Believe: FY’23 Organic growth of 14.4% with growth recovery in Q4,
as expected Strong profitability improvement and free cash flow
close to breakeven 2024 Outlook: another step towards long-term
objective
FY’23 Organic growth of 14.4% with growth
recovery in Q4, as expectedStrong profitability
improvement and free cash flow close to
breakeven2024 Outlook: another step towards
long-term objective Paris, France – March 13,
2024
FY’23 Key figures1
- Revenue of €880.3 million in
FY’23, up +15.7% at current rate with an organic
growth of +14.4% reflecting growth rate recovery in Q4’23 as
anticipated.
- Adjusted organic growth2 of +19.5% in
FY’23 and +21.8% in Q4’23. Organic growth
penalized since Q2’23 by significant currency headwinds.
- Strong increase in Adjusted EBITDA at €50.3
million or a margin of 5.7%, up +110bps
YoY.
- Free cash flow slightly negative by €3.1
million, reflecting positive generation in H2’23 partially
offsetting H1’23.
- Net cash at the end of December’23 at €214.2
million, providing solid firepower for advances and
acquisitions.
FY 2023
Highlights
- Ensuring strong performance of the roster of artists and labels
in a wider variety of music genres at all stages of their
development.
- Further building up leadership in Asia with the launch of the
full offering in Japan and the acquisition of White Hill Music’s
catalog in India.
- Confirming commitment to foster healthy and fair music
ecosystem to Shape Music for Good.
2024 Outlook
- For FY’24, Believe anticipates an increase in paid streaming
driven by volume and price, progressive recovery in ad-funded
streaming as in Q4’23, additional market share gains given its
appeal to a wider variety of music genres and track record. Believe
assumes limited currency headwinds embedded in the market (c. -2%
expected for FY’24). Believe will further invest in its development
during the year, while pursuing efficiency gains. Based on those
assumptions, Believe expects:
- Organic growth of c. +18%. Adjusted organic growth for embedded
market FX of c. +20%.
- Further progress in Adjusted EBITDA margin: c. 6.5%.
- The Group’s reinforced appeal is generating a higher level of
attractive commercial opportunities and therefore of advances. The
Group anticipates that artists and labels advances will increase in
FY’24 in line with revenue, further building its long-term revenue
base. Overall, advances will continue impacting free cash flow
generation and the Group therefore anticipates free cash flow to be
slightly positive in FY’24.
- Believe notes that it is the object of ongoing discussions
around a potential change of control of the Group. At this stage,
the Company is not in a position to assess the potential impact on
its business and financial condition linked to the uncertainties
created by the current situation.
Denis Ladegaillerie, Founder and
CEO said: “Believe is posting today healthy results, fully
in line with expectations. These results are the outcome of
tremendous teamwork of our teams in furtherance of our mission
to develop artists and labels at all stages of their careers
with expertise, respect, fairness, and transparency. In 2023, we
have continued to hire great people, invest in technology and
innovate with our partners with one objective: nurture early-stage
talent, elevate established acts and support top-tier artists in
reaching new creative and commercial heights. Invest and innovate
to create ever more value for our artists and labels at all stages
will remain the core of our strategy in 2024 and in the years to
come!”.”
