Photo Credit: Believe CEO Denis Ladegaillerie by Anis Martin
Believe’s FY 2024 figures show an absence of new price increases at DSPs caused a ‘negative impact,’ but overall revenues and profitability are up.
Despite the impact caused by a lack of new price increases at DSPs in 2024, Believe saw significant profitability and solid organic growth over the year. Revenues were in line with company guidance at 988.8 million euros ($1.073 billion), up more than 12% with an organic growth of over 11.5%, including currency headwinds embedded in premium solutions digital sales.
The company saw strong growth in Europe (excluding its native France and Germany) at over 23.3%, and in the Americas by 18%. Softer growth was shown in Asia/Pacific/Africa (3.5%), which was affected by soft ad-funded revenues — although the long-term tailwinds in Asia remain compelling. France saw an increase of 10.3%, remaining strong despite an adverse Q4 for non-digital sales. Germany was also slightly up, notwithstanding active management to move away from physical distribution.
Digital sales recorded solid growth, reflecting resilient paid-streaming development and market share gains. These were mitigated by the absence of recovery in ad-funded streaming in emerging markets and continued negative embedded market FX.
Photo Credit: Believe
Believe saw a strong increase in adjusted EBITDA at 67.1 million euros, up more than 33.5% versus 2023, or a margin of 6.8%, up year-over-year reflecting a focus on value optimization, control on investments, and operating leverage.
An increase in advances paid to labels and artists was less prominent than in 2023, leading to positive free cash flow generation. Net cash at the end of December 2024 was 139.9 million euro.
Believe reached new milestones in 2024, with over 800 billion streams generated globally, while the group further expanded its footprint and global reach with the launch of new imprints in Japan and Indonesia. Further, the group saw growth of its labels’ roster in Turkey, France, India, and Eastern Europe.
This year, Believe will increase its focus on value optimization, accelerate its strategy of controlled investments, and implement more aggressive automation and efficiency plans.
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