Anghami, the leading company in music streaming and entertainment in the Middle East and North Africa region, has released its annual report for the fiscal year ending in December of last year, in accordance with the 20-F form.
Anghami has announced the unaudited preliminary results for the first quarter of 2024, ending in March of the current year, compared to the same period last year.
The performance indicators showed an 18% growth in premium subscribers, reaching 1.87 million subscribers in the current quarter, with a total revenue increase of 8% and an improvement in gross margin from 20% to 26%.
The increase in premium subscribers and improved margins reflect the company’s disciplined focus on high-quality revenue.
Anghami remains the primary platform for music streaming in the Middle East and North Africa, catering to listeners interested in a wide range of Arabic and international music.
Anghami has made significant improvements in revenue, with premium subscribers reaching 1.87 million in March of last year, a 18% increase compared to the same month of the previous year. Total revenue increased by 8%, primarily due to subscription revenue growth by 27%.
The company has focused on user acquisition and direct subscription channels with high margins (mobile app stores and web), as well as cost improvement by renegotiating several key content agreements.
An ongoing simplification of the technological infrastructure has led to reduced technology costs while improving performance, scalability, and deploying artificial intelligence capabilities to enhance user recommendations.
As a result, operating losses improved from $5.4 million to $2.7 million, indicating progress towards profitability.
Key strategic achievements expected to position Anghami as a major force in digital media streaming include the completion of the historic OSN+ deal in early April.
OSN Group provided a cash investment of $38 million, the OSN+ brand, video streaming business for OSN+, and associated paying subscribers and recurring revenues. This deal will transform Anghami into a digital powerhouse integrating seamlessly music and video streaming services.
In March of last year, Anghami successfully managed and executed one of the most anticipated concerts with the legendary Arab star Amr Diab in Abu Dhabi, United Arab Emirates, generating significant regional excitement and media attention.
The concert coincided with the exclusive release of Amr Diab’s album on Anghami, quickly earning the title of the biggest album release of the year and dominating music charts.
Anghami continued its achievements in 2023 through several key strategic deals, including an investment from Saudi media leader SRMG, an extensive partnership with Rotana Music, and expanding the exclusivity agreement with Amr Diab (including four concerts in major cities across the Middle East and North Africa).
Eli Habib, co-founder and CEO of Anghami, said, “2023 was a transformative year for Anghami. We realigned our operations to enhance margins, profitability, and expand our services in the region.
We anticipate significant revenue growth following the OSN+ deal.”
Challenges and headwinds faced by Anghami in 2023 deferred key opportunities to 2024:
The devaluation of the Egyptian currency directly impacted Anghami’s financial performance in 2023. This was partially compensated by strong growth in premium subscribers in Egypt, the company’s primary market in the Middle East and North Africa.
The conflict in Gaza resulted in significant disruption to advertising activities and live events in the fourth quarter of 2023, leading to the postponement of many major projects and events until 2024.
Anghami’s core subscription business continues to record growth in subscriber numbers, with rapid growth in advertising and production sectors achieving remarkable results despite multiple challenges in 2023.
Furthermore, significant improvement in overall margins and enhanced revenue quality position Anghami to deliver strong performance in 2024, as evidenced by the first quarter results of 2024.