FY 2023 KEY FIGURES
in €
million |
FY 2022 |
FY 2023 |
Change YoY |
Organic change |
Group Revenues |
760.8 |
880.3 |
15.7% |
14.4% |
Premium Solutions |
712.6 |
825.1 |
15.8% |
14.7% |
Automated Solutions |
48.2 |
55.2 |
14.6% |
9.9% |
Adjusted EBITDA pre-Central
Platform |
107.9 |
128.4 |
|
|
in % of revenues |
14.2% |
14.6% |
40bps |
|
Premium Solutions |
101.3 |
118.3 |
+16.8% |
|
Automated Solutions |
6.6 |
10.1 |
+53.0% |
|
Central Platform |
(73.2) |
(78.1) |
+6.8% |
|
Group's Adjusted
EBITDA |
34.7 |
50.3 |
+44.8% |
|
in % of revenues |
4.6% |
5.7% |
110bps |
|
Operating income / loss
(EBIT) |
(22.3) |
(18.1) |
- |
|
Net income attributable to owners of
the parent |
(29.8) |
(5.5) |
- |
|
Net cash from operating activities |
73.7 |
12.7 |
|
|
Free cash flow |
52.0 |
(3.1) |
|
|
Net cash and cash
equivalents |
303.3 |
214.2 |
|
|
FY 2023 HIGHLIGHTS
Strong performance of the roster and signing activity
reflecting top quality of service
Believe further demonstrated its commitment to
develop audiences for artists at all stages of their career and
achieved a strong performance of its existing roster of artists and
labels in FY’23. The Group gained additional market share in most
key markets and positioned among top 3 players for local acts in
many European and Asian markets. This solid performance resulted in
an Adjusted organic growth of +19.5% in FY’23.
Believe’s strength is its presence across 50
countries around the world with local teams on the ground who are
fully part of the local music scenes and thus able to identify
local artists and labels with the best potential to partner with
and to accompany them at best in their development. The goal is to
provide artists, regardless of their level of development, with the
highest level of digital service quality in the market thanks to a
unique tech-enabled approach and by leveraging globally the
solutions developed centrally. The Group therefore resumed its
investment in local and central teams in H2’23 after lowering their
level in H1’23 to adapt to a more challenging economic environment.
Believe’s focus on the quality of service resulted in strong
commercial dynamism throughout FY’23, both in terms of renewals and
new signings. Believe’s appeal to artists and labels increased in a
wider variety of music genres thanks to their ongoing
digitalization, which also supports the Group’s commercial
success.
Proven capacity of Premium Solutions in
artist development from emerging to top charting talents in
European countries
In France, Believe proved its capacity to
develop artists at the top of the market in several genres, as well
as to nurture emerging talents, with 5 debut albums in the Top200.
Believe ranked #1 on local acts in FY’23, with a 29% market share
for the Top200 thanks to a strong presence both in new albums and
tracks, and in catalog. The Group had 42 albums in the Top200
(physical + digital according to SNEP data). Several artists of the
roster confirmed their high level of success during the year,
further building Believe’s strength in French local repertoire,
including WeRenoi, JUL, Yamê, Nej or Djadja & Dinaz.
In Germany, Believe ranked 48 singles in the
Top100 and achieved three times number one ranking during the year.
The launch of B-electronic (electro / dance) and Madizin (schlager
/ pop), respectively late 2022 and early 2023, allowed the Group to
further diversify its roster in the country. Believe also renewed
several local rap acts, including Raf Camora, the most streamed
artist of FY’23 in Germany.
In the UK, where the Group holds an emerging
position, Believe witnessed a surge in the consumption of its
roster with more than 35 billion streams during the year. The
Believe UK team also won the Best Label/Artist Services at the
Music Week Awards 2023 in H1’23, a true testament to the quality of
service in digital.
In Spain, the success of Iñigo Quintero’s viral
hit ‘Si No Estás’, which is the first global #1 track for Believe,
illustrated the growing digitalization of artist development and
the strength of the Group’s expertise in this field. The key to
success there has been a great partnership with the artist, his
label and Believe’s key DSP partners, combined with Believe’s
unique ability to combine strong AI data-driven expertise to
maximize the momentum for an artist’s track at the right time with
the right tools, supported by both local and global teams.
The Group was also very active in Eastern Europe
with a solid pipeline of new signings in FY’23. Believe has notably
partnered with Azariah, the current top artist in Hungary and
supported him in reaching new heights from being an Indie YouTube
artist to becoming the biggest pop singer & songwriter in the
country. The Group also developed its rap imprint in Romania and in
Poland enabling artists like Rava, Guzior or Kaz Balagane to become
top charting artists in Q4’23.
