Believe: significant profitability improvement and solid organic
growth despite currency impacts in H1’24
Significant profitability improvement and
solid organic growth despite currency impacts in H1’24
Paris, France – August 1, 2024
H1 2024 Key Figures1
- Revenues of €474.1 million in H1’24, up +14.1% at current rate
with an organic growth of +12.3% including currency headwinds
embedded in Premium Solutions digital sales.
Adjusted2 organic growth amounted to +15.4% in
H1’24.
- Strong growth in France (+17.9%), Europe excl. France &
Germany (+24.7%) and Americas (+21.8%), and softer growth in
Asia/Oceana/Africa (+3.7%), which was affected by soft ad-supported
revenues and FX (although the long-term tailwinds in Asia remain
compelling). Germany (which continues to be actively managed away
from physical distribution contracts and towards digital
distribution) still penalizing revenue growth, which would have
amounted to +16.4% excluding the country.
- Digital sales grew at a slower pace in Q2’24 on an organic
basis compared with Q1’24, reflecting softer market growth and more
limited market share gains.
- Strong increase in Adjusted EBITDA at €31.3 million, up + 29.3%
versus H1’23 or a margin of 6.6%, up +80bps YoY reflecting focus on
value optimization, control on investments and operating
leverage.
- Increase in advances paid to labels and artists was less
prominent than in H1'23, leading to improved free cash flow dynamic
(negative €19.4 million in H1’24 compared with negative of €32.9
million in H1’23). Net cash at the end of June’24 was
€183.6million.
H1 2024
Highlights
- Completion of the simplified tender offer initiated by Upbeat
Bidco (consortium composed of funds managed by TCV, EQT X and Denis
Ladegaillerie) which now holds 96.02% of the share capital and
94.87% of the voting rights.
- Successful focus on key music genres with a confirmed
leadership in rap music and recent developments in electronic and
dance music, notably with the strategic partnership with
Romanian-based Global Records.
- Continued investment in Asia to expand presence across multiple
local markets and address strategic local music genres in the
region.
- Further build-up of the best offer for self-releasing artists
through the offering of top-notch marketing programs and
self-served publishing services.
2024 Outlook
- Adjusted EBITDA margin was ahead of expectations in H1’24
reflecting controlled investments, successful efficiency plans and
focus on value optimization. The Group will pursue this strategy in
H2’24 and is now expecting an Adjusted EBITDA margin higher than
6.5% (versus c. 6.5% initially anticipated).
- Believe also confirms a slightly positive free cash flow in
FY’24.
- Organic growth was in line with expectations in Q1’24 but did
not accelerate in Q2’24 as rapidly as anticipated. In addition,
Believe is now expecting the positive effect of Q4’23 price
increases at large DSPs to fade away in H2’24, when comparing year
on year revenue growth.
- As a result, Believe reviewed its growth scenario for H2’24 and
retained a conservative approach. Paid streaming increase continues
to be very resilient, but will not be uplifted by significant price
increases in the second half of the year. Ad-funded streaming
growth is assumed to remain stable in H2’24 versus H1’24. While
Believe expects to continue to gain market share in H2’24, it is
unlikely to be able to fully mitigate the effect of the slightly
softer than expected market growth outlook in H2’24 (driven by
weaker ad-funded and no additional DSP price increases). Currency
headwinds embedded in the market are still expected to be down c.
-2% year-over-year. Based on those assumptions, Believe now
expects organic growth of c. +12 (versus c. +18% initially).
Adjusted organic growth for embedded market FX of c. + 14% (versus
c. +20% initially).
Denis Ladegaillerie, Founder and
CEO said: “Despite persistent market
headwinds in some of our key territories, Believe continued to
generate solid profitable growth during the semester. We pursued
our strategic roadmap to build the best artist development company
in the music industry, while finalizing the restructuring of our
capital structure providing us with greater financial flexibility
and partners who can accelerate our profitable growth story.
Believe is in good stead for the next phase of growth and industry
consolidation.”
