Anghami, a MENA-focused music streaming service, reported a 17% YoY increase in the number of its subscribers, to 1.73 million as of the end of September 30, 2023.
MENA’s answer to Spotify also saw adjusted revenue climb 8% YoY in the first nine months of 2023, to USD $30 million, with its gross profit margin widening to 22% from 12% a year prior, according to Anghami’s Q3 preliminary results, released December 26.
The company attributed its strong performance to a 17% YOY jump in revenue from direct subscriptions, which offset the 21% YOY drop in revenue from telco channels.
The company said the drop in revenue from telco channels “was anticipated as Anghami’s strategy is to focus on growth within direct channels that offer improved margins, better collection terms, and protection against currency fluctuations.”
Revenue from advertising, excluding “barter transactions,” grew 28% YoY in Q3, boosted by the continued expansion of Anghami’s production unit, Anghami Studios, which collaborates with major brands to provide tailored advertising solutions. The company also credited improved commercial terms and expanded scope with its advertising partners for the large increase in ad revenue.
In August, Anghami introduced its premium “Anghami Gold” subscription tier, offering enhanced features and AI-powered music and podcast experiences. Additionally, the platform strengthened its largest telco agreement with Vodafone Egypt in October, doubling potential revenue.
Beyond financials, Anghami secured key strategic investments. SRMG, a prominent Saudi media group, pumped $5 million into the company in August at a valuation of $2.50 per share, aiming to fuel Anghami’s growth and leverage its expertise.
The biggest deal, however, came from OSN Group, which in November agreed to contribute its video streaming platform OSN+ and invest up to $50 million in Anghami, valuing the music service at $3.65 per share. The merger created the MENA region’s first integrated music and video streaming platform, combining over 120 million registered users and 2.5 million subscribers.
The transaction is expected to close in the first quarter of 2024, subject to customary approvals.
“This quarter has been transformative for Anghami, both strategically and financially. With the securing of key strategic anchor investors such as OSN Group and SRMG, we have achieved a significant milestone in our growth journey,” said Eddy Maroun, Co-Founder and CEO at Anghami.
“Our growth has been concentrated in high-margin segments, aligning perfectly with our strategic focus. Moving forward, integrating video streaming capabilities is a strategic move, promising significant enhancements to our platform and broadening our service offerings,” Maroun added.
“This quarter has been transformative for Anghami, both strategically and financially. With the securing of key strategic anchor investors such as OSN Group and SRMG, we have achieved a significant milestone in our growth journey.”
Eddy Maroun, Anghami
Established in 2012 by entrepreneurs Eddy Maroun and Elie Habib in Lebanon, Anghami claims to be the first music-streaming platform in the MENA region. The company is backed by SRMG Ventures, the venture capital arm of Saudi Research and Media Group (SRMG).
Anghami has steadily broadened its business horizons in recent years. In May, it delved into artificial intelligence with the introduction of its AI-Powered Personalized Podcast and AI Newsroom. Additionally, it made strategic moves such as acquiring events and concerts company Spotlight in June 2022 and forming collaborations with notable entities like Sony Music Middle East, the mobile game PUBG and Rotana Music, backed by Warner Music Group.
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