Company Financial Results Overview
The Paris Musical Company asserts that it has published its financial results for the fiscal year 2024, covering the 12 months ending on December 31.
According to Vera, the company earned an impressive Euro € 988.8 million in 2024, across all its operations.
This annual income translates to 1.070 billion US dollars based on the annual exchange rate of EUR-USD, as published by the IRS.
Income Growth and Performance Metrics
The company’s revenue increased by 108.5 million euros (117.42 million dollars), up from € 880.3 million in 2023, marking an increase of 12.3% year.
On an organic basis (adjusted for similar perimeter and constant exchange rates), the company’s revenue grew by 11.5% year.
The group’s Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was € 67.1 million ($ 72.6 million) in 2024, representing a margin of 6.8% compared to 5.7% in 2023.
The clean cash at the end of December 2024 was € 139.8 million ($ 151.29 million), driven largely by cash reserves amounting to 91 million euros, according to the company.
On an adjusted organic basis (which aims to provide insights on organic income growth after neutralizing foreign exchange influences), the company’s total revenues rose by 13.9% year. This was described as “a solid result, despite ongoing counter influences from FX and adverse streaming trends financed by advertising.”
Vera also noted that “Streaming help trends remained solid throughout the year; however, the positive impact of rising prices implemented by major DSPs in Q3 2023 faded in (H2 2024), and the anticipated price surge did not materialize.”
The company commented: “Ad-supported streaming trends made some advances but did not recover significantly in several developing markets, particularly in Asia. The built-in FX market was challenging throughout the year, despite some improvements compared to the previous year, especially in Q4 2024.”
On Thursday, the company announced a “record year for its artists globally, generating more than 800 billion streams worldwide.”
Additionally, the company stated that 2024 “was a transformative year across the business, entering new territories with the launch of its first imprint in Japan, Playcode, and breaking new ground with Indonesian Java Pop Imprint Krumulo.”
Vera also highlighted the completion of its acquisition of the DMC Turkish label, the recent launch of the Electro Label all night in partnership with Hype Aside, as well as the acquisition of “Powerhouse” White Hill Music and a strategic partnership with Global Records, which included 25% of Poolys in Romania.
Since its IPO in 2021, the company’s shareholders have issued annual financial statements. In June 2024, it was once again the subject of majority investment by firms including TCV and EQT, as well as founder Denis Ladegayleri.
According to Believe’s investor relations website, at the time of the earnings release after market close today, the consortium held a 96.63% shareholding in Believe.
The company also noted that its year was marked by the launch of its ‘Be Odyssey‘ program, which aims to “further optimize the technological capabilities of the central platform.”
Believe segments its global operations into two units:
- (i) DIY – Distributor Tunkor (referred to as “Automated Solutions” in their results); And also
- (ii) The performance of its primary premium label and artist services operation, known as ‘Premium Solutions’
Revenue from its ‘Automated Solutions’ grew by 15.9% year (on an organic basis) from € 55.2 million in 2023 to €64.6 million ($ 69.91 million) in 2024.
The company’s ‘Premium Solutions’ income simultaneously grew by 11.2% (on an organic basis) from €825.1 million in 2023 to €942.2 million ($ 1.019 billion) in 2024 (as detailed below).
The company’s total digital music sales (DMS) reached € 1.31 billion ($ 1.41 billion) in 2024, reflecting an increase of 8.3% year, driven by “double-digit growth of premium-class solutions and solid performance in automated solutions.”
Believe defines DRM as income received from partners in digital stores and social platforms prior to paying royalties to artists and labels.
It observed that the growth in digital sales “reflects the sustainable development of paid streaming and a slight increase in market share, which were tempered by the lack of recovery in ad-supported streaming in developing markets and continued FX challenges.”
Additionally, Believe examined its income geographically, reporting revenue growth across all territories with a notable increase in Europe, excluding France, Germany, and America.
