Music company based in Paris Trust generate annual sales of €760.8 million by 2022.
That revenue is converted into 800 million USD (at the average annual exchange rate according to the IRS).
The company’s full-year financial results (second set of full-year results since floating on Paris Euronext in 2021) was published on Wednesday, (March 15).
According to Believe, its annual revenue has increased by 183.6 million euros, from 577.2 million euros in 2021, reflecting the increase of 31.8% By year.
Believe’s operation in 2022 marks a remarkable growth compared to the previous year, when the company increase its revenue by €135.8 million (30.7%) YoY, from €441.4 million in 2020.
These fiscal 2022 results beat the company’s own full-year forecast for 2022, which doubled last year. Company speak in November that they expected revenue for the 12 months through December 2022 to grow at least 30% (previously predicted to be 29%+).
The company’s revenue in 2022 exceeded the milestone €750 million the first major milestone in its history.
Believe divides its global operations into two divisions:
- (i) DIY Distributor TuneCore (called ‘Automatic Solution’ in its results), as well as
- (ii) performance of core premium label and artist services operations (referred to as ‘Premium Solutions’)
The company’s ‘Premium Solutions’ sales increase 31.6% YoY, from €541.3 million in 2021 to €712.6 million in 2022 (see below).
Believe sales from ‘Automatic Solutions’ increased 34.5% YoY, from 35.8 million euros in 2021, to €48.2 million in 2022.
A deeper dive into Believe’s full-year results for 2022 reveals that the company’s Digital revenue, representing 92.3% in its total revenue (compared to 90.9% in 2021) increased 34.7% annual.
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Believe says its non-digital revenue is up 7.6% during the year, driven mainly by revenue growth in sales, live streaming and branding, which the company said offset the drop in actual sales.
The Group’s adjusted EBITDA (earnings before interest, taxes and amortization) is €34.7 million in 2022 (corresponding to a 4.6% margin versus 4.0% in 2021). .
Believe’s 2022 results were announced a month after it was reported that it over 1 billion euros on digital music sales (DMS) for 2022. Believe states that DMS is revenue generated from digital store partners and social media platforms before royalties are paid to artists. artist and firm.
The company added in its earnings announcement that its business model has “proven appeal to artists and brands in all markets” in 2022 and is “illustrated”. by the geographical diversity of the large number of artists and brands participating in Believe”.
Believe reports that the number of artists served directly (perhaps through TuneCore) or through the broader Group’s label (through label/artist service activities) which added approximately 200,000 artists to reach the approx. 1.3 million won artists in 2022.
Breaking Believe results by region show that in 2022, Asia Pacific and Africa combined have revenue growth of 52.7% to 199.3 million euros, accounting for 26.2% of the group’s revenue (compared to 22.6% in the financial year’21).
Believe notes that “market dynamics remained strong throughout the year although ad-sponsored streaming revenue growth has slowed since June 2022, which has impacted operations. movement of the region”.
In addition, Believe says that the expansion offers ‘premium services’ and ‘investments’ in India Think about music and is based in the Philippines VMAG “Enabled strong growth in India and Southeast Asia, while the Group accelerated growth in Mainland China during the year.”
In France, Believe sales increased 34% in 2022 to €128.6 million. The market accounted for 16.9% of the company’s revenue.
Believe notes that it “has increased its appeal to a wider range of musical genres” in France, thanks to a strategic partnership with play two and Jo&Co, according to the statement, “contributed to driving revenue growth” in 2022.
In the Americas, Believe has increased its sales by 30.7% ARRIVE €109.2 million in 2022, accounting for 14.3% of the company’s total revenue.
Believe also says that they benefit from the strength of their business in Brazil.
In Europe (excluding France and Germany) Believe recorded sales increased 27.6% to €210.2 million and account for 27.6% of total revenue in 2022 (compared to 28.5% in 2021 reflecting what they say is “reducing the weight” of the business in Russia).
Elsewhere in Europe, Believe says it “remains on a strong growth trajectory in the UK, Southern Europe and Eastern Europe, while activity levels are maintained in Italy”.
Revenue in the region was impacted due to lower revenue growth in Turkey (due to market currency effects) and in Russia (accounting for approximately 7.5% of the Group’s revenue in fiscal year 2022). ).
In Germany, sales increased 11.0% next year €113.6 million in 2022 and represent 14.9% Believe revenue.
“We aim to be the best music company in developing artists and labels in the digital ecosystem. Every day my belief that Believe is the best position for success gets stronger.”
Denis Ladegaillerie, Believe
“We ended 2022 on a strong note by delivering on our IPO commitments both operationally and financially in the second year,” said Denis Ladegaillerie, Believe Founder and CEO. consecutive.
“In 2022, as we have done every year since 2005, we did what we said we would do… or better. We have increased our market share; we have improved profitability; we have generated substantial cash flow from our operations. Every day, the music market becomes more digital, and our distinct positioning and competitive advantage in the digital world becomes more apparent to our artists and partners.
Ladegaillerie added: “The quality of service our teams provide by leveraging their passion for music, digital expertise and technology solutions contributes to the success of many local labels. and artists around the world at every stage of their careers.
“In 2023, we will continue our profitable growth strategy: investing in our teams to increase market share, innovating audience development products for our artists and brands, and while improving operational efficiency through technology and scale to increase profitability. We aim to be the best music company in developing artists and labels in the digital ecosystem. Every day my belief that Believe is the best position for success gets stronger.”Global Music Business
