Mdundo.com has today released its report for the first half of the financial year ending on 31st December 2022.
- Mdundo’s revenue for this period was over Kshs 115 million, an increase of 161% compared to the same period last financial year.
- Mdundo pays 50% of revenue to rights owners, which translates to Kshs 60 million during the first half of 2022 ending in December 2022.
- User Growth: The online music platform reached 23.4 million unique monthly users, representing 15% increase in June 2022. The increase in unique monthly has been majorly driven by use of smartphones, internet penetration, premium products, and partnerships with telecommunication companies. 3.5m monthly users were from Kenya, up from 2.7m in December 2021.
- Advertising revenue: The advertising revenue closed at DKK 4.3 million in the financial period H1 22/23 compared to DKK 2.3 million in the period H1 21/22, an increase of 89%. Majority of Mdundo’s advertising orders came from Kenya. [NB: DKK is Danish currency, the Kroner]
- Subscriber revenue: Paying Subscriber revenue accounted for DKK 2.1 million in revenue, an estimate of 33% of the total revenue for the financial period. The revenue subscription increased six (6) times in the current financial period compared to the previous H1 revenue subscription which stood at DKK 355 thousand. 508% growth in subscriber revenue YoY.
- The Music Catalogue: 487 thousand tracks had been uploaded by over 140 thousand African rights holders onto Mdundo.com, an increase of 32% from December 2021. In addition, the service offers 1.7 million songs from Warner Music Group, Universal Music Group, and Believe Digital. The fastest-growing licensing partners on Mdundo in the period were Slide Digital (Tanzania), Dapper and Mavin (Nigeria), Content Connect Africa (South Africa) and Saldid Records (Kenya). The growth is an indication of the catalog released within the period as well as marketing initiatives within the Mdundo service. Top DJ mixes on Mdundo were Kings Music Playlist, Black Market Records, Empawa Mixtapes, Mavins Playlist and Tamasha Records.
- Mdundo.com expects the number of monthly active users to increase to approx. 25 million at the end of the financial year 2022-23.
- Mdundo.com is aiming at a positive EBITDA of the financial year ending June 2025 as per the company’s strategy by growing the number of users to 50 million.
- The company is still expecting total revenue of DDK 13 – 16 million of the financial year ending 30th June 2023, up from DKK 7.2 million last financial year and EBITDA in the range of minus DKK 7 – 8.5 million in 2022-2023 as result of increased investment focusing on driving value per user through premium products and telco partnerships.
- Subscription revenue is expected to account for 40% of the total revenue within a few years.