An interior shot of Deezer’s Paris headquarters. Photo Credit: Deezer
Deezer’s Q3 2024 revenue neared $146 million (€134 million) thanks in part to the company’s continued growth in France and ongoing partnership expansions.
Paris-headquartered Deezer (Euronext: DEEZR) revealed these and different performance specifics in its third-quarter earnings report today. The revenue total represents an 11% YoY boost and consists of $93.40 million/€85.8 million from direct streaming operations (up 4.1% YoY), $45.18 million/€41.5 million from partnerships (up 21.3% YoY), and $7.29 million/€6.7 million from other sources (up 63.8% YoY).
By market, the Alexis Lanternier-led business generated over half its Q3 2024 revenue from operations in France ($85.44 million/€78.5 million, up 9.4% YoY), with the remaining $60.41 million/€55.5 million (up 13.5% YoY) having derived from all other regions.
Shifting to the subscribership side, Deezer is now approaching 10 million paid-access users; Q3 2024’s subscriber total grew 4.1% YoY despite a 1.4% YoY slip for direct subs (5.2 million). Meanwhile, the Access Industries-owned platform attributed the remaining 4.7 million subscriptions to partnerships (an 11% YoY Improvement).
As a pertinent aside, Q3 2023 data was updated “to offset the impact of” approximately 400,000 inactive Family accounts’ removal from the service. “We removed nearly 400,000 inactive Family accounts from our subscriber base,” Deezer CFO Carl de Place elaborated during the earnings call, “mainly from our direct segment in France and the rest of the world. … And this is a contractual thing due to the nature of agreements with the providers.
“We don’t expect that trend to continue materially in the next quarter. The bigger reason for that is that once the user reaches a certain seniority and is inactive, we do pay some penalties. We continue to remove those users, but the effect would be much less significant than what we’ve seen for this quarter,” he concluded.
Regarding the relatively strong subscriber showing, worth noting is that Deezer has by its own description ramped up festival sponsorships in France. Amid a pre-implementation dispute over the European nation’s “streaming tax,” which is now in effect, Spotify axed its involvement with multiple festivals.
The leading music streaming platform later upped its prices in France to boot – though Deezer has done the same on multiple occasions and, as underscored by execs during the Q3 earnings call, may well do so again in the near future.
It should also be highlighted that Deezer’s partnership subscriptions (with, among others, DAZN, another Access Industries subsidiary) are less lucrative than their direct counterparts. For Q3 2024, that refers specifically to monthly ARPU of $5.49/€5.4 for direct and $3.05/€2.8 for the partnership category.
Looking ahead to the remainder of 2024, Deezer reiterated “its objective to achieve 10% revenue growth” on the year. During today’s trading, however, DEEZR slipped 7.42% to about $1.57/€1.44 per share.