France-headquartered music streaming service Deezer has revealed its monetary outcomes for the six-month interval ending June 30, 2025, reporting flat income efficiency as its complete subscriber base continued to say no.
Consolidated revenues in H1 reached €267.1 million ($305 million), down 0.3% YoY, however up 1.3% at fixed forex.
Deezer’s complete subscriber base fell to 9.2 million on the finish of H1, down from 9.4 million in Q1 and towards 10 million in H1 2024.
The decline got here as subscribers acquired by business-to-business partnerships shrank 21.1% to 3.9 million in H1.
Consequently, Partnerships income additionally slumped 11.9% YoY to €76.5 million ($87m), which the corporate attributed to the “conversions of Mercado Libre promo cohorts to Premium provides.”
The double-digit drop in Partnerships income offset the 1.2% YoY enhance in Deezer’s income from Direct subscribers to €173.6 million ($198) for H1, which the corporate attributed to “stable momentum in France with a QoQ acceleration of the subscriber base” and a slight 0.5% enhance in ‘Remainder of World’ subscribers achieved with out new advertising and marketing investments.
Deezer’s Direct subscriber base climbed 5.5% YoY to 5.3 million, with Direct subscribers in France rising 8.2% YoY to 3.6 million and Remainder of World subscribers inching up 0.5% to 1.8 million.
“We delivered our second consecutive half yr of constructive EBITDA – a serious monetary milestone that displays the self-discipline of execution of our technique and confirms our turnaround.”
Alexis Lanternier, Deezer
Regardless of the flat income efficiency and the general drop in complete subscribers, Deezer reported an adjusted EBITDA of €2.1 million ($2.4m), recovering from an adjusted EBITDA lack of €5.0 million ($5.7m) in H1 2024. This represents an enchancment of €7.1 million ($8.1m) and marking the corporate’s second consecutive half-year of constructive adjusted EBITDA.
Deezer mentioned: “This good efficiency primarily mirrored larger adjusted gross revenue and strict administration of SG&A and advertising and marketing bills which decreased by 6.1 million YoY.”
Alexis Lanternier, CEO of Deezer, added: “We delivered our second consecutive half yr of constructive EBITDA – a serious monetary milestone that displays the self-discipline of execution of our technique and confirms our turnaround. Deezer is on monitor to satisfy its monetary targets introduced for the total yr.”
Deezer’s H1 income efficiency, nonetheless, confirmed combined outcomes, with its residence market of France driving development whereas worldwide markets declined. The corporate generated €160.2 million ($183m) in France, up 4.0% YoY, whereas its income exterior France fell 6.2% YoY to €106.9 million ($122m).
Direct subscription ARPU (common income per consumer) stood at €5.50 ($6.29) per thirty days, down 1.8% YoY, whereas Partnership ARPU improved 3.7% to €3.10 ($3.54) per thirty days because of what Deezer referred to as “a greater combine” following the Mercado Libre subscriber conversions.
In the meantime, the corporate’s ‘Different’ income section, which incorporates promoting and ancillary income, surged 77% YoY to €17.0 million ($19.4m) in H1, pushed by what the corporate described as “the great efficiency of the white labelling options for {hardware} / media companions.”
The corporate’s adjusted gross revenue totaled €65.5 million ($74.8m) in H1, up 1.5% YoY, whereas adjusted gross revenue margin improved to 24.5% from 24.1%.
Deezer reported a internet lack of €7.6 million ($8.7m), bettering from the €19.4 million ($22.2m) internet loss in H1 2024. Whereas the corporate’s free money circulation narrowed to €1.0 million ($1.1m) from €7.3 million ($8.3m) final yr, Deezer mentioned it expects constructive free money circulation for the second yr in a row.
Throughout the first half, Deezer launched a number of strategic initiatives as a part of what CEO Alexis Lanternier referred to as its “new strategic plan.” These initiatives embody the launch of Deezer Enterprise, which has attracted manufacturers like UGC, Converse, and Dunkin’, renewed partnerships with Orange and Bouygues in France, in addition to Sonos within the US. The corporate additionally launched what it claimed was “the world’s first AI tagging system for music streaming.”
The AI tagging system revealed that 18%, or greater than 20,000, of all music uploaded each day to Deezer are 100% AI generated. Deezer filed two patent purposes for the know-how in December.
“We additionally continued to spearhead accountable innovation within the music trade, selling equity and transparency, as we launched the world’s first tagging system for 100% AI generated music in streaming.”
Alexis Lanternier, Deezer
Lanternier mentioned: “We have now efficiently launched our new strategic plan, introducing a primary wave of revolutionary options aimed toward empowering our customers, connecting them in additional private methods with their favourite music and artists. The success of this new technique led to sturdy momentum in France, with regular subscriber development.”
“We additionally continued to spearhead accountable innovation within the music trade, selling equity and transparency, as we launched the world’s first tagging system for 100% AI generated music in streaming.”
Music Enterprise Worldwide