H1 2024 KEY FIGURES
in
€million |
H1 2023 |
H1 2024 |
Change
YoY |
Organic change |
Group Revenues |
415.4 |
474.1 |
+ 14.1% |
+ 12.3% |
Premium Solutions |
388.5 |
440.9 |
+ 13.5% |
+ 11.7% |
Automated Solutions |
26.9 |
33.2 |
+ 23.4% |
+ 20.5% |
Adjusted EBITDA pre-Central
Platform |
61.7 |
73.4 |
+18.9% |
|
in % of
revenues |
14.9% |
15.5% |
60bps |
|
Premium Solutions |
57.2 |
65.2 |
+14.0% |
|
Automated Solutions |
4.5 |
8.2 |
+81.8% |
|
Central Platform |
(37.5) |
(42.1) |
+12.2% |
|
Group's Adjusted
EBITDA |
24.2 |
31.3 |
+29.3% |
|
in % of revenues |
5.8% |
6.6% |
80bps |
|
Operating income / loss (EBIT) |
1.0 |
(7.0) |
|
|
Net cash from operating activities |
(27.2) |
(13.1) |
|
|
Free cash flow |
(32.9) |
(19.4) |
|
|
Net cash and cash
equivalents |
210.2 |
183.6 |
|
|
H1 2024 HIGHLIGHTS
The simplified public tender offer initiated by
Upbeat Bidco, the consortium formed by funds managed by TCV, EQT X
and Denis Ladegaillerie was completed on June 21. At the time of
this release, the consortium holds 96.02% of the share capital.
With a free float just below 4% and ongoing coverage cessation, the
Group has decided to review its financial communication agenda.
Going forward, Believe will publish interim and full year results,
and no longer release quarterly revenues.
Adjusted organic revenue growth of
+15.4% in H1’24, a solid performance despite growth not
accelerating as expected at the end of the semester
After a solid start to the year, revenue growth
did not accelerate at the end of H1’24 as previously anticipated.
The market growth was softer in Q2’24 than in Q1’24 and remained
penalized by negative embedded market FX notwithstanding a slight
improvement during the quarter.
Paid streaming trends were solid and still
enhanced by price increases by several large digital platforms in
Q4’23. Ad-funded streaming monetization remained weak, notably in
Asia. The expected recovery at the end of Q2’24 did not happen,
leading the Group to a more cautious view on ad-funded streaming
for the rest of the year.
In H1'24, revenues grew by +14.1% to reach
€474.1 million, reflecting an organic growth of +12.3%, a positive
perimeter effect related to the Sentric acquisition in March’23
(€10 million in revenue recorded in Q1’24 or 2.4% to revenue growth
in H1’24) and a negative forex impact (-0.6%). Revenue remained
affected by embedded currency headwinds in H1’24 as the Group
anticipated (-3.1%), but the negative effect decelerated in Q2
versus Q1. Adjusted organic growth reached +15.4%.
A solid performance of the roster in a
wider variety of genres
Believe further grew its revenues in H1’24 reflecting a solid
performance of the existing roster of artists and labels. Over the
course of H1’24, the Group remained at the forefront of audience
development, fostering digital monetization in an ever-growing
number of digital music genres.
Believe once again confirmed its leadership in
France in new releases and its success in sustainably developing
artists in H1’24 as illustrated by the recently released SNEP data.
Believe ranked #1 on Streaming Top Albums and Top Singles, for the
1st time. Its market share is particularly high on local acts, with
40% of local top singles and 30% on local top albums (physical +
digital). In addition, Believe had 5 best-selling artists in the
Top 10 in H1’24, proving its unique capacity to develop multiple
artists in several genres at the very top of the market.
With the Group’s support, several French rap
artists reached new heights in Q2’24, including KeBlack, Heuss
l’Enfoiré, Uzi or Carbonne among others. Believe also saw
equivalent success in Brazil with G.A. and Grego, two local hip hop
/ trap artists. The Group also succeeded in developing several Pop
artists in Europe and Asia and helped them become top charting
artists, including among others the UK band Sea Girls, the
Australian band Royal Otis, Harvi, NIrvair Pannu and Fahean
Abdullah in India as well as several Indonesian artists with the
launch of the new imprint dedicated to the Java Pop music genre.
