France's Deezer pledges to turn a profit by 2025 – Reuters


The logo of French music streaming platform Deezer is seen before the opening bell ceremony for the company's initial public offering (IPO) at the Euronext stock exchange at La Defense business and financial district in Courbevoie near Paris, France, July 5, 2022. REUTERS/Benoit Tessier
PARIS, Sept 21 (Reuters) – French music streaming platform Deezer (DEEZR.PA)'s first-half adjusted gross profit rose 9.1% from a year earlier, led by a surge in sales in its home country that firmed up its goal to turn a profit by 2025, the company said on Wednesday.
The group, once championed in France as being one of the first and most promising so-called unicorns, companies valued at 1 billion euros or more, is striving to convince investors of its capacity to turn a profit by 2025 by focusing on key markets such as France, Brazil and Germany, and new services.
Gross profit increased to 45 million euros ($44.4 million) from 42 million a year earlier, while total sales rose by 12% over the period to 219 million euros, Deezer said in a statement.
This was mainly due to a gain in the average revenue per user (ARPU), which jumped by 12.4% to 3.9 euros. Deezer's number of direct subscribers in France, where it generates about 60% of its consolidated revenue, rose to 3.3 million from 3 million a year earlier.
Yet the total number of subscribers fell by close to 3% to 9.4 million.
"By focusing our business on large attractive markets and entering new markets with a partnership-led model, we are convinced we can capture a fair share of the booming streaming market and continue improving our profitability to reach breakeven by 2025," Chief Executive Officer Jeronimo Folgueira said.
Suffering from comparison to bigger rivals such as Spotify (SPOT.N) and Apple Music (AAPL.O), Deezer hasn't yet recovered from its painful debut on Euronext's Paris stock exchange in July, which saw its shares plummet by 35% in the first few hours after its listing. read more
The stock has lost 65% of its value since its first trading day, valuing the company at 472 million euros ($466.38 million), compared to Spotify's market capitalisation of $18.7 billion.
($1 = 1.0120 euros)
Our Standards: The Thomson Reuters Trust Principles.
Apple Inc may make one out of four iPhones in India by 2025, J.P.Morgan analysts said on Wednesday, as the tech giant moves some production away from China, amid mounting geopolitical tensions and strict COVID-19 lockdowns in the country.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2022 Reuters. All rights reserved