French streaming service Deezer announced a 12.1% revenue increase in Q4, reaching 130.7 million euros ($141 million), with a full-year revenue of 484.7 million euros ($524 million), up by 7.4%. Despite a reduction in full-year adjusted EBITDA to -28.8 million euros (-$31 million) and a significant decrease in net loss to 59.6 million euros ($64 million), the company forecasts a 10% revenue growth for the upcoming year and aims to halve its adjusted EBITDA losses, attributing the positive outlook to improved gross margins and cost control measures.
The subscriber base grew to 10.5 million, fueled by successful B2B partnerships, including new collaborations with Sonos, RTL, and Mercado Libre, and renewals with TIM, Fnac Darty, and Orange. Average revenue per user (ARPU) also saw an increase both in B2B and direct subscriptions. Amidst these financial developments, CEO Jeronimo Folgueira announced his resignation to pursue personal projects, marking an end to his tenure that included taking Deezer public through a merger and initiating a novel partnership with Universal Music Group for artist-centric royalty calculations.
Deezer's stock showed modest improvement ahead of the earnings release, signaling investor optimism despite the executive change.
Source: Billboard
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