Believe also supported the development of Sevdaliza, an
Iranian-Dutch electro artist which has been upsell from TuneCore to
Premium Solutions, whose recent Ride or Die part 2 track
entered the Spotify Daily Top 50 in 19 countries, of
which 11 in top 10 position and whose track Alibi
generated more than 67 million streams in two weeks.
Building strong market position in
digital friendly music genres: further progress in electronic and
dance music with the acquisition of Global Records
Since 2023, the Group is expanding its position in electronic and
dance music with the launch of two global dance/electronic music
labels, b.electronic and All Night Long. This increased Believe’s
commercial appeal in those music genres and enabled the Group to
develop both labels and artists digitally. Aligned with its
blueprint strategy to first grow organically then implement
partnerships with entrepreneurial labels to accelerate growth,
Believe signed a strategic partnership with Global Records, Central
and Eastern Europe’s top independent dance music company, and
committed to take a 25% stake in its capital.
The objective is to accelerate Global Records’
growth by bringing together Believe’s successful track record of
developing digital-friendly music genres across multiple
territories and unrivaled capacity to scale and grow local
businesses, and Global Records’ powerful full-service model and
A&R capacities in dance music. Global Records is a music first
company that has built a solid reputation as a hitmaker in dance
music. In 2023 only, it cumulated over 6 billion streams across all
platforms and over 20 billion streams for its global catalogue.
Pursuing investment in Asia to
strengthen its regional footprint and foster future growth
opportunities despite softer market conditions experienced across
the region outside China and Japan
Believe pursued its investment in Greater China and reinforced the
local top management to prepare for the next phase of growth. Now
the world’s fifth music market, Greater China recorded the fastest
rates of revenue growth in 2023, with a relatively low penetration
of paid music subscribers. Looking ahead, the streaming market in
China is expected to grow by more than 120% by 2030 (according to
Midia estimates), boosting the rise of digital-friendly music
genres like hip-hop and the emergence of top-charting artists. The
local top management is responsible for defining and leading the
most adapted revenue growth strategies, growing the roster of local
artists and labels and further building up relationships with local
digital services.
Believe also launched Krumulo, a new imprint in
Indonesia dedicated to Java Pop, one of the most popular local
genres with the objective to be the top-of-mind artist services
brand for Java Pop artists. The imprint will provide an adaptive,
personalized and comprehensive marketing and promotion strategy
across various touchpoints and help them to expand their reach to
nation-wide engagement.
Further building up the best offer for
self-releasing artists
As of June’24, self-releasing artists on TuneCore earned more than
$4 billion since the company’s founding in 2006, with $1 billion
paid out since December’22. The automated platform was aided by the
deals with DSPs negotiated by Believe, the expansion of publishing
activities since Sentric’s acquisition (March’23) and the launch of
the TuneCore Accelerator marketing program in December’23. The new
marketing program helped artists get their music in front of more
listeners and enabled TuneCore to be once again recognized as one
of Fast Company’s most innovative companies. TuneCore maintained
its focus on building the most complete suite of products to
support the development of self-releasing artists. Under this
objective, the TuneCore Mastering tool, which is designed to help
artists improve the sound quality of their recordings before
release, was added at the end of Q2’24.
H1’24 FINANCIALS
Premium Solutions and Automated
Solutions both driving revenue growth in H1’24
Digital Music Sales3 (DMS) amounted to €636.9million in
H1’24, up +9.0% year-over-year, with Premium Solutions again
recording a double-digit growth and a solid performance in
Automated Solutions.
In H1’24, Premium Solutions, revenues amounted
to €440.9 million, up c. +13.5% at current rate, mostly reflecting
an organic growth of +11.7% and a positive perimeter effect of
+2.3% related to the acquisition of Sentric (completed in
March’23). Adjusted organic growth was +15.1% in H1’24. Addressable
markets were softer in Q2’24 versus Q1’24, resulting in lower
organic growth for Believe, but this was mitigated by an
improvement in the estimated embedded market FX effect (-2.7% in
Q2’24 versus -4.0% in Q1’24).
Paid streaming trends remained solid throughout
the semester, while ad-funded streaming activities remained subdued
notably in Asia and did not recover at the end of Q2’24 as
initially anticipated by the Group. Believe continued gaining
market share in H1’24, but they were more limited in Q2’24 compared
with previous quarters.
