Nairobi — Online music streaming platform Mdundo has content creators in Kenya Sh60 million for six-months ending December 2022.
This represented a half of the company's half year earning of Sh115 million.
Earnings were boosted by high advertising revenue, subscriber revenue and music catalogue.
"Mdundo's revenue for this period was over KES 115 million (DKK 6.4 million), an increase of 161% compared to the same period last financial year," Mdundo said in a statement.
"Mdundo pays 50% of revenue to rights owners, which translates to KES 60 million during first half of 2022 ending in December 2022."
In the period, the firm reported a 23.4 million Unique Monthly Users, representing 15 percent increase since June 2022.
Out of 23.4 million, 3.5 monthly users were from Kenya, up from 2.7 million in December 2021.
"The increase in unique monthly has majorly driven by use of smartphones, internet penetration, premium products, and partnerships with telecommunication companies," the firm said.
"Advertising revenue: The advertising revenue closed at DKK 4.3 million in the financial period H1 22/23 compared to DKK 2.3 million in the period H1 21/22, an increase of 89%. Majority of Mdundo's advertising orders came from Kenya."
The firm expects the number of monthly active users to increase to approx. 25 million at the end of the financial year 2022-23.
"The company is still expecting total revenue of DDK 13 – 16 million of the financial year ending 30th June 2023, up from DKK 7.2 million last financial year and EBITDA in the range of minus DKK 7 – 8.5 million in 2022-2023 as result of increased investment focusing on driving value per user through premium products and telco partnerships," Mdundo said.
"Subscription revenue is expected to account for 40% of the total revenue within a few years."
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