Further building up leadership in Asia
where the Group celebrated its first decade in 2023
Believe’s Group has played a central role in the
structuring of Asia Pacific’s music market. With over 10,000 labels
& artists3 signed across in Asia Pacific excluding Japan in the
past decade, Believe has paid more than €700 million in royalties
back to the local music industry4, further fueling the growth of a
sustainable local music ecosystem by fostering new artist
development, funding the launch of new labels and exploring new
genres of music and addressing new audiences. Such impact was
strengthened by Believe’s continuous effort to invest in and
nurture a new generation of music executives and digital experts,
being one of the first companies to sign deals with local digital
music services and supporting its international digital music
partners as they rolled out their services in the region. In the
last four years alone, Believe APAC has grown around twice the
market growth, thus contributing to substantially strengthening an
increasing local content market share.5
Believe continued its expansion in Asia in
H2’23. First, by building additional capabilities in Greater China,
where the Group received 5 awards for Chinese rapper Capper from
NetEase Cloud Music at the NetEase Annual Music Awards. Believe
also launched its full offering in Japan where it only operated
TuneCore so far, as the market undergoes an increased
digitalization of local music genres. Believe also launched early
2024 PlayCode a new imprint dedicated to the Japanese hip-hop scene
and signed 3 artists: ¥ellow Bucks, Red Eye and Issei Uno
Fifth.
The Group also further expanded its leadership
in India in December 2023 with a new investment in the country’s
largest digital music market segment, aka original soundtracks.
Believe acquired White Hill Music’s premium Punjabi music catalog,
a partner since 2017, including songs from active top and
established artists from Northern India, such as Maninder Buttar,
Gurnam Bhullar, Ninja, Nimrat Khaira, R Nait, Shivjot, Akhil, Happy
Raikoti, who all have millions of listenership on YouTube and
Spotify. Believe also acquired the existing YouTube channel, which
has a strong 23.4 million subscriber base and will be used to
promote the back-catalog and the new artists signed with Believe
Artist Services.
Launching new marketing program to
position TuneCore (Automated Solutions segment) as a development
engine for self-releasing artists
TuneCore Accelerator is a powerhouse marketing
program designed to drive discovery of music, expand audiences, and
promote deeper fan engagement. The program leverages
industry-leading services powered by Believe’s technology,
TuneCore’s marketing program, and innovative products. By
integrating the program, artists gain access to an arsenal of
industry-leading services and technologies and get greater support
to reach their next development phase.
In Q4’23, the first quarter following TuneCore
Accelerator’s launch, nearly 10,000 artists increased their streams
by an average of 143% compared to the previous quarter and most of
them were able to enter a higher market segment. This represents
about 1 in 8 artists who have been enrolled in the program since
its launch. Building on these early positive results, TuneCore
Accelerator will be expanded to enable even more self-releasing
artists to grow.
Confirming Believe’s commitment to
foster healthy and fair music ecosystem to further Shape Music for
Good
Believe completed its third global employee
satisfaction survey Your Voice. The participation rate was up to
81%, 2 points higher than the previous survey and the global eNPS
(employee Net Promoter Score) increased by 7 points compared to
last year. Talent is key and at the heart of the Group’s model and
strategy, which led Believe to roll out several actions to increase
employee satisfaction over the course of the year.
In the meantime, the Group pursued its focus on
gender diversity and developing talent internally and witnessed a
progression in all criteria retained in the CEO variable
compensation:
- Gender diversity: 45.6% of women among employees.
- Training rate: 94.4% (in average, 11 hours of training per
employee).
- eNPS: 15 (steep increases versus last year’s level).
Believe pursued its pivotal role in fighting
against streaming fraud by taking a leadership role as a founding
member of the Music Fights Fraud, by welcoming Spotify new model
and decision to penalize fraud more strictly than in the past, by
investing in new detection technologies and by reinforcing the
education provided to artists and labels on the matter.
The Group also pursued its efforts to support
greater diversity in the music industry and just released the
results of its fourth annual study BE THE CHANGE: Gender Equity in
Music. Part of Shaping Music for Good program, BE THE CHANGE has
become a key milestone to assess the challenges faced by female and
gender expansive creators and music professionals globally.