Automated Solutions revenues amounted to €33.2
million up by +23.4% in H1’24, reflecting +18.2% in Q1’24 and
+28.0% in Q2’24. Digital sales showed improvement throughout the
semester and recorded a solid growth acceleration in Q2’24.
Non-digital sales were significantly up compared with last year,
driven by the integration of Sentric self-served activities and a
positive one-off in publishing activities (TuneCore was already
providing publishing services before the acquisition). Automated
Solutions growth was also supported by its new marketing advanced
program (TuneCore Accelerator program), which is boosting its
performance notably on Spotify.
Strong growth in France, the Americas
and Europe excluding France and Germany
in
€ million |
H1 2023 |
H1 2024 |
Change YoY |
Europe excl.
France and Germany |
121.9 |
152.0 |
+ 24.7% |
Americas |
60.6 |
73.9 |
+ 21.8% |
France |
66.5 |
78.4 |
+ 17.9% |
Asia / Oceania
/ Africa |
112.2 |
116.3 |
+ 3.7% |
Germany |
54.1 |
53.5 |
- 1.2% |
Total |
415.4 |
474.1 |
+ 14.1% |
Sentric revenues are now split by region thanks
to greater integration in the Group’s systems, while they were
previously accounted for in Europe excl. France and Germany. This
was completed in Q2’24 and most of revenues were reallocated to the
US.
Revenue growth amounted to +24.7% in
Europe (excluding France and Germany) and
represented 32.1% of total revenues in H1’24. Believe recorded
strong growth across Eastern Europe and in Spain, while the
activity remained solid in Italy. Revenues in Turkey significantly
increased throughout the semester. The performance in the UK was
penalized by the reallocation of Sentric revenues to the US which
was done in Q2’24 and therefore hampered the comparison basis with
Q2’23 as all Sentric revenues were then allocated in this market.
Americas grew by
+21.8% and represented 15.6% of Group revenues in H1’24. The
performance in Q2’24 was uplifted by the reallocation of Sentric
revenues to the US. The level of activity was strong in Mexico,
while Brazil recorded a slowdown in its revenue growth. TuneCore
achieved a solid level of revenues thanks to its powerhouse
marketing program TuneCore Accelerator, while also recording strong
growth of its publishing activities, which included a positive
one-off related to the acquisition of Sentric.
In France, revenues
increased by +17.9% in H1’24 and represented 16.5 % of Group
revenues. Digital revenues continued recording double-digit growth
throughout the semester, but the growth rate stalled momentarily
down in April. The Group confirmed its leadership for local acts in
France notably in the rap music genre. Non-digital sales were also
very dynamic, driven by live and branding activities. Given the
market position and the size of Artist Services, non-digital
revenues h ave become significant as Believe offers a complete
range of services to the top local artists that it serves.
In H1’24, revenue growth reached +3.7%
in Asia Pacific and Africa, which
represented 24.5% of Group revenues. After a slow start to the year
(as a result of weaker ad-funded streaming market), the Group
returned to revenue growth in Q2’24. The level of activity in
Greater China and Japan, where the Group is currently building up
its position was strong throughout the semester. Revenues were up
slightly in India and down in several Southeast Asian markets, as
the two regions are more dependent on ad-funded streaming. In
addition, Believe’s market position in several Southeast Asian
markets mitigated its capacity to generate additional market share
gains.
In Germany, revenues
were down -1.2% in H1’24 and represented 11.3% of Group revenues.
After declining in Q1’24, revenues stabilized in Q2’24. Digital
sales were slightly up in Q1’24 and further progressed in Q2’24,
confirming their positive trajectory thanks to the strong
positioning on local acts and the ongoing diversification of music
genres in the roster. Non-digital sales continued to decline
throughout the semester on the back of Believe’s proactive decision
to accelerate its exit from contracts that were too heavily reliant
on physical sales and merchandising, which should reset the
business to a stronger base for future growth and margins.
Strong increase in Adjusted EBITDA
margin illustrating control on investments and operating
leverage
Believe adapted its investment pace to the
growth level and focused on further optimizing value, improving
efficiency and deploying automation in H1’24. The Group continued
investing in local teams to fuel its future revenue growth. Hence
Believe reduced its pace of investment in local teams in H1’24,
while launching its Be Odyssey program, which aims at
further optimizing technological capabilities of the Central
Platform and required increased spending dedicated to Tech and
Product.
