Anghami Files 2023 Annual Report and Announces 2024 Q1 Results, Highlighting 18% Growth in Subscribers and Significant Margin Improvement
Anghami Inc. (NASDAQ: ANGH) filed its 2023 annual report and announced Q1 2024 results, highlighting an 18% growth in premium subscribers and significant margin improvement. The company achieved top-line improvements with 1.87 million premium subscribers by March 31, 2024, an 8% increase in total revenues, and a 6% improvement in gross margin. Operating loss decreased from $5.4 million to $2.7 million, showing progress towards profitability. Anghami completed a landmark transaction with OSN Group, acquired a cash investment of $38 million, and integrated video streaming services. Despite challenges in 2023, the company remains optimistic about revenue growth opportunities in 2024.
- Anghami achieved an 18% growth in premium subscribers by March 31, 2024, reaching 1.87 million.
- Total revenues grew by 8%, mainly driven by a 27% growth in subscription revenue.
- Gross margin improved from 20% to 26%, reflecting better operational efficiency.
- Operating loss decreased from $5.4 million to $2.7 million, indicating progress towards profitability.
- Anghami completed a transformative transaction with OSN Group, acquiring a cash investment of $38 million and integrated video streaming services.
- Anghami faced challenges in 2023 due to the devaluation of the Egyptian currency and disruptions caused by the Gaza war.
- Key projects and events were postponed to 2024, impacting the company's financial performance.
- Despite challenges, Anghami's core subscription business continued to grow, supported by advertising and production segments.
- The company remains optimistic about revenue growth opportunities in 2024 despite the setbacks faced in 2023.
Insights
Anghami's subscriber growth and margin improvement are positive indicators of a healthy trajectory towards profitability. The 18% increase in premium subscribers signifies a robust demand for Anghami's services and the 8% total revenue growth, driven by a notable 27% upsurge in subscription revenue, showcases the company’s ability to monetize its user base effectively. Particularly impressive is the gross margin expansion from 20% to 26%, which suggests cost optimization measures such as renegotiation of content agreements and streamlining technology costs are yielding tangible financial benefits.
The strategic milestone of the OSN+ transaction marks a significant pivot for Anghami, potentially creating a more diversified digital media offering. The integration of OSN+'s video streaming with Anghami’s audio platform might catalyze new subscriber growth and create cross-selling opportunities, although the real test will be in the execution and how well the combined services resonate with consumers.
Despite the positive Q1 2024 results, the impact of geopolitical tensions and currency devaluation present risks that could affect future earnings. However, the company's ability to overcome challenges in 2023 and post an improved operating loss from $5.4 million to $2.7 million showcases managerial effectiveness and resilience. For investors, the focus should now be on how Anghami leverages its strategic initiatives to sustain growth and navigate macroeconomic uncertainties.
The MENA region's streaming market is witnessing dynamic transformations, with Anghami cementing its position as a leading player in this space. The 18% growth in subscribers is a strong testament to Anghami’s brand appeal and the effectiveness of its user acquisition strategies, with a disciplined focus on high-margin channels. Enhanced AI capabilities for user recommendations suggest a commitment to personalized experiences, which can be a significant differentiator in the crowded streaming space.
The successful execution of exclusive concerts and strategic partnerships, like that with Amr Diab, reflects Anghami's deep understanding of regional preferences and market trends, allowing it to create localized content that resonates with its user base. However, the market should monitor how Anghami balances investment in exclusive content and partnerships with cost management to ensure sustainable growth.
Investors should appreciate the strategic nature of the OSN+ transaction, which signals Anghami's broader ambitions in the digital entertainment industry, though it's essential to keep an eye on the integration process and the competitive landscape, with global players also vying for market share.
Advancements in Anghami's technology stack, specifically the enhancements in AI for user recommendations, are pivotal for maintaining a competitive edge in the music streaming industry. Streamlining the technology backend to reduce costs while improving performance and scalability is an intelligent move that can lead to long-term operational efficiencies.
The strategic emphasis on direct subscription channels indicates savvy business acumen in leveraging mobile app stores and web platforms to drive higher margin revenue streams. Continuous tech improvements not only help in reducing operational losses but also form the backbone for supporting the integration of the newly acquired OSN+ video streaming business.
Anghami’s technological enhancements are a critical component of its overall growth strategy, important for both improving user experience and driving down costs. As such, these developments should be of keen interest to investors aware of the importance of tech innovation in supporting scalability and profitability in the tech and entertainment sectors.