FY 2023 FINANCIALS
Adjusted organic growth of +19.5%
reflecting the anticipated recovery in growth rates witnessed in
Q4’23 FY’23 revenues grew by +15.7% to reach €880.3
million, reflecting an organic growth of +14.4%. Digital sales
increased by +13.0% in FY’23, reflecting solid underlying trends
and negative currency headwinds affecting royalties collected and
reversed by DSPs. Adjusted from this negative embedded market FX
effect, revenues grew by +19.5%. The change in perimeter related
mainly to the integration of Sentric contributed for +2.6% to
revenue growth but was partially offset by a negative forex impact
mostly driven by the Turkish lira and the US dollar (-1.4%).
Sentric contribution has been accounted for in non-digital sales,
which therefore grew by almost +50% in FY’23.
After reaching a low point in Q3’23, digital
monetization started recovering in Q4’23 thanks to a combined
impact of reduced market currency headwinds and improved comparison
base in ad-funded streaming. Consequently, Believe recorded revenue
growth of +18.1% in Q4’23, reflecting an adjusted organic growth of
+21.8%.
Premium Solutions driving organic
growth, revenue growth of Automated Solutions enhanced by
Sentric Digital Music Sales6 (DMS) exceeded €1.2 billion
in FY’23, reflecting double digit growth in Premium Solutions. DMS
in Automated Solutions were affected by the strengthening of the
euro versus the dollar.
Premium Solutions revenues
amounted to €825.1 million, an increase of +15.8%, mainly
organically driven (organic growth of +14.7%). Adjusted from the
negative embedded market FX in digital monetization, organic growth
was above +20%. As anticipated, Q4’23 witnessed a solid improvement
in digital versus the previous quarter. Paid streaming benefitted
from price increases by several large DSPs and market share gains
remained solid, while ad-funded streaming improved and currency
headwinds affecting digital sales were reduced. Believe further
demonstrated its capacity to enable labels to outperform their own
market and supported artist development in a wider variety of music
genres. Non-digital sales were particularly strong in the last
quarter, reflecting the integration of Sentric, strong live
activities in France and branding operations in Turkey.
Automated Solutions revenues
amounted to €55.2 million up by +14.6% in FY’23, reflecting organic
growth of +9.9%, a negative forex impact related to the dollar of
-2.9% and a perimeter effect related to the integration of Sentric
self-served activities of +7.6%. The negative forex impact
intensified in Q4’23, affecting digital monetization. The new
marketing program TuneCore Accelerator was successfully launched at
the end of the year, started contributing to Digital Music Sales in
Q4’23 and will contribute to TuneCore’s revenue this year. TuneCore
also increased the pricing of its paid subscription plans in
December 2023, which will contribute to revenue growth in FY’24.
Sentric is accounted for in non-digital sales, which therefore grew
significantly since its acquisition. Non-digital sales were also
significantly enhanced by a catch-up in TuneCore’s own publishing
business in Q4’23. TuneCore was already offering a set of
publishing services before Sentric’s acquisition.
Strong growth in most
geographies
in €
million |
FY 2022 |
FY 2023 |
Change YoY |
Europe (excl. France &
Germany) |
210.2 |
264.6 |
+25.9% |
Americas |
109.2 |
128.1 |
+17.4% |
APAC / Africa |
199.3 |
228.9 |
+14.9% |
France |
128.6 |
147.8 |
+14.9% |
Germany |
113.6 |
110.9 |
-2.4% |
Total |
760.8 |
880.3 |
+15.7% |
Revenue growth amounted to +25.9% in
Europe (excluding France and Germany) and
represented 30.1% of total revenues in FY’23. Revenue growth was
uplifted by the integration of Sentric, which was primarily present
in the UK. Believe remained on a strong growth trajectory in
Southern Europe and Eastern Europe. Digital monetization was
affected by currency headwinds notably in the UK but was globally
well oriented during the year in the whole region. The level of
activity remained particularly sustained in Turkey, including its
branding activities.