Adjusted EBITDA pre-Central Platform
costs4 grew by +18.9% in H1’24 to reach €73.4
million (versus €61.7 million in H1’23). Believe pursued its
investment strategy in H1’24 to support its profitable growth plan.
The Group deployed additional sourcing and servicing capabilities
in Premium Solutions, while further rolling out its new marketing
program TuneCore Accelerator and accelerating the development of
self-served publishing activities. The Group was however focused on
controlling its investment in local teams in H1’24. As a result,
the Adjusted EBITDA margin pre-Central Platform further progressed
and reached 15.5% in H1’24, an increase of 60bps compared with
H1’23 (14.9%). This margin included growth investments in both
segments including Sentric, which represented 3.1% of total
revenues in H1’24.
Central Platform costs (€42.1
million in H1’24 versus €37.5 million in H1’23) increased by +12.2%
year-over-year and remained stable over revenue versus last year
(8.9% in H1’24 compared with 9.0% in H1’23). Believe continued
implementing efficiency plans to optimize its investments in the
Central Platform and also launched in H1’24 its Be Odyssey
program to prepare for the next phase of growth and scale increase.
As a result, Tech & Product costs significantly increased in
H1’24. Sales & Marketing costs progressed more in line with
revenue growth, while General & Administrative spending
declined for the first year since the IPO. Notwithstanding the
increase in Tech & Product, Central Platform costs remained
stable as a percentage of revenue.
As for previous years, some Central Platform
investments are capitalized under IFRS accounting principles. In
H1’24, total investment (P&L and capitalized costs) in the
Central Platform amounted to €48.9 million. Total investment went
up +8.0% year-over-year and represented 10.3% of total Group
revenues compared with 10.9% in H1’23, or a decrease of 60bps.
The Group’s Adjusted EBITDA
grew by +29.3% year-over-year to reach €31.3 million compared with
€24.2 million in H1’23. Adjusted EBITDA margin stood at 6.6% in
H1’24 compared with 5.8% in H1’23 thanks to the Adjusted EBITDA
margin increase at the segment level and better operating leverage
achieved in Central Platform. The Group therefore is progressing in
delivering operating leverage and approaching the high-end of the
mid-term objective level (Group adjusted EBITDA margin of 5% to 7%
by 2025).
Operating income (EBIT) reflecting
higher D&A versus last year and costs related to the Offer
process
Depreciation & Amortization amounted to €24.8 million in H1’24,
up +17.2% compared with H1’23 (€21.2 million), reflecting the
resumption of the external growth strategy since Q1’23 as it is the
first driver of the past D&A increases reported by the Group.
The Group recorded €7.3 million in other operating expenses largely
driven by costs related to the offer initiated by the consortium.
This was a steep change compared with last year as the Group
recorded a positive other income of €2.0 million in H1’23. As a
result, EBIT was negative €7.0 million.
Free cash flow reflecting commercial
dynamism. Solid cash level at the end of June’24
Working capital variation was negative by €34.3 million, reflecting
higher artist and label advances that grew by €25.5 million
compared with the end of December’23. In H1’24, the Group had the
opportunity to further deepen its relationships with its existing
roster and to attract additional Tier1 labels. Signing activity
was, however, hampered by the offer process and the associated
unsolicited approach the Group faced. As anticipated by the Group,
there were some renewals of large Tier1 labels on better and longer
terms in H1’24, but this trend was not confirmed in H2’24.
Free cash flow was negative by €19.4 million in
H1’24 reflecting negative working capital variation. Capex amounted
to €15.3 million and represented 3.2% of Group revenue, compared
with €18.4 million or 4.4% of Group revenue in H1’23, and were
mostly capitalized costs.
Cash on the balance sheet amounted to €183.6
million at the end of June’24 compared with €210.2 million at the
end of June’23 and €214.2 million at the end of December’23, mostly
higher artist and label advances and capex compared with last
year.
The Group will continue to manage its cash and
to allocate between advances and acquisitions, seeking
opportunities with greater return and better contribution to the
profitable growth strategy that Believe is pursuing.
