Mdundo Triples Premium Revenue as MAUs Top 26.6 Million

Mdundo revenue
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Mdundo revenue
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Photo Credit: Mpumelelo Macu

Africa-based music streaming service Mdundo reports an increase of triple its premium revenue as its monthly active users top 26.6 million.

In the annual report for its fiscal year that ended on June 30, Mdundo reported a subscription revenue jump from $1.02 million (7.2 million DKK) the previous year to $1.78 million (12.6 million DKK) by the end of June.

The Kenya-headquartered music streaming service reported a 239% year-over-year jump in revenue from paid subscriptions, recording a 23.2% increase in monthly active users (MAUs). Though headquartered in Kenya, Mdundo is listed on Denmark’s NASDAQ exchange and reports its earnings in Danish kroner (DKK).

Subscription revenue now accounts for 35% of Mdundo’s revenue, up from 18% the previous fiscal year. The massive increase in subscription numbers put the company on track to reach its goal of meeting a positive EBITDA by 2025, and to raise 40% of its revenue from subscriptions in the future.

Advertising revenue also increased from $845,000 (6 million DKK) to $1.15 million (8.2 million DKK) in a 37% year-over-year increase, bringing total revenue to $17.74 million (12.6 million DKK) in a 75% year-over-year increase.

Total MAUs of 26.6 million at the end of June exceeded the company’s expectations of 25 million and mark a significant increase from the 20.3 million reported at the end of the previous fiscal year. Mdundo reiterates its earlier forecasting that it will hit 35 million MAUs by the end of the 2023 to 2024 fiscal year — a 32% year-over-year increase.

“This performance harmonizes with our mission to emerge as the foremost pan-African music service. Our sighs remain set on achieving 50 million unique monthly active users by mid-2025,” says Mdundo.

The company is laser-focused on the five key markets of Kenya, Ghana, Nigeria, Tanzania, and South Africa. Those markets encompass “a combined population of 422 million people, approximately 35% of Sub-Saharan Africa’s population,” offering substantial growth opportunities due to high internet penetration rates and robust economic development. In June 2023, those five markets accounted for 15 million of Mdundo’s 26.6 million monthly active users.

By 2025, 625 million people in Sub-Saharan Africa are expected to sign up for mobile services, in addition to the roughly 500 million already subscribed as of 2020.

“This rapid expansion in digital connectivity underscores the immense growth potential across the continent,” says Mdundo, which has established major partnerships with telecom providers including Tanzania’s Vodacom, Nigeria’s Airtel, and MTN in Nigeria, Ghana, and South Africa.

“Drawing parallels with historical shifts in music consumption patterns, it’s noteworthy that Africa is embarking on a journey akin to that observed in the Western world a decade ago, transitioning from illegal to legal music services.”

Mdundo remains focused on “delivering locally relevant services and content” while acknowledging the significance of cultural diversity and local preferences.