Deezer Reports 12.7% Revenue Growth Despite Drop in Subscriber Numbers
Deezer reported impressive revenue growth of 12.7% in 2024, reaching $586 million and exceeding the projected 10% annual growth. However, the streaming platform's total subscriber count decreased by 3% to 9.7 million users by year's end.
The company's strong performance was driven by strategic partnerships, including RTL+ and Meli+, along with price increases in its Direct segment. Operating losses improved significantly, dropping to $29.76 million from over $70 million in 2023.
Key Financial Highlights:
- France market revenue: $338.52 million (+8.6% YoY)
- Rest of World revenue: $247.72 million (+18.7% YoY)
- First-time positive free cash flow: $7.12 million
- Reduced non-recurring licensing charges: €10.1 million (down from €18.8 million in 2023)
CEO Alexis Lanternier called 2024 a "landmark year," highlighting the company's achievement of adjusted EBITDA break-even in the second half and positive free cash flow for the first time in Deezer's history. The company maintains a positive outlook for 2025, projecting continued positive adjusted EBITDA and free cash flow.
The improved financial position resulted from reduced adjusted EBITDA loss, enhanced working capital generation compared to 2023, and lower one-off items, including tax regularization impacts. Despite the slight decline in total subscribers, Deezer's focus on strategic partnerships and market expansion in France shows promising results for sustained growth.