FY 2024 OUTLOOK
In FY’24, the Group will continue to drive a
profitable growth trajectory towards its long-term profitability
objective of 15% Adjusted EBITDA margin.
Adjusted EBITDA margin was ahead of expectations
in H1’24, thanks to continued operating leverage (controlled
investments, successful efficiency plans and focus on value
optimization). The Group will pursue this strategy in H2’24 and now
anticipates an Adjusted EBITDA margin of at least 6.5% (versus c.
6.5% initially). Believe will further focus on value optimization
in H2’24. The Group will also continue to adapt the investment
cycle to market growth and to optimize investments in the Central
Platform and increase efficiency through automatization.
Organic growth was in line with expectations in
Q1’24 but did not accelerate in Q2’24 as rapidly as anticipated.
Besides, Believe is now expecting the positive effect of Q4’23
price increases of large DSPs to fade away in H2’24. As a result,
Believe now retains a conservative approach for its growth scenario
for H2’24. Paid streaming increase remains very resilient but will
not be uplifted by significant price increases in H2’24. Ad-funded
streaming growth is assumed stable in H2’24 versus H1’24. This will
not be fully mitigated by the expected additional market share
gains. Currency headwinds embedded in the market are still expected
to be down c. -2% year-over-year. Based on those assumptions,
Believe now expects organic growth of c. +12% (versus c. +18%
initially). Adjusted organic growth for embedded market FX of c. +
14-16% (versus c. +20% initially).
Believe also confirms it will deliver a slightly
positive free cash flow in FY’24. The Group will continue to
allocate cash between advances and acquisitions in the months
ahead. Believe’s reinforced appeal to a greater number of artists
and labels in a wider variety of music genres and the ongoing
industry consolidation provide more attractive opportunities for
the Group, which will therefore allocate more cash to internal and
external investments going forward.
The interim earnings report is available on our investor
website: Financials | Believe
Next earnings release of Believe (Ticker: BLV, ISIN:
FR0014003FE9):
13 March 2025: FY 2024 earnings – Press release to be issued
after market close.
Investor
Relations & Financial Media
Emilie MEGEL
investors@believe.com
Cell: + 33 6 07 09 98
60 |
Press
Relations
Manon JESSUA
manon.jessua@believe.com
Maria DA SILVA
maria.da-silva@agenceproches.com
Cell: +33 7 60 70 23 16 |
Appendix
1. Use of Alternative Performance
Indicators
To supplement our financial information
presented in accordance with IFRS, we use the following non-IFRS
financial measures:
- DMS is the revenue generated from digital store partners
and social media platforms before royalty payment to artists and
labels.
- Organic growth accounts for revenue growth at a
like-for-like perimeter and at constant exchange rate.
- Adjusted EBITDA is calculated based on operating income
(loss) before (i) depreciation, amortization and impairment, (ii)
share-based payments (IFRS 2) including social security
contributions and employer contributions (iii) other operating
income and expense; and (iv) depreciation of assets identified at
the acquisition date net of deferred taxes from the share of net
income (loss) of equity-accounted companies.
- Free cash flow corresponds to net cash flows from operating
activities, after taking into account acquisitions and disposals of
intangible assets and property, plant and equipment, and restated
for (i) costs related to acquisitions, (ii) acquisition costs of a
group of assets, that does not meet the definition of a business
combination and (iii) advances related to distribution contracts
intended specifically for the acquisition of assets (acquisition of
companies, catalogs, etc).
2. Quarterly revenue by division
in € million |
Q1 2023 |
Q1 2024 |
Change |
Organic at constant rate |
Premium solutions |
186.0 |
215.3 |
+ 15.8% |
+ 12.6% |
Automated solutions |
12.7 |
14.9 |
+ 18.2% |
+ 10.8% |
Total revenues |
198.6 |
230.3 |
+ 15.9% |
+ 12.5% |
in € million |
Q2 2023 |
Q2 2024 |
Change |
Organic at constant rate |
Premium solutions |
202.5 |
225.6 |
+ 11.4% |
+ 10.8% |
Automated solutions |
14.3 |
18.3 |
+ 28.0% |
+ 29.0% |
Total revenues |
216.8 |
243.9 |
+ 12.5% |
+ 12.0% |
3. Q2 revenue by geography
in € million |
Q2 2023 |
Q2 2024 |
Change YoY |
Americas |
31.2 |
41.2 |
+ 31.8% |
France |
34.4 |
39.9 |
+ 15.8% |
Europe excl.
