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7.12.2023 12:01:39 CET | Mdundo.com A/S | Company Announcement
The African music service, Mdundo.com, has lowered its revenue expectations for the financial year 23/24 from the previously announced DKK 17 - 21 million to DKK 14 - 17 million. The new expectation represents a growth of 11-35% compared to the last financial year. EBITDA expectations are unchanged and the company emphasizes continued strong growth from paying subscribers.
Contains Inside Information
Company announcement 8
Challenging partnership agreement regarding sale of audio advertisements: The company entered into a reseller agreement with South African Ad-Dynamo in August 2023 to take over the sale of audio advertisements (previously managed internally). The agreement was, among other things, entered on the basis of Ad-Dynomo's experience with sales for Meta, X, Spotify, among other global platforms. A delayed and generally unsatisfactory execution of the agreement on Ad-Dynamo’s part has resulted in significantly lower results than expected. However, Mdundo.com's view of the earning potential and our unique advertising product in the African markets is unchanged, and the adjustment of expectations for the current financial year is mainly due to a timeline shift and not lower purchasing power or appetite for Mdundo's products among customers.
Unchanged EBITDA expectations: The company expects no change in the guided EBITDA. As previously communicated, the company aims to improve EBITDA by DKK 0.5 - 1.5 million compared to the last financial year with a target of DKK - 6.5 to - 7.5 million for the financial year 2023/24. The combination of lower revenue and unchanged EBITDA is, among other things, an expression of tight cost control and in general higher efficiency than expected.
Strong growth in earnings from paying users: We expect an increase in the share of revenue generated from paying subscribers. The strong growth in paying users for the previous two years is expected to continue from 35% of the revenue in the last financial year to approx. 50% of the revenue in this financial year. Mdundo recently went live with a new partnership with Kenya's largest telecommunications company Safaricom, which plays a role to support strong growth in earnings from paying users.
Monthly active user (MAU) expectations unchanged: The number of monthly active users at the end of Q1 was 29.1 million and is still expected to be 35 million at the end of the financial year 2023/24.
| 22/23 Result | June 2023 Guidance | December 2023 Guidance | |
| Revenue | DKK 12.6 million | DKK 17 - 12 million | DKK 14 - 17 million |
| EBITDA | DKK -8 million | DKK -6.5 - 7.5 million | DKK -6.5 - 7.5 million |
| Monthly Users | 26.6 million | 35 million | 35 million |
Contacts
- Jesper Vesten Drescher, Bestyrelsesformand/Chairman of the board, +4523229900, ir@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
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