The French streaming music platform Deezer extended its net loss to 168 million euros in 2022, a year of a difficult start on the stock market, and began to refocus on its main market, according to its financial results published this Tuesday. The company’s net result, which amounted to 123 million euros the previous year, includes exceptional costs after the merger with the listed company I2PO.
The rival service of the giant Spotify lost some 200,000 subscribers (-2.2%) worldwide and concentrated its marketing investments in France, where its number of live users increased by 8% during the period, reaching 3, 5 million. “Most importantly, we secured financing for the company by going public over the summer and we’re back to very healthy double-digit growth,” commented Deezer CEO Jeronimo Folgueira.
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The evolution of the price, divided by more than 3 since July as a result of all the technological values, has been “disappointing”, he acknowledged, “but we believe that, if we realize [une bonne performance] and for the market to recover, there is great upside potential.” In 2022, after several price increases, Deezer’s turnover increased by 13%, to 451 million euros.
The company forecasts an annual increase in sales of more than 10% through 2025 and aims to achieve a positive operating result by then. The platform also wants to innovate and has made a significant commitment to Driift, a British specialist in the broadcast of live concerts. In June, it broadcast performances by Marseillaise rappers Jul and Gazo. The company has also launched musical contests, the translation of lyrics or the identification of a title by humming the melody.
“We have many unique features and we continue to work with labels to give artists new possibilities to monetize their audience,” explained Jerónimo Folgueira. Finally, Deezer, which generates more than 26% of its revenue through its alliances with companies and operators, plans to commercialize certain artificial intelligence services, such as music recognition or the division of music between vocal and instrumental parts.
Source: BFM TV
