Mdundo.com A/S (NASDAQ First North Growth Markets: MDUNDO), Africa’s leading music service with 2.6m monthly active users in South Africa, announces its annual guidance for the fiscal year 2023-24, signaling a thrilling phase of expansion and success. With a strong focus on key markets, groundbreaking partnerships, and innovative value-driven initiatives, Mdundo.com is set to make significant strides in the music industry.
Financial Highlights:
- Impressive Growth in Monthly Active Users (MAUs): Mdundo.com aims to propel its MAUs to new heights, targeting a remarkable increase from 26 million in the previous financial year to an impressive 35 million by June 2024, representing a notable surge of 35%. Since its IPO in 2020, the platform has experienced an astounding seven-fold growth in MAUs, solidifying its position as a leading music service in Africa.
- Substantial Increase in Annual Revenue: Mdundo.com projects a substantial increase in annual revenue, with expectations ranging from ZAR 42 million to ZAR 57 million in the year ending June 2024. This reflects an average growth rate of 31% compared to the current financial year’s revenue expectations of ZAR 35 million to ZAR 45 million. The guidance reflects an expected 13-fold increase in yearly revenue since the IPO in 2020.
- EBITDA Improvement: Mdundo.com is determined to enhance its EBITDA performance significantly. The company foresees an improvement from an anticipated range of ZAR -19 million to -23 million in the previous financial year to a range of ZAR -18 million to -20 million. This represents an average increase of 11%, showcasing the company’s dedication to financial progress.
“We are thrilled to unveil our annual guidance for the fiscal year 2023-24,” said Martin Møller Nielsen, CEO at Mdundo.com. “Our focus on key markets, strategic partnerships, and user-centric initiatives has positioned us for exceptional growth and impact in the African music landscape. We are committed to connecting musicians, music enthusiasts, and industry partners while creating sustainable opportunities for the music industry in South Africa and beyond.”
Mdundo.com is a leading pan-african music service. The service has 24.5m monthly active users, hereof 2.6m are in Kenya, and the company has partnered with leading companies such as Vodacom, MTN and Airtel as well as Universal Music Group and Warner Music Group.
Partnering for Success in South Africa:
Mdundo.com has solidified its market position through strategic partnerships, leveraging the strengths of prominent industry players. Notably, the company entered into a partnership with MTN South Africa in November 2022, followed by a collaboration with Universal Music South Africa in July 2022. These partnerships have played a pivotal role in propelling Mdundo.com’s growth and widening its reach in the South African music market.
10,800 independent South African musicians has an Mdundo account
Mdundo.com has emerged as a platform that empowers African musicians, with 140,000 musicians from across Africa and 10,800 musicians from South Africa having an account with the service. The company recognizes the immense talent and creativity within the South African music scene and provides a platform for these artists to showcase their work to a broader audience.
Empowering the Low to Mid-End Mobile Device Users:
Mdundo.com recognizes the importance of making music easily and legally available to all segments of the population, including those with low to mid-end mobile devices and limited internet data consumption. The platform’s focus on optimizing music consumption for these users ensures an accessible and enjoyable music experience at low data cost. By catering to the unique needs of this segment, Mdundo.com democratizes music access and empowers a wider audience to engage with their favorite artists and genres.
Progress towards 2025 Strategy:
Mdundo.com remains firmly on track to achieve its ambitious 2025 strategy, which centers on reaching 50 million monthly active users and achieving a positive EBITDA operation.
● Focus on Nigeria, Kenya, Tanzania, Ghana, and South Africa: These key markets encompass a combined population of 422.21 million people, approximately 35% of Sub-Saharan Africa’s population. They offer substantial growth opportunities due to high internet penetration rates and robust economic development. In March 2023, these markets accounted for 16.6 million of Mdundo’s 24.5 million monthly active users, with the remaining 30% distributed across secondary focus markets.
● Focus on driving value per user through telco and premium products: Mdundo.com has established music packages in collaboration with prominent telecommunications providers, including Vodacom in Tanzania, Airtel in Nigeria, and MTN in Nigeria, Ghana, and South Africa. These partnerships collectively reach an extensive customer base of 185 million people, enabling Mdundo.com to address the low penetration of payment cards in Africa and deliver enhanced value to its users. The company has previously announced that revenue from these partnerships accounted for 33% of the total revenue in H1 2022-23, showing a 6x increase on the revenue line from the same period the previous year.
● Focus on delivering locally relevant service and content: Mdundo.com places a strong emphasis on providing locally relevant service and content, acknowledging the significance of cultural diversity and local preferences. The platform curates a diverse range of music from various genres and local artists, ensuring an engaging and relevant experience for its users. The company has previously announced that approximately 80% of all music consumed within the focus markets is African catalog and that the service is approaching 500,000 African songs directly uploaded to the service by +140,000 African creators.
About Mdundo.com:
Mdundo.com is Africa’s leading pan-African music service, dedicated to providing music easily and legally across Africa. With a vast library of African songs, curated playlists and a focus on low internet usage, Mdundo.com is redefining the way people discover, listen to, and engage with African music. The platform collaborates with leading South African advertising agencies, including OMG, and partners with record labels such as Africori, Content Connect Africa, Universal Music Group South Africa and Warner Music Group South Africa. Currently, over 140,000 artists have accounts with Mdundo.com hereof 10,800 South African, showcasing the platform’s commitment to supporting local talent and driving the South African music industry forward.