Anghami Abu Dhabi’s first half revenue up 29% on subscriber growth

Anghami, music in the Arab world stream media competitor Spotifyreported a 29% increase in first-half revenue as its user base continued to grow.

Revenue climbed to $21.1 million for the six-month period to the end of June, Abu Dhabi-based Anghami said in a statement on Tuesday.

The number of active users grew 46% annually to 19.5 million. The company’s monthly paying user base grew 41% year over year to 1.28 million.

Anghami said the half-year growth was mainly driven by “improved conversion rates from ad-supported users to paying users, and an increase in the number of active users,” which led to higher advertising and subscription revenue.

However, overall revenue in the first half was impacted by a negative foreign exchange impact of $3.5 million, excluding revenue that increased more than 50% annually at constant exchange rates.

“The first-half results should lead to a record year for Anghami in 2022,” said co-founder and CEO Eddy Maroun.

Anghami, which went public in February, reported an operating loss of $13.6 million last year due to the “substantial cost” of licensing content and paying royalties to music labels. However, the company’s revenue rose 23% in the first quarter of this year, thanks to an increase in its premium user base.

The company distributes its apps through smartphone and tablet app download stores managed by Amazon, Apple, Google, Microsoft and others, and said Arabic-language content is key to Anghami’s growth.

During the first half of the year, Anghami announced several transactions to strengthen its position as the leading provider of digital Arab content and entertainment in the Middle East and North Africa.

In February, the company announced an exclusive partnership with Egyptian singer Amr Diab, the most trafficked artist on the Anghami platform, bringing his entire audio and video catalogue and future releases exclusively to its platform.

“We continue to listen to our loyal users by expanding our local Arabic content and improving our technology-enabled digital streaming platform,” Mr Maroun said.

“These are the key drivers for maintaining Anghami’s leadership in Arabic music [industry]. “

Last month, Anghami acquired Spotlight Events, a company specializing in creating and managing live events and concerts in the Mena area, to help create one of Mena’s top digital entertainment platforms. It is currently planning more than 10 concerts this year.

The total number of music streams on Anghami’s platform hit a record high in the first half of 2022, driven by Anghami’s investment in Arabic content. Arabic music streams accounted for nearly 60% of the total, up 20% year-over-year. The company said annual growth.

F Jacob Cherian, Co-CEO of Anghami, said: “Anghami remains committed to launching more innovative products, expanding its global reach and creating value for customers.

“We believe this positive trajectory will continue into 2022 as we benefit from our growing partnerships and offerings.”

As part of the Abu Dhabi Investment Office’s $545 million innovation programme, Anghami has partnered with 41 telecom operators in the region, establishing its global base and R&D centre in the Abu Dhabi Global Market last year.

Adio provides Anghami with the financial and other incentives set up at ADGM, giving it access to a competitive talent pool and mature infrastructure.

Updated: August 16, 2022 at 10:16 am