SAMRO reports record growth, increasing member royalties

The organisation stated that this financial growth directly benefits its members by ensuring increased royalty distributions and fairer compensation.

At its 2024 Annual General Meeting (AGM) on 5 December, SAMRO reported a 15.2% rise in Total Company Licence Revenue, which increased from R593.7 million in 2023 to R683.8 million in 2024. This growth, according to the organisation, was driven by diversified licensing efforts that unlocked new revenue streams. New business ventures contributed R35.9 million to the total revenue, marking a 32.5% year-on-year increase, while digital revenue surged by 56.3%, reflecting a significant shift in music consumption habits.

For the 2023/2024 financial year, SAMRO distributed a record-high R429 million to its members, a 63.8% increase from the previous year. The rise in revenue also led to a 12.5% increase in the distribution expense, ensuring that more royalties would be available for distribution in 2025.

SAMRO highlighted that its commitment to financial efficiency had resulted in the lowest CTI ratio in ten years, dropping to 22.9% in 2024, a 2.1% decrease from the previous year. The organisation explained that by streamlining operations and optimising processes, it had been able to maximise royalty distributions while reducing overhead costs.

SAMRO CEO Annabell Lebethe described the achievement as a reflection of the organisation’s long-term commitment to cost-effectiveness and prudent financial management. “Seven years ago, the CTI ratio stood at 40%, and reducing it to 22.9% demonstrates our steadfast dedication to ensuring that more royalties go directly to members,” she said.

Looking ahead, SAMRO stated that its strong financial performance would support an ambitious growth strategy. The organisation has revised its revenue target, aiming to increase it from R1 billion to R1.2 billion by 2028. Additionally, it plans to distribute R1 billion in royalties to members within the same period.

Lebethe explained that achieving these targets would require continued strategic investments in technology and process improvements to enhance revenue collection, streamline royalty distributions, and expand SAMRO’s licensing reach.

“While these financial milestones are worth celebrating, we remain steadfast in our commitment to increasing value for members and reinforcing our role as an advocate for music creators,” she concluded.