France and Germany |
67.5 |
75.2 |
+ 11.5% |
Asia / Oceania
/ Africa |
56.2 |
60.0 |
+ 6.8% |
Germany |
27.5 |
27.6 |
+ 0.1% |
Total |
216.8 |
243.9 |
+ 12.5% |
4. Revenue breakdown between digital and non-digital
sales (as reported)
|
Q1 2023 |
Q2 2023 |
H1 2023 |
Q1 2024 |
Q2 2024 |
H1 2024 |
Digital sales |
93% |
90% |
91% |
90% |
89% |
89% |
Non-digital sales |
7% |
10% |
9% |
10% |
11% |
11% |
5. Digital and non-digital sales growth (as
reported)
|
Q1 2024 |
Q2 2024 |
H1 2024 |
Digital sales |
+ 12.1% |
+ 11.2% |
+ 11.6% |
Non-digital sales |
+ 64.0% |
+ 24.3% |
+ 40.7% |
6. Premium Solutions revenue growth adjusted for
estimated embedded market FX effects
|
Q1 2024 |
Q2 2024 |
H1 2024 |
Digital sales |
+ 17.9% |
+ 13.6% |
+ 15.7% |
Non-digital sales |
+ 0.3% |
+ 13.5% |
+ 7.9% |
About Believe
Believe is one of the world’s leading digital music companies.
Believe’s mission is to develop independent artists and labels in
the digital world by providing them the solutions they need to grow
their audience at each stage of their career and development.
Believe’s passionate team of digital music experts around the world
leverages the Group’s global technology platform to advise artists
and labels, distribute and promote their music. Its 2,020 employees
in more than 50 countries aim to support independent artists and
labels with a unique digital expertise, respect, fairness and
transparency. Believe offers its various solutions through a
portfolio of brands including Believe, TuneCore, Nuclear Blast,
Naïve, Groove Attack, AllPoints, Ishtar and Byond. Believe is
listed on compartment B of the regulated market of Euronext Paris
(Ticker: BLV, ISIN: FR0014003FE9).www.believe.com
Forward Looking
statement
This press release contains forward-looking statements
regarding the prospects and growth strategies of Believe and its
subsidiaries (the “Group”). These statements include statements
relating to the Group’s intentions, strategies, growth prospects,
and trends in its results of operations, financial situation and
liquidity. Although such statements are based on data, assumptions
and estimates that the Group considers reasonable, they are subject
to numerous risks and uncertainties and actual results could differ
from those anticipated in such statements due to a variety of
factors, including those discussed in the Group’s filings with the
French Autorité des Marchés Financiers (AMF) which are available on
the website of Believe (www.believe.com). Prospective information
contained in this press release is given only as of the date
hereof. Other than as required by law, the Group expressly
disclaims any obligation to update its forward-looking statements
in light of new information or future developments. Some
of the financial information contained in this press release is not
IFRS (International Financial Reporting Standards) accounting
measures.
1 Alternative performance indicators are
presented, defined and reconciled with IFRS in appendices 1 of this
press release (page 9).
2 Adjusted organic growth aims at
providing a view on Believe’s organic revenue growth after
neutralizing embedded market forex impact: Believe assesses the
forex impact on each digital market served by the Group to estimate
the market forex embedded into its digital revenues collected from
its digital partners. Digital sales embed currency translation
effects as the amounts collected from Subscriptions and Ad-funded
by digital stores are in local currencies and perceived by Believe
mainly in euros.
3. Digital Music Sales or DMS is a non IFRS
measure defined in appendix 1.
4. The Adjusted EBITDA pre-central platform costs
consists in the Adjusted EBITDA of the Automated and Premium
Solutions segments before considering Central Platform costs.
Central Platform costs account for the costs that cannot be
allocated by segment.
- 2024-08-01-Believe-H1 2024 earnings-ENG
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