11.4.2025 13:59:18 CEST | Mdundo.com A/S | Interim information
Mdundo.com A/S, one of Africa's leading music services, today publishes its Q3 2024/25 quarterly statement, covering the period from January to March 2025.
Continued Strong Growth in Monthly Active Users
Mdundo reached 39.2 million monthly active users (MAUs) in March 2025, up from 34.5 million in March 2024, representing a 14% year-on-year growth. The company remains on track to achieve its target of 40 million MAUs by June 2025. The company has a persistent focus on the native web-based streaming app, that was launched outside of Africa in the beginning of the financial year and is now the only version available in western markets. The company expects to launch premium subscriptions through direct billing for this version within Q4.
The company continues to focus on hyper-local music genres, deepening engagement in East and West African markets. Genres such as Fuji, Highlife, Luo (Ohangla), Zilizopendwa/Rhumba, Singeli, Hausa, Kalenjin, and Katitu/Kamba are being prioritized as part of our content and engagement strategy.
Strategic Telco Partnerships Driving Subscription Reach
Mdundo exceeded its full-year partnership target, launching three new telco partnerships so far during the financial year. Notably, Mdundo entered its first francophone market through a strategic partnership with MTN Cameroon, offering Mdundo Premium to MTN's 13 million customers. This milestone expands Mdundo's reach across Africa and introduces the platform to a new linguistic and cultural demographic.
Mdundo's Premium subscription is now offered through eight telecom partners across the continent: MTN Ghana, MTN Nigeria, MTN Cameroon, Vodacom Tanzania, Vodacom South Africa, Airtel Nigeria, Glo Nigeria, and Safaricom Kenya, giving the company access to over 352 million telecom customers.
In March 2025, the company adjusted its revenue guidance due to ongoing billing issues affecting two major telecom channels, which together accounted for approximately 75% of subscription revenue in the 2024 calendar year. Efforts to resolve the matter are ongoing, though the timeline remains unclear. A successful outcome is expected to have a meaningful positive impact on subscription revenue growth.
Diversifying Payment and Subscription Channels
As part of Mdundo's strategy to broaden its revenue base and enhance overall business resilience the company has several ongoing activities, including:
Preparations to launch card payments for subscriptions outside Africa.
Entered a strategic partnership with Minipay wallet, allowing users to pay for and access Mdundo Premium directly through the Opera Mini browser.
Continued to explore additional mobile wallet integrations across African markets to improve payment accessibility.
Expecting growth in Advertising Revenue
The advertising revenue in Q3 was impacted by continued low advertising prices, consistent with the company's November 2024 announcement. However, the company expects an improvement in advertising sales from the period July to December 2024 to the period January to July 2025. The growth is driven by direct advertising sales increasing the number of clients and value per campaign. While advertising prices remain suppressed, the increased volume of campaigns and improved commercial activities are expected to drive stronger performance in the coming quarters.
Strategic Review Initiated to Explore Growth Opportunities
On 3 April 2025, Mdundo announced the initiation of a strategic review to explore opportunities for accelerating value creation and leveraging the Company's strong market position gained since the IPO in 2020. Deloitte Corporate Finance South Africa has been appointed as financial advisor to support this process, which may include options such as a change in ownership, strategic investment, or consolidation. While no specific outcome is guaranteed, the review reflects the Company's commitment to long-term growth and value creation following the significant user growth achieved since IPO.
Outlook 2024/2025: Revenue, EBITDA and User Guidance (updated on 2 April 2025):
EBITDA Expectation: DKK minus 4M to minus 5M, representing an improvement of DKK 1.4-2.4M from last financial year.
Revenue expectations: DKK 11-12M, on par with last financial year's revenue of DKK 11.9 (outlook changed from DKK 12-15M on 2 April 2025)
Monthly Active Users (MAU): 40M MAUs by June 2025, up from 35M at the end of last financial year.
Contacts
- Martin Nielsen, CEO, +4593944055, +254708911840, martin@mdundo.com
About Mdundo.com A/S
Mdundo is a leading music service for Africa with millions of people streaming and downloading music from our app and website every month. We aim to provide Africa's millions of internet users with easy access to music whilst contributing structure, legality, and income to the sector. More info: https://mdundo.com/
Mdundo.com A/S
Jagtvænget 2
2920 Charlottenlund
www.mdundo.com
Certified Adviser
HC Andersen Capital
Bredgade 23B, 2. sal,
1260 København K
+45 30 93 18 87
ca@hcandersencapital.dk
https://hcandersencapital.dk/