Americas grew by +17.4% and
represented 14.6% of Group revenues. The level of activity in
Brazil and Mexico was strong throughout the year, showcasing the
Group’s success in the Latin American music. In the US, which is
led by TuneCore business, the Group recorded strong growth after a
slight improvement in the first nine months of the year. Revenues
were already affected by the weakening of the dollar versus the
euro.
In FY’23, revenue growth reached +14.9% in
Asia Pacific and Africa, which represented 26.0%
of Group revenues. The performance was affected over the course of
the year by currency headwinds embedded in digital market
monetization and by depressed ad-funded streaming. The Group
pursued its strategy to build up a leader in Asia and its previous
investment enabled additional market share gains across the region.
The level of activity was particularly strong in Greater China and
Japan. India and Southeast Asia grew at a slower pace, as revenues
in those markets are more exposed to ad-funded streaming.
In France, revenues increased
by +14.9% in FY’23 and represented 16.8% of Group revenues. After
growing by c. 8% in the first nine months, Believe recorded very
strong growth in Q4’23 thanks to a strong calendar of new releases
and higher live music activities. Believe is now well-established
among the top 3 players for local acts and its performance became
more influenced by the release calendar of top acts. Believe also
confirmed its leadership in rap music and continued diversifying
its roster during the year.
In Germany, revenues were down
-2.4% in FY’23 and represented 12.6% of Group revenues. Digital
sales returned to healthy growth in Q4’23 after a solid H1’23
performance and temporary slowdown in Q3’23. The growth is driven
by the strong positioning on local acts and was also supported by
the ongoing diversification of music genres in the roster.
Non-digital sales further declined as the Group accelerated its
exit from contracts that were too heavy in physical sales and
merchandising.
Delivering profitable growth as
demonstrated by the solid increase in Adjusted EBITDA
margin
Believe also focused on improving efficiency
during the year, carefully managing its investment cycles.
Adjusted EBITDA pre-Central Platform
costs7 grew by +19.0% in FY’23 to reach €128.4 million
(versus €107.9 million in FY’22). In Premium Solutions, the Group
resumed investment in local teams in H2’23 at a higher pace than in
H1’23 as revenue ramp up was clearer and added sales and marketing
capabilities in Europe and Asia. The Group also expanded operations
in Greater China and opened new offices in Japan. In Automated
Solutions, the Group introduced new features and developed a new
marketing program to support the development of self-released
artists. As a result, sales & marketing at the segment level
increased year-over-year with an acceleration in H2’23. Adjusted
EBITDA margin pre-Central Platform reached 14.6%, an increase of
40bps compared with FY’22. This margin included growth investments
in both segments, which represented 3.0% of total revenues
excluding Sentric in FY’23 (vs 4.9% in FY’22).
Central Platform costs (€78.1
million in FY’23 versus €73.2 million in FY’22) increased by +6.8%
year-over-year, and further decreased over revenue, representing
8.9% in FY’23 compared with 9.6% in FY’22. Efficiency plans enabled
the Group to optimize its investments in the Central Platform over
the course of the year. The Group pursued its investment in data
analysis, digital marketing and AI-backed tools for discovery and
audience development, but also postponed secondary projects. Better
amortization of the Central Platform provided significant operating
leverage in FY’23 as in previous years.
As usual some Central Platform investments are
capitalized under IFRS accounting principles. In FY’23, total
investment (P&L and capitalized costs) in the Central Platform
amounted to €91.6 million. Total investment went up +3.1%
year-over-year and represented 10.4% of total Group revenues
compared with 11.7% in FY’22.
The Group’s Adjusted EBITDA
increased by c. +45% year-over-year to reach €50.3 million in FY’23
compared with €34.7 million in FY’22. Adjusted EBITDA margin
amounted to 5.7% compared with 4.6% in FY’22. This increase of
110bps resulted from the improved profitability of the segment and
better amortization of Central Platform costs. Believe was steadily
during the year at its mid-term objective level (Group adjusted
EBITDA margin of 5% to 7% by 2025).
