the “strong performance” of new and existing agreements with large telecommunications operators, including RTL+, Meli+, and Sonos Radio HD.
Meanwhile, direct revenues increased to 344.4 million € (372.72 million US dollars) in 2024, representing a growth of 4.3% year in constant currency.
The platform attributes this revenue growth to several factors, including “an improved geographical mix in selected markets,” leading to continued subscriber growth in France of 4.3% year-on-year.
The “Other” income segment, which includes advertising and auxiliary revenues, totaled 29.0 million euros ($ 31.38 million) in 2024, up from 17.8 million euros in 2023, representing a significant increase of 63.2% year in constant currency.
Deezer attributes this performance to its Sonos Radio partnership, launched in Q2 2023 and resumed in September 2024, along with contributions from new wellness content licensed by partners from Q2 2024.
The adjusted gross profit of the company reached 133.7 million euros ($ 144.69 million), increasing by 21.2% compared to 2023, resulting from “a higher level of activity and a more favorable mix of offerings favoring direct revenue, improved terms with labels, and licensing of Zen content” for partners.
The adjusted gross margin improved from 22.7% in 2023 to 24.7% in 2024.
“2024 was a landmark year for Deezer, marked by progress, innovation, and growth.
Alexis Lanternier, Deezer
Commenting on the latest financial results, CEO Alexis Lanternier remarked, “2024 was a landmark year for Deezer, characterized by progress, innovation, and growth.
“We also expanded our subscriber base in France and experienced robust growth in our partner segment.
Lanternier added, “As we embark on a new cycle of value creation, we are focused on innovative features that serve the next generation of music lovers, providing a more social, personalized experience and exclusive interactions with their favorite artists.
“This marks an exciting new chapter for Deezer, filled with opportunities.
Lucas focuses on the interaction between music and society. He specializes in how music influences and reflects cultures, analyzing the role of sound in social, political, and cultural events around the world.