Anghami Files 2023 Annual Report & Announces 2024 Q1 Results (Graphic: AETOSWire)
Comparing Q1 2024 to Q1 2023:
-
Premium Subscribers grew
18% reaching 1.87 million -
Total Revenues grew by
8% -
Gross Margin improved from
20% to26%
Premium Subscriber Growth and Improved Margins, Driven by a Disciplined Focus on High Quality Revenue
Anghami remains the premier MENA-based music streaming platform for listeners who want to enjoy a vast catalog of both Arabic and International music.
Anghami has achieved significant top line improvements:
-
Premium subscribers reached 1.87 million by March 31, 2024, an
18% increase compared to March 31, 2023 -
Total revenues grew by
8% , mainly driven by27% growth in subscription revenue - Anghami optimized its user acquisition and focused on high-margin direct subscription channels (mobile app stores and web)
This was coupled with further improvement on the costs side including:
- Optimization of cost of sales, through the renegotiation of several key content agreements
- Continuous streamlining of the technology backend, leading to reduction in technology costs while improving performance and scalability
- Continuous expansion of AI capabilities to enhance user recommendation engine
As a result, Operating loss improved from
Key Strategic Milestones Set to Position Anghami as a Digital Media Streaming Powerhouse
-
On April 1, 2024, Anghami successfully completed the landmark OSN+ transaction, in which OSN Group contributed to Anghami a cash investment of
$38 million -
During March 2024, Anghami successfully managed and executed one of the most anticipated concerts with Arab Megastar Amr Diab in
Abu Dhabi ,UAE , generating substantial regional excitement and media buzz. The concert coincided with the release of an Anghami-exclusive album by Amr Diab, swiftly claiming the title of the year's biggest album release and dominating the music charts. - Reiterating the achievements of 2023, Anghami accomplished several key strategic deals, including an investment from Saudi media leader SRMG, an expanded partnership with Rotana Music, and an expansion of the exclusivity agreement with Amr Diab (including four concerts in major cities across the MENA region).
Elie Habib, Co-founder, and Chief Executive Officer at Anghami, noted, "2023 was a transformative year for Anghami. We repositioned our business to boost margins and profitability and expanded our services in the region. We anticipate significant potential revenue growth following the OSN+ transaction".
Challenges and Headwinds Faced in 2023 Have Delayed Key Opportunities to 2024
Anghami’s 2023 financial performance was directly affected by the devaluation of the Egyptian currency. This was partially offset by the strong growth in premium subscribers in
In addition, the
Despite these challenges, Anghami’s core subscription business continues to deliver growth in number of subscribers, supported by the rapidly growing advertising and production segments that have delivered impressive results overcoming multiple challenges and headwinds in 2023. In addition, the substantial improvement in gross margins and the enhanced quality of revenues, position Anghami for a strong performance in 2024, as evidenced by Q1 2024 results.
Anghami’s annual report on Form 20-F (the “Form 20-F”) for the year ended December 31, 2023 was filed on April 30th, 2024, with the
About Anghami Inc. (NASDAQ: ANGH):
Anghami is the leading multi-media technology streaming platform in the
To learn more about Anghami, please visit: https://anghami.com
Cautionary Statement Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Anghami’s actual results may differ from its expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “start,” “project,” “budget,” “forecast,” “preliminary,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “continue,” “predicts,” “potential,” “transform” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside Anghami’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the outcome of any legal proceedings that may be instituted against Anghami; changes in applicable laws or regulations; and the possibility that Anghami may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties identified in Anghami’s annual report on Form 20-F filed with the
Preliminary Unaudited Results for Q1 2024
The selected preliminary unaudited results and key performance indicators included herein are based on the Company’s preliminary estimated results for Q1 2024 ended March 31, 2024 and are subject to revision based upon the completion of the Company’s Half Year 2024 financial closing processes and other developments that may arise prior to the time its financial results are finalized. The information is derived from preliminary reports which are subject to change in connection with the completion of the Company’s normal closing procedures and such changes could be material. However, management believes these preliminary unaudited results and key performance indicators are reasonable. The Company’s preliminary unaudited results and key performance indicators are forward-looking statements based solely on information available to the Company as of the date of this presentation and the Company’s actual results may differ materially from these estimates. You should not place undue reliance on these estimates.
Source: AETOSWire
View source version on businesswire.com: https://www.businesswire.com/news/home/20240502645142/en/
Investor Contact:
Mohammed Al Ogaily
Questions addressed to Anghami Investor Relations can be sent to ir@anghami.com
Middle East Media Contacts:
Media questions can be sent to press@anghami.com
Source: Anghami Inc.