Operating income (EBIT) -
Depreciation & Amortization amounted to €61.3 million in FY’23,
a steep increase compared with last year (+36.7%), as acquisitions
resumed in H1’23 with that of Sentric in March. The Group also made
some investment in catalog, including notably the acquisition of
White Hill Music in December. The Adjusted EBITDA improvement
partially offset the increase in Depreciation & Amortization,
enabling a loss reduction at the EBIT level compared with last
year.
Free cash flow reflecting commercial
dynamism and solid cash level at the end of
December’23
Working capital variation remained negative by
€23.7 million for the full year but witnessed some improvement in
H2’23 as anticipated. Believe had additional attractive commercial
opportunities to renew and sign artists and labels and provided
additional financing through advances in H2’23. There has been less
request to sign on much longer terms than usual as this was the
case in Q2’23. The increase in advances was therefore limited in
the second half and amounted to €81.2 million in FY’23. The current
activity enabled the Group to extract cash from the working capital
in FY’23, further compensating for the elevated level of artists
and label advances.
Capitalized development costs were in line with
previous years and amounted to €17.9 million on a full year basis
(2% of Group revenues).
Free cash flow was negative by just €3.1 million
in FY’23, mostly due to negative working capital variation.
Cash on the balance sheet amounted to €214.2
million at the end of December’23 compared to €303.3 million at the
end of December’22, mostly reflecting the acquisition of Sentric,
catalog acquisitions including White Hill Music’s catalog and
higher artist and label advances.
FY’24 OUTLOOK AND MID-TERM OBJECTIVES
In FY’24, the Group will continue to drive a
profitable growth trajectory towards its long-term profitability
objective of 15% Adjusted EBITDA margin.
The revenue growth scenario implies solid paid
streaming trends, which will combine new subscribers and price
increases at some DSPs and a progressive recovery of ad-funded
streaming. Ad-funded streaming is not anticipated to recover in
emerging markets before the second half of the year. The growth
scenario also implies additional market share gains across regions,
and notably in countries where the Group is not yet ranking in the
Top 3 for local acts. Believe also anticipates an improved currency
environment for digital monetization. The Group assumes that the
negative embedded market FX effect will amount to -2%, compared
with -5.1% in FY’23. Consequently, Believe expects Adjusted Organic
growth of c. +20% in FY’24. Organic growth is expected in Q1’24 to
be below Q4’23 rate, which benefited from a very strong level of
live and branding activities and should accelerate from Q2’24.
The Group will continue to adapt the investment
cycle to market growth and will therefore size its investment in
each key market. Believe will also continue to optimize investments
in the Central Platform and increase efficiency through
automatization. The Group will further focus on efficiency during
the year, but margin improvement will be lower than in FY’23 due to
the higher level of Tech & Product spending. As a result, the
Group anticipates an Adjusted EBITDA margin of c. 6.5%.
Believe notes that it is the object of ongoing
discussions around a potential change of control of the Group. At
this stage, the Company is not in a position to assess the
potential impact on its business and financial condition of the
uncertainty created by the current situation.
The Group will continue to allocate cash between
advances and acquisitions in the next months. Believe’s reinforced
appeal to a greater number of artists and labels in a wider variety
of music genres and the ongoing industry consolidation provide more
attractive opportunities for the Group, which will therefore
allocate more cash to internal and external investments going
forward.
The Group is on track to deliver on its
medium-term trajectory communicated at the IPO, including a
2021-2025 CAGR of between +22% and +25% and a Group Adjusted EBITDA
of 5%-7% by 2025, implying a segment Adjusted EBITDA margin of
15%-16% (which is a "high growth period" margin, as the revenue
growth is partially reinvested). Believe reiterates its confidence
in its ability to achieve its long-term target of at least 15%
Group Adjusted EBITDA margin.
The annual financial statements are available on our investor
website: Investors | Believe
Webcast: We will host a webcast
https://edge.media-server.com/mmc/p/xj8rrbby and conference call
starting at 6:30 p.m. CET (5:30 p.m. GMT) today. Denis
Ladegaillerie, our Founder and CEO, and Xavier Dumont, our Chief
Financial and Strategy Officer, will present FY23 earnings and
answer questions addressed in the call or submitted through the
webcast.
