Anghami, the leading Middle East and North Africa-focused music streaming platform, reported an 18% increase in paying subscribers in Q1 2024 compared to the same period last year. This growth is a significant step forward for the company as it navigates through a challenging landscape.
In its annual report for 2023, Anghami detailed its ongoing progress, revealing a narrowed operating loss. This improvement comes despite disruptions caused by the war in Gaza and the devaluation of the Egyptian pound, which affected revenues. Nevertheless, the company's efforts to streamline its operations and improve its bottom line seem to be paying off.
As of the end of Q1, Anghami boasted 1.87 million premium subscribers, as stated in its official announcement on April 30. This subscriber base contributed to an 8% increase in quarterly revenue, primarily driven by a 27% rise in subscription revenue. These achievements have helped the company reduce its operating loss from $5.4 million to $2.7 million, indicating a move toward profitability.
The company also reported a positive change in its quarterly gross margin, which rose to 26% from 20% the previous year. Additionally, Anghami highlighted key strategic partnerships established during the quarter, including investment from Saudi media giant SRMG and expanded collaborations with Rotana Music and Egyptian singer Amr Diab.
Looking back at 2023, Anghami's financial results illustrate resilience in the face of economic challenges. Despite a 14.6% decline in total revenue to $41.38 million, the company's operating loss decreased from $17.38 million in 2022 to $14.56 million in 2023. This reduction was due to lower costs of revenue, which fell from $39.13 million in 2022 to $31.09 million in 2023.
While Anghami experienced a 27% decrease in Premium ARPU (average revenue per user), falling to $1.53 from $2.09, the company attributed this decline to currency devaluations in Egypt and Lebanon and new pricing plans catering to markets with traditionally lower ARPU.
Amid financial pressures, Anghami managed to navigate headwinds from geopolitical conflicts and currency issues. It focused on premium subscribers' growth and new strategic deals to bolster its position in the market.
In a transformative move, Anghami merged with OSN Group, owner of the MENA-focused TV and movie streaming service OSN+. This merger, completed shortly after Q1, formed a new entertainment powerhouse in the region and resulted in a significant boost to Anghami's share price.
Overall, Anghami is positioning itself for substantial potential revenue growth following the merger, as stated by Elie Habib, the company's co-founder and CEO. The music streaming service's strong start to 2024 and strategic initiatives offer a glimpse of a bright future for the company.
