Mdundo.com A/S (NASDAQ First North Growth Markets: MDUNDO), Africa’s leading music, has announced its annual guidance for the fiscal year 2023 – 24, signalling a thrilling expansion phase due to continuous positive financial performance.

With a strong focus on key markets, groundbreaking partnerships, and innovative value-driven initiatives, Mdundo.com is set to make significant strides in the music industry.

Key Financial Highlights:

1. Impressive Growth in Monthly Active Users (MAUs): Mdundo.com aims to propel its MAUs to new heights, targeting a remarkable increase from 26 million in the previous financial year to an impressive 35 million, reflecting a notable surge of 35%. Since its IPO in 2020, Mdundo.com has experienced an astounding seven-fold growth in MAUs, solidifying its position as a leading music service in Africa.
2. Substantial Increase in Annual Revenue: The company expects a substantial increase in annual revenue, projecting a range of KSH 350 million to KSH 430 million. This demonstrates an average growth rate of 31% compared to the current financial year’s revenue expectations of KSH 270 million to KSH 330 million.
3. EBITDA Improvement: Mdundo.com aims to enhance its EBITDA performance significantly. The company foresees an improvement from an anticipated range of KSH 145 million to 175 million in the previous financial year to a range of KSH 130 million to 155 million. This represents an average increase of 11%, showcasing the company’s dedication to financial progress.

“We are thrilled to unveil our annual guidance for the fiscal year 2023-24,” said Martin Møller Nielsen, CEO at Mdundo.com. “Our focus on key markets, strategic partnerships, and user-centric initiatives has positioned us for exceptional growth and impact in the African music landscape. We are committed to connecting musicians, music enthusiasts, and industry partners while creating sustainable opportunities for the music industry across all key markets.”

Mdundo.Com records 31 million quarterly users

Mdundo.com was founded in Kenya in 2012, today, the business is a leading Pan-African music service. The service has 24.5m monthly active users, with 3m being from Kenya. The company has partnered with leading companies such as Vodacom, MTN and Airtel, Universal Music Group, and Warner Music Group.

Partnering for Success in Kenya:

Mdundo.com has solidified its market position through strategic partnerships, leveraging the strengths of prominent industry players. The company collaborates with leading Kenyan advertising agencies, including Saracen Kenya, Dentsu Kenya, and WPP-Scangroup, as well as key Kenyan record labels such as Sol Generation, Zeze Africa, Tamasha Records, and Kaka Empire. These partnerships enable Mdundo.com to amplify its reach, connect with local talent, and enrich its music library, further enhancing the user experience.

86,000 independent Kenyan musicians have Mdundo accounts:

Mdundo.com is a platform that empowers Kenyan musicians, with 86,000 musicians from Kenya having an account with the service. The company recognizes the immense talent and creativity within the Kenyan music scene and provides a platform for these artists to showcase their work to a broader audience.

Focus on Low to Mid-end Mobile Devices and Limited Data Consumption:

Mdundo.com strongly emphasises accessibility and inclusivity, aiming to make music easily and legally available to users with low to mid-end mobile devices and limited internet data consumption. By optimizing the platform’s performance for these devices, Mdundo.com ensures that users can enjoy a seamless music streaming experience, regardless of device specifications or data limitations.

Progress towards 2025 Strategy:

Mdundo.com remains firmly on track to achieve its ambitious 2025 strategy, which centres on reaching 50 million monthly active users and achieving a positive EBITDA operation.

• Focus on Nigeria, Kenya, Tanzania, Ghana, and South Africa: These key markets encompass 422.21 million people, approximately 35% of Sub-Saharan Africa’s population. They offer substantial growth opportunities due to high internet penetration rates and robust economic development. In March 2023, these markets accounted for 16.6 million of Mdundo’s 24.5 million monthly active users, with the remaining 30% distributed across secondary focus markets.

• Focus on driving value per user through telco and premium products: Mdundo.com has established music packages in collaboration with prominent telecommunications providers, including Vodacom in Tanzania, Airtel in Nigeria, and MTN in Nigeria, Ghana and South Africa. These partnerships collectively reach an extensive customer base of 185 million people, enabling Mdundo.com to address the low penetration of payment cards in Africa and deliver enhanced value to its users. The company has previously announced that revenue from these partnerships accounted for 33% of the total revenue in H1 2022-23, showing a 6x increase in the revenue line from the same period in the previous year.

• Focus on delivering locally relevant service and content: Mdundo.com strongly emphasises providing locally relevant service and content, acknowledging the significance of cultural diversity and local preferences. The platform curates a diverse range of music from various genres and local artists, ensuring an engaging and relevant experience for its users. The company has previously announced that approximately 80% of all music consumed within the focus markets is African catalog. The service is approaching 500,000 African songs directly uploaded to the service by +140,000 African creators.