Conference call details:France, Paris: +33
(0) 1 70 91 87 04United Kingdom, London: +44 1 212 818
004United States, New York: +1 718 705 87 96Conference
ID: 88365
Investor
Relations & Financial Media Emilie
MEGELinvestors@believe.comTel: +33 1 53 09 33
91 Cell: + 33 6 07 09 98
60 |
Press
Relations Manon
JESSUAmanon.jessua@believe.comAnass BENDAFI: +33 6
80 42 51 84anass.bendafi@agenceproches.com |
Financial agenda Believe (Ticker: BLV, ISIN:
FR0014003FE9):24 April 2024: Q1 2024 revenue – Press
release to be issued after market close.
26 June 2024: Annual General Meeting
1st August 2024: H1 2024 earnings – Press release to be issued
after market close.
23 October 2024: Q3 2024 revenue – Press release to be issued
after market close.
Appendix
- Use of Alternative Performance Indicators
To supplement our financial information
presented in accordance with IFRS, we use the following non-IFRS
financial measures:
- DMS is the revenue generated from digital store partners and
social media platforms before royalty payment to artists and
labels.
- Organic growth accounts for revenue growth at a like-for-like
perimeter and at constant exchange rate.
- Adjusted EBITDA is calculated based on operating income (loss)
before (i) depreciation, amortization and impairment, (ii)
share-based payments (IFRS 2) including social security
contributions and employer contributions (iii) other operating
income and expense; and (iv) depreciation of assets identified at
the acquisition date net of deferred taxes from the share of net
income (loss) of equity-accounted companies.
- Free cash flow corresponds to net cash flows from operating
activities, after taking into account acquisitions and disposals of
intangible assets and property, plant and equipment, and restated
for (i) costs related to acquisitions, (ii) acquisition costs of a
group of assets, that does not meet the definition of a business
combination and (iii) advances related to distribution contracts
intended specifically for the acquisition of assets (acquisition of
companies, catalogs, etc).
- Quarterly revenue by division
in € million |
Q1 2022 |
Q1 2023 |
Change |
Organic at constant rate |
Premium solutions |
151.1 |
186.0 |
+23.0% |
+23.8% |
Automated solutions |
11.4 |
12.7 |
+11.2% |
+9.8% |
Total revenues |
162.5 |
198.6 |
+22.2% |
+22.8% |
in € million |
Q2 2022 |
Q2 2023 |
Change |
Organic at constant rate |
Premium solutions |
178.1 |
202.5 |
+13.7% |
+13.2% |
Automated solutions |
11.6 |
14.3 |
+22.9% |
+8.6% |
Total revenues |
189.7 |
216.8 |
+14.3% |
+12.9% |
in € million |
Q3 2022 |
Q3 2023 |
Change |
Organic change |
Premium solutions |
184.4 |
202.9 |
+10.1% |
+7.9% |
Automated solutions |
12.6 |
12.1 |
-4.5% |
+0.6% |
Total revenues |
197.0 |
215.0 |
+9.1% |
+7.5% |
in € million |
Q4 2022 |
Q4 2023 |
Change |
Organic change |
Premium solutions |
199.0 |
233.7 |
+17.4% |
+15.4% |
Automated solutions |
12.5 |
16.2 |
+29.3% |
+20.4% |
Total revenues |
211.6 |
249.9 |
+18.1% |
+15.7% |
- Revenue breakdown between Digital and
non-digital sales growth (as reported)
|
Q1’23 |
Q2’23 |
H1’23 |
Q3’23 |
Q4’23 |
H2’23 |
FY’23 |
Digital sales |
93% |
90% |
91% |
92% |
86% |
89% |
90% |
Non-digital sales |
7% |
10% |
9% |
8% |
14% |
11% |
10% |
- Revenue breakdown between Digital and
non-digital sales growth (as reported)
|
Q1’23 |
Q2’23 |
H1’23 |
Q3’23 |
Q4’23 |
H2’23 |
FY’23 |
Digital sales |
+ 22.2% |
+ 11.9% |
+ 16.7% |
+ 7.1% |
+12.3% |
+9.8% |
+13.0% |
Non-digital sales |
+ 21.8% |
+ 42.1% |
+ 32.9% |
+ 39.6% |
+74.6% |
+61.0% |
+48.2% |
- Adjusted Organic Growth (organic growth
adjusted from embedded market forex impact)
|
Q1 2023 |
Q2 2023 |
H1 2023 |
Q3 2023 |
Q4 2023 |
H2 2023 |
FY’23 |
Adjusted organic growth |
+23.1% |
+18.0% |
+20.4% |