Below is a detailed breakdown of the geographical income:
Europe (Excluding France and Germany)
The company experienced a 23.3% year growth in revenue in Europe (excluding France and Germany), generating € 326.4 million ($ 353.24 million) in the region in 2024. Europe accounted for 33% of Believe’s total income in 2024.
Vera reported strong growth across Eastern Europe and Spain, with revenues from Turkey “continuing to rise.”
Indicators in the UK were described as “positively uplifting,” highlighting the integration of Pentriki on a 12-month basis. The integration involved an investment of $ 51 million in March 2023.
The company observed that revenues from Sendric diversified across regions “due to increased integration” into Believe’s systems from Q2 2024, diverging from prior accounts in Europe (excluding France and Germany). Most of the revenue was redistributed to the United States.
America
In another part of the world, America saw an increase of 18% year to € 151.2 million ($ 163.63 million), accounting for 15.3% of Believe’s total income in the 2024 fiscal year.
As mentioned earlier, Vera indicated that “productivity improved due to reallocating some income from proposals in the United States as of (Q2 2024).”
The company stated that its “level of activity remained robust in Mexico and Brazil during the second half of 2024, which allowed it to further establish its market position in Latin music.” Vera also noted “significant progress in the USA,” with the evolution of Tunecore.
Believe’s automated business platform (i.e., DIY distribution platform Tunkor) “demonstrated significant revenue growth during the year, boosted by the success of the new marketing initiative Accelerator Tunecore.
France
In France, Vera’s revenue grew by 10.3% year to € 162.9 million ($ 176.29 million) in 2024, representing 16.5% of group income.
Revenue from digital technologies “improved further” in the market, but “growth rates slowed down” in the fourth quarter of 2024 compared to the previous quarter, largely due to a strong calendar of new releases.
Non-digital sales also witnessed a decline in the fourth quarter of 2024, “reflecting a significant downturn in live activities” compared to Q4 2023.
“Considering the market position and scope of artist services, non-constituent income has become critical, as it offers a comprehensive suite of services for the premier local artists it supports,” the company noted on Thursday.
Asia-Pacific Region and Africa
Vera’s income rose by 3.5% year in the Asia-Pacific region and Africa, totaling € 237 million ($ 256.49 million), which accounted for 24% of group income.
The company commented that its “level of activity” in Greater China and Japan is currently “building its position,” which remained strong throughout the year.
Vera stated that “ad-supported streaming events remained subdued in Southeast Asia and India, which continue to heavily rely on international DSP freemium models.”
However, paid trends remained “solid” in these markets, though they were less dynamic than expected, especially in India due to the shutdown of the local streaming service WYNK.
Germany
In Germany, Believe’s income remained “stable compared to last year with year-end growth, as the group’s strategy to reorganize its operations in the country began to yield results.”
Believe’s revenue in Germany increased by 0.4% year to € 111.3 million ($ 120.45 million).
According to the company, “non-constituent sales continued to decline due to a strategic decision to reduce dependence on contracts overly reliant on physical sales and merchandising, while digital sales returned to a positive trajectory.”
Looking ahead to the 2025 financial year, Believe predicts that “with limited growth in stream financing in (2025 fiscal year) and not anticipating a significant increase in subscription prices for major DSPs,” organic growth is expected to exceed +13.0% year in the 2025 fiscal year.
The company anticipates an adjusted EBITDA margin around 8% for the 2025 financial year.
The company reiterated its commitment to maintaining a profitable growth trajectory toward its long-term profitability target of 15% of adjusted EBITDA margin.
In 2025, Believe plans to “increasingly focus on value optimization, accelerate its strategy for controlled investments, and implement more aggressive automation and efficiency plans.”
(The company mentioned that in Q4 2024, it “reassessed its investments in local teams during the year and reduced the pace of hiring plans in some regions.”)
All conversions in this report were made using average annual data from the IRS.
Believe generated over $1bn in 2024, as company’s annual revenues grow 11.5% YoY
