Believe posts Africa revenue surge in 2022

The two regions made up a large portion of the group’s revenues, increasing from 22.6% in the previous year to 26.2% in 2022. Although ad-funded streaming revenues experienced a slowdown from June 2022, Africa’s market dynamics remained strong throughout the year.

Believe’s success in Africa can be attributed to its strategic positioning and investment on the continent, including expanding its presence by launching offices in key countries such as South Africa, Nigeria and Kenya.

Meanwhile, Believe posted revenue growth of €760.8m, a 31.8% increase from the previous year, with an even more robust organic growth of 32.2%. The company’s digital revenue growth was equally impressive, increasing by 33.8%, of which 34.7% was organic. Digital revenues represent 92.3% of the company’s overall revenues, compared to 90.9% in 2021. This success was attributed to the strategic positioning of its artists and labels in digital music and gaining market share across key markets in Europe and Asia.

In 2023, the company aims to continue with its profitable growth strategy, which targets a long-term 15% adjusted EBITDA margin. The company anticipates a continued increase in paid streaming, market share gains, and challenging ad-funded streaming monetisation. 

Believe expects organic growth of 18%, a further improvement on the adjusted EBITDA margin to approximately 5.%, and positive free cash flow. Additionally, it plans to leverage its cash to resume its acquisition strategy, taking advantage of the opportunities created by current market conditions.

“Every day the music market becomes more digital and our differentiated positioning and our competitive advantages in the digital world become clearer to our artists and partners, Believe founder and CEO Denis Ladegaillerie said. “The quality of services that our teams provide by leveraging their passion for music, digital expertise and technology solutions contributes to the success of a wide variety of local labels and artists around the world at all stages of their career. 

“In 2023, we will continue our profitable growth strategy: invest in our teams to grow market share, innovate in audience development products for our artists and labels, and further drive operational efficiencies through technology and scale to increase profitability. We aim to be the best music company at developing artists and labels in the digital ecosystem. Every day my belief that Believe is best positioned to succeed becomes stronger.”