Believe Music reports strong revenue growth of 17.9% in first half of 2023

Believe, a music company based in Paris, has released its financial results for the first half of 2023. The company made €415.4 million in total revenue, showing a growth of 17.9% compared to the previous year.

If we exclude the acquisitions made this year, Believe’s organic revenues grew by 17.5% year on year.

Believe’s two divisions are DIY distributor TuneCore and its core premium label and artist services operation. In the first half of 2023, TuneCore grew by 17.1% YoY to €26.9 million, while the artist services operation saw a growth of 18% YoY to €388.5 million.

Believe’s revenues also grew significantly in different regions. In Europe (excluding France and Germany), revenue increased by 23.9% to €121.9 million, representing 29.3% of the company’s total revenues. The UK showed strong growth, partly due to the integration of publishing platform Sentric, which Believe acquired earlier. The revenues in Asia Pacific and Africa grew by 23.6% YoY to €112.2 million, accounting for 27% of the total group’s revenues. In the Americas, revenue grew by 21.7% YoY, making up 14.6% of the group’s revenues. In France, revenue increased by 12% YoY and represented 16% of Believe’s revenues. Germany’s revenues increased by 0.5% in H1 and accounted for 13% of the group’s revenues.

Believe observed digital organic revenue growth of 18% YoY in the first half of 2023. However, in the second quarter, the growth rate was lower at 14% YoY due to currency headwinds from digital partners and moderate ad-supported monetization. Excluding these currency impacts, the digital organic growth in Q2 2023 would have been 20.5% YoY.

Believe reported an increase in Adjusted EBITDA for H1 2023 at €24.2 million, or a margin of 5.8%, up by 250 basis points YoY, reflecting efficiency, control on investments, and operating leverage.

At the end of June 2023, Believe had a net cash balance of €210.2 million, which gives them a strong position to pursue advances and acquisitions.

Denis Ladegaillerie, the Founder and CEO of Believe, expressed satisfaction with their H1 results. He highlighted the strong performance of their roster, thanks to their unique model and digital expertise, despite challenges like currency headwinds and lower ad-supported monetization. He also mentioned that they have been working on improving profitability and efficiency across the organization and have taken advantage of commercial opportunities to fuel long-term growth. Moreover, they have been exploring innovative AI and Generative AI partnerships, believing that these technologies will have a positive impact on the music industry and their business.

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