Home » 14 October 2019 » Shazam shows growth after being acquired by Apple, logs £124 mn profit in 2018

Shazam shows growth after being acquired by Apple, logs £124 mn profit in 2018

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Shazam recently released their financial report for the year ending 2018. The report revealed that after a period of losses, the company has been seeing growth this financial year.

In 2018, the music recognition platform was acquired by Apple for $400 million, the same year (ending December), the company, accounted for £124 million profit for the same financial year. This was an increase from the previous year (ending December), where Shazam accounted for £17.7 million for the financial year.

 

Shazam FY/2018

 

Also, the revenue for Shazam’s ‘Disposal of Intangible Assets,’ stood at £157.7 million.

Thus, the report disclosed,

“Revenue of £156.6m ($191) relates to the proceeds from the sale of intellectual property net of cost of disposal in the period ending 31 December 2018 and revenue of £1.1m ($1.3m) relates to the value attributed to the workforce of Shazam Media Services Inc. which was acquired by Apple Inc. on 26 November 2018 (period ending 31 December 2017).”

 

2018 also proved better for Shazam, as compared to 2017 in terms of active users. Shazam had 400 million active users in 2017, the next year, platform witnessed an increase of 78 million.

The company in their report also disclosed the ‘Company statement of changes in equity for FY/2018 in comparison with FY/2017.

The total equity balance as of 1 January 2017 was £689 million. By the end of the year, it went down to £561 million. By the end of 2018, the total equity stood at £131 million. Simultaneously, the profit and loss account for the same duration was £125 million.

Shazam in this financial report also disclosed the non-recurring/ exceptional costs of £1.8 million relating to acquisition costs being included in the income statement period ending 31st December 2018.

The financial statements of the company were prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102.

 

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Aakanksha Sharma

Author: Aakanksha Sharma

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