Anghami Inc. (NASDAQ: ANGH), the leading streaming platform for music and entertainment in the Middle East and North Africa region, filed its annual report on April 30th, 2024, under Form 20-F for the fiscal year ending December 31, 2023 and announced unaudited preliminary results for Q1 2024, ending March 31, 2024.
Comparing Q1 2024 to Q1 2023:
- Premium Subscribers grew 18% reaching 1.87 million
- Total Revenues grew by 8%
- Gross Margin improved from 20% to 26%
Premium Subscriber Growth and Improved Margins, Driven by a Disciplined Focus on High Quality Revenue
Anghami remains the premier MENA-based music streaming platform for listeners who want to enjoy a vast catalog of both Arabic and International music.
Anghami has achieved significant top line improvements:
- Premium subscribers reached 1.87 million by March 31, 2024, an 18% increase compared to March 31, 2023
- Total revenues grew by 8%, mainly driven by 27% growth in subscription revenue
- Anghami optimized its user acquisition and focused on high-margin direct subscription channels (mobile app stores and web)
This was coupled with further improvement on the costs side including:
- Optimization of cost of sales, through the renegotiation of several key content agreements
- Continuous streamlining of the technology backend, leading to reduction in technology costs while improving performance and scalability
- Continuous expansion of AI capabilities to enhance user recommendation engine
As a result, Operating loss improved from $5.4 million to $2.7 million, reflecting progress towards profitability.
Key Strategic Milestones Set to Position Anghami as a Digital Media Streaming Powerhouse
- On April 1, 2024, Anghami successfully completed the landmark OSN+ transaction, in which OSN Group contributed to Anghami a cash investment of $38 million, the OSN+ brand, the OSN+ video streaming business and associated paid subscribers and associated recurring revenue. This transaction will transform Anghami into a digital entertainment powerhouse that seamlessly integrates both music and video streaming services.
- During March 2024, Anghami successfully managed and executed one of the most anticipated concerts with Arab Megastar Amr Diab in Abu Dhabi, UAE, generating substantial regional excitement and media buzz. The concert coincided with the release of an Anghami-exclusive album by Amr Diab, swiftly claiming the title of the year's biggest album release and dominating the music charts.
- Reiterating the achievements of 2023, Anghami accomplished several key strategic deals, including an investment from Saudi media leader SRMG, an expanded partnership with Rotana Music, and an expansion of the exclusivity agreement with Amr Diab (including four concerts in major cities across the MENA region).
Elie Habib, Co-founder, and Chief Executive Officer at Anghami, noted "2023 was a transformative year for Anghami. We repositioned our business to boost margins and profitability and expanded our services in the region. We anticipate significant potential revenue growth following the OSN+ transaction".
Challenges and Headwinds Faced in 2023 Have Delayed Key Opportunities to 2024
Anghami’s 2023 financial performance was directly affected by the devaluation of the Egyptian currency. This was partially offset by the strong growth in premium subscribers in Egypt, a key market in the MENA region.
In addition, the Gaza war significantly disrupted advertising activities and live events in Q4 2023, resulting in the postponement of several key projects and events until 2024.
Despite these challenges, Anghami’s core subscription business continues to deliver growth in number of subscribers, supported by the rapidly growing advertising and production segments that have delivered impressive results overcoming multiple challenges and headwinds in 2023. In addition, the substantial improvement in gross margins and the enhanced quality of revenues, position Anghami for a strong performance in 2024, as evidenced by Q1 2024 results.
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