September 24, 2022

The logo of French music streaming platform Deezer is seen before the opening ceremony of the company’s initial public offering (IPO) on the Euronext stock exchange in the business and financial district of La Defense in Courbevoie near Paris, France, July 5, 2022. REUTERS/ Benoit Tessier

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PARIS, Sept 21 (Reuters) – French music streaming platform Deezer’s ( DEEZR.PA ) first-half gross profit rose 9.1% from a year earlier, led by a rise in sales in its home country that underpinned its aim to to turn a profit by 2025, the company announced on Wednesday.

The group, once seen in France as one of the first and most promising so-called unicorns, companies valued at one billion euros or more, is seeking to convince investors of its capacity to turn a profit by 2025 by focusing on key markets such as France , Brazil and the Netherlands, and new services.

Gross profit increased to 45 million euros ($44.4 million) from 42 million a year earlier, while total sales increased by 12 percent in that period to 219 million euros, Deezer said in a statement.

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This is mainly due to an increase in average revenue per user (ARPU), which jumped by 12.4% to 3.9 euros. Deezer’s number of direct subscribers in France, where it generates about 60% of its consolidated revenue, rose to 3.3 million from 3 million a year earlier.

However, the total number of subscribers fell by nearly 3% to 9.4 million.

“By focusing our business on large attractive markets and entering new markets with a partnership-driven model, we are confident that we can capture a decent share of the booming streaming market and continue to improve our profitability to reach break-even by 2025,” CEO Jeronimo said is Folgueira.

Suffering from comparisons to larger rivals such as Spotify ( SPOT.N ) and Apple Music ( AAPL.O ), Deezer has yet to recover from its painful debut on Euronext’s Paris stock exchange in July, which saw its shares fall 35% in in July. the first few hours after publication. read more

The stock has lost 65% of its value since its first day of trading, valuing the company at 472 million euros ($466.38 million), compared with Spotify’s market capitalization of $18.7 billion.

($1 = 1.0120 euros)

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Reporting by Mathieu Rosemain; Editing by Elaine Hardcastle and Emelia Sithole-Matarise

Our standards: Thomson Reuters Trust Principles.

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