Anghami, the MENA region's leading music streaming service, has announced a significant 17% year-on-year growth in its subscriber base, reaching 1.73 million as of the end of the Q3 last year.
The company experienced an 8% year-on-year rise in adjusted revenue in the first nine months of 2023, amounting to $30 million. Its gross profit margin also improved notably, increasing to 22% from 12% the previous year, as per the preliminary results for Q3 released a while ago.
This impressive financial performance is largely attributed to a 17% year-on-year increase in revenue from direct subscriptions, which helped counterbalance a 21% decrease in revenue from telecommunications channels.
Anghami has acknowledged that the decline in revenue from telco channels was expected, given the company’s strategic shift towards prioritizing direct channels. These channels are seen as more lucrative due to better margins, more favorable collection terms, and a hedge against currency fluctuations.
The company also reported a 28% year-on-year growth in advertising revenue for Q3, excluding barter transactions. This growth is bolstered by the expansion of Anghami Studios, the company’s production unit that partners with major brands to offer custom advertising solutions. Enhanced commercial terms and a broader scope with advertising partners have also contributed to this increase in ad revenue.
In a strategic move, August saw the launch of the "Anghami Gold" premium subscription tier, featuring advanced features and AI-driven music and podcast experiences. The platform further solidified its position by strengthening its major telco partnership with Vodafone Egypt in October, a move expected to double potential revenue.
Strategically, Anghami has secured significant investments, with Saudi media giant SRMG investing $5 million in August at a share price of $2.50. This investment is aimed at propelling Anghami's growth and leveraging its expertise.
Eddy Maroun, co-founder and CEO of Anghami, remarked on the quarter as a pivotal period for the company, both strategically and financially. With the backing of key investors like OSN Group and SRMG, Anghami has marked a critical point in its expansion trajectory.
Maroun highlighted the company's focus on high-margin segments, which aligns with its strategic direction. The upcoming integration of video streaming capabilities is expected to significantly enhance the platform and diversify its service offerings.
Founded in Lebanon in 2012 by entrepreneurs Eddy Maroun and Elie Habib, Anghami has the distinction of being the first music-streaming platform in the MENA region. The company enjoys the support of SRMG Ventures, the venture capital wing of the Saudi Research and Media Group (SRMG).
Recently, Anghami has been expanding its business scope. This includes venturing into artificial intelligence in May with the launch of its AI-Powered Personalized Podcast and AI Newsroom. The company has also made key strategic moves, such as acquiring the events and concerts company Spotlight in June 2022 and forming alliances with notable names like Sony Music Middle East, the mobile game PUBG and Rotana Music, supported by Warner Music Group.