Believe revenues up by almost 18% in first half of 2023

The company, which trades on the Euronext Paris bourse, registered a 23.9% revenue growth in Europe, excluding France and Germany, generating €121.9m in the region in the first half of the year. Europe represented 29.3% of Believe’s total revenues in H1 of 2023.

In Africa and the Asia-Pacific region, Believe’s revenues grew by 23.6% to €112.2m, which represents 27% of the group’s revenues.

Operations in the Americas grew by 21.7% YoY, accounting for 14.6% of the group’s revenues, as Believe cited activity in Brazil and Mexico as being particularly strong throughout the first six months of the year.

In France, revenues rose by 12% YoY in H1 2023 and represented 16%, confirming the company’s position as a key player in France, while revenues in Germany rose by 0.5%, representing 13% of Believe’s group revenues.

The company says digital sales in Germany “were less dynamic at the end of the quarter” but that it “had successes in developing artists in digital genres”. Believe points to a recent joint venture with Madizin that it says started its commercial rollout “with promising signings”.

The company also reported that across its entire business, it saw digital organic revenue growth of 18% YoY in H1 2023 – reflecting a lower growth rate in Q2 2023 of 14% YoY due to “currency headwinds embedded in revenues received from digital partners and moderate ad-supported monetisation.”

Believe’s net cash at the end of June 2023 was €210.2m, which the company says provides it with “solid firepower for advances and acquisitions”.

“The start of the year has been marked by another strong performance of the roster thanks to our unique model and digital expertise despite currency headwinds and lower ad-supported monetisation,” Believe founder and CEO Denis Ladegaillerie said.

“This is a testament to the quality of service, which is at the core of our positioning in the industry. We recorded a significant level of signings as well as renewals by labels and artists on longer term and improved conditions. We have been focused on improving profitability and efficiency across the organisation. We have also been in a great position to seize commercial opportunities and to invest in advances against better conditions to fuel long-term growth.

Ladegaillerie added that Believe was heavily engaged in several innovative AI and generative AI exploratory partnership discussions in H1.

Believe also saw an increase in adjusted EBITDA for H1 2023 at €24.2m or a margin of 5.8%, up by 250 basis points YoY, reflecting “efficiency, control on investments and operating leverage.”