+15.4% |
+21.8% |
+18.7% |
+19.5% |
- Q4’23 revenue by geography
in € million |
Q4 2022 |
Q4 2023 |
Change YoY |
France |
35.1 |
46.9 |
+33.5% |
Europe (excl. France &
Germany) |
58.7 |
75.9 |
+29.3% |
Americas |
30.8 |
36.5 |
+18.7% |
APAC / Africa |
56.2 |
60.9 |
+8.4% |
Germany |
30.9 |
29.8 |
-3.7% |
Total revenues |
211.6 |
249.9 |
+18.1% |
About BelieveBelieve is one of
the world’s leading digital music companies. Believe’s mission is
to develop independent artists and labels in the digital world by
providing them the solutions they need to grow their audience at
each stage of their career and development. Believe’s passionate
team of digital music experts around the world leverages the
Group’s global technology platform to advise artists and labels,
distribute and promote their music. Its 1,919 employees in more
than 50 countries aim to support independent artists and labels
with a unique digital expertise, respect, fairness and
transparency. Believe offers its various solutions through a
portfolio of brands including Believe, TuneCore, Nuclear Blast,
Naïve, Groove Attack, AllPoints, Ishtar and Byond. Believe is
listed on compartment B of the regulated market of Euronext Paris
(Ticker: BLV, ISIN: FR0014003FE9). www.believe.com
Forward Looking statement This
press release contains forward-looking statements regarding the
prospects and growth strategies of Believe and its subsidiaries
(the “Group”). These statements include statements relating to the
Group’s intentions, strategies, growth prospects, and trends in its
results of operations, financial situation and liquidity. Although
such statements are based on data, assumptions and estimates that
the Group considers reasonable, they are subject to numerous risks
and uncertainties and actual results could differ from those
anticipated in such statements due to a variety of factors,
including those discussed in the Group’s filings with the French
Autorité des Marchés Financiers (AMF) which are available on the
website of Believe (www.believe.com). Prospective information
contained in this press release is given only as of the date
hereof. Other than as required by law, the Group expressly
disclaims any obligation to update its forward-looking statements
in light of new information or future developments. Some of the
financial information contained in this press release is not IFRS
(International Financial Reporting Standards) accounting
measures.
1 Alternative performance indicators are presented, defined and
reconciled with IFRS in appendices 1 of this press release (page
10).
2 Adjusted organic growth aims at providing a view on Believe’s
organic revenue growth after neutralizing embedded market forex
impact: Believe assesses the forex impact on each digital market
served by the Group to estimate the market forex embedded into its
digital revenues collected from its digital partners.
3 Source: internal data. 2019 to 2022 period, APAC Premium
solutions only (ex. Japan).
4 Source: Internal Data, Amount Paid by Believe group to APAC
clients (Premium Solutions + automated solutions) between April
2013 to March 2023.
5 Believe APAC Premium Solutions client digital revenue CAGR in
APAC territory, compared to APAC market digital revenue CAGR
between January 2019 and December 2022. Internal, IFPI.
6. Digital Music Sales or DMS is a non IFRS measure defined in
appendix 1.
7. The Adjusted EBITDA pre-Central Platform costs consists in
the Adjusted EBITDA of the Automated and Premium Solutions segments
before considering Central Platform costs. Central Platform costs
account for the costs that cannot be allocated by segment.
- 2024-03-13-Believe-FY 2023 earnings-US
Grafico Azioni Believe (EU:BLV)
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