Mdundo.com, a music streaming service with a focus on Africa, has achieved a significant milestone by reaching 30.8 million monthly active users (MAUs) by the close of 2023. This represents a 16% increase from June 30, 2023, when the company had 26.6 million MAUs, positioning it well on track to realize its ambitious goal of reaching 50 million MAUs by 2025. The company, listed on the Danish stock exchange, announced this achievement in its fiscal half-year report, emphasizing its dedication to enhancing user value through premium telco products.
Despite an overall revenue decline of 12% YoY to DKK 5.7 million (approximately USD $823,000), the company has seen substantial growth in its subscription service, with revenue surging by 48% YoY to DKK 3.1 million (about $448,000). This shift towards subscription revenue, which now accounts for 55% of total income, reflects the company’s strategy of collaborating with telecommunication providers and offering premium features, a departure from its zero paid service revenue in 2019/2020.
However, advertising revenue witnessed a 41% YoY decline to DKK 2.5 million in 1H 2023/24, attributed to a delayed and underperforming reseller agreement. Despite this setback, Mdundo remains optimistic about the potential for growth in advertising revenue moving forward.
In terms of financial performance, Mdundo reported a 21% YoY improvement in EBITDA, reaching negative DKK 3.3 million compared to negative DKK 4.2 million in the previous year. The company also managed to control cash burn, limiting it to DKK 2.1 million in 1H 2023/24, aligning with its goal of achieving positive EBITDA by 2025.
Throughout the six-month period, Mdundo prioritized brand building and user engagement, launching marketing campaigns in collaboration with key telecom partners like Vodacom in Tanzania. Looking ahead, the company projects its full-year revenue for 2023/24 to range between DKK 14-17 million (approximately $2-2.5 million), with an anticipated improvement in EBITDA and MAUs in line with its forecast issued in June 2023 to reach 35 million MAUs in FY 2023-2024.
