Believe Posts 32% 2022 Revenue Jump As Asia-Pacific and Africa Income Cracks $200 Million

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Believe founder and CEO Denis Ladegaillerie. Photo Credit: Believe

About five weeks after touting roughly €1.1 billion in annual “digital music sales,” Believe has revealed that it achieved nearly 32 percent revenue growth last year.

Paris-headquartered Believe, which has traded on the Euronext since June of 2021, posted its 2022 financials today. According to this performance analysis, the TuneCore owner generated €760.8 million ($804.8 million at the present exchange rate) during the 12-month stretch, reflecting the aforesaid 31.8 percent year-over-year (YoY) hike.

Explaining the double-digit revenue improvement – consisting specifically of 31.6 percent YoY growth across “premium solutions” (€712.6 million/$754.4 million total) and a 34.5 percent YoY jump in the “automated solutions” category (€48.2 million/$51 million total) – Believe indicated that “all businesses recorded increases in revenue from their existing portfolio” during 2022.

On a quarterly basis, the final three months of 2022 saw Believe’s revenue grow by 7.4 percent quarter over quarter and by 22.3 percent YoY to €211.6 million/$224 million, the report shows, with the sum encompassing approximately €199 million/$210.7 million from premium solutions (up 22.2 percent YoY).

Similarly, Believe pointed to significant 2022 revenue boosts in Europe (€452.4 million/$478.9 million, up 24.6 percent YoY), Asia-Pacific and Africa (€199.3 million/$211 million, up 52.7 percent YoY), and the Americas (€109.2 million/$115.6 million, up 30.7 percent YoY).

Behind the income gains throughout Europe, the French business identified an even 11 percent YoY revenue uptick in Germany (€113.6 million/$120.3 million), a 34 percent increase in France (€128.6 million/$136.2 million), and a 27.6 percent revenue surge across the continent’s other markets (€210.2 million/$222.5 million). Moreover, Believe said that it was during 2022 “the second largest player for hip-hop in Germany,” besides claiming that it’s “now positioned as [a] leader in India and Southeast Asia.”

Believe also disclosed that its “number of artists served directly or via labels” had risen by 200,000 YoY to crack a “milestone” 1.3 million or so. In “Greater China,” where the company is said to have roughly 80 employees and five offices, 2022 brought premium-solution deals with “more than 300 labels and above 250 artists directly,” Believe communicated.

Adjusted EBITDA came in at €34.7 million/$36.7 million during 2022 (up 48.9 percent YoY), Believe relayed, against an operating loss of €22.3 million/$23.6 million (up slightly YoY) and a free cash flow of €52 million/$55.1 million as well as €303.3 million/$321.1 million in “cash on the balance sheet.” Regarding the latter, Believe intends “to resume its acquisition strategy” and pursue “opportunities created by current market conditions.”

Looking forward to the remainder of 2023, Believe has forecasted organic revenue growth of “around” 18 percent, driven by an anticipated “continued increase in paid streaming” and despite “challenging ad-funded streaming monetization.”

“In 2023, we will continue our profitable growth strategy: invest in our teams to grow market share, innovate in audience development products for our artists and labels, and further drive operational efficiencies through technology and scale to increase profitability,” said Believe founder and CEO Denis Ladegaillerie, whose company is scheduled to unveil its Q1 performance details on Thursday, April 27th.