4.5.2021 09:31:31 CEST | Mdundo.com A/S |
Periodeoplysning
Tredje kvartal 2020/21 (januar – marts 2021) startede med implementeringen af Selskabets første tele-partnerskabsaftale med Vodacom Tanzania. I løbet af tredje kvartal har Selskabet opbygget en stærk pipeline og forventer implementering af yderligere 3-4 tele-partnerskabsaftaler inden udgangen af kalenderåret 2021, heraf minimum en i løbet af fjerde kvartal 2020/21.
Selskabsmeddelelse nr. 6-2021
Highlights:
Mdundo indgik første tele-partnerskabsaftale med Vodacom Tanzania i januar 2021. I løbet af tredje kvartal har Selskabet opbygget en stærk pipeline og forventer implementering af yderligere 3-4 tele-partnerskabsaftaler inden udgangen af kalenderåret 2021, heraf minimum en i løbet af fjerde kvartal 2020/21, hvilket understøtter Mdundos mission om at blive den primære panafrikanske musikplatform.
41% vækst i månedlige aktive brugere fra regnskabsårets start (5,0 mio.) til udgangen af tredje kvartal (marts 7,1 mio.). Væksten fra 2. til 3. kvartal var begrænset, men på linje med forventningerne i Selskabets halvårsmeddelelse.
Mdundo har indgået aftaler med tre af Afrikas førende pladeselskaber: Davido Music Worldwide, Jungle Entertainment og Keyqaad. Davido vurderes pt. at have 20% af Top 50 music-hits i Nigeria. Aftalerne er stadig under implementering, hvorfor forventede effekter på antal månedlige aktive brugere endnu ikke er synlige i tredje kvartalstallene.
Bestyrelsen har indstillet yderligere to stærke profiler til bestyrelsen, som forventes valgt ind på Selskabets ekstraordinære generalforsamling d. 12. maj 2021. Begge kandidater (Joseph Hundah og Kris Senanu) har stor erfaring med teleselskabsaftaler på tværs af Afrika. Selskabet vurderer, at begge profiler vil styrke bestyrelsen og bidrage signifikant til Selskabets vækstrejse – både bruger- og indtjeningsmæssigt.
Stærk likviditet med DKK 32,9 mio. i bankindeståender ved kvartalets udgang.
I løbet af kvartalet har Mdundos salgsteam i Kenya lukket B2B reklameaftaler med globale og panafrikanske brands som fx Safaricom, Airtel, 9mobile, Diageo og Diamond Trust Bank. Antallet af aftaler er dog lavere end forventet.
Outlook:
Mdundo har tidligere meddelt, at antallet af månedlige aktive brugere forventes at stige til ca. 8,5-9,0 mio. ved udgangen af regnskabsåret 2020/21 og 18 mio. i juni 2022. Dette forventes stadig. Væksten fra 3. til 4. kvartal forventes drevet af kampagner målrettet brugere hos Selskabets nuværende og kommende teleselskabspartnere og at resultere i en vis andel betalende brugere. Det specifikke antal brugere og andelen som er betalende brugere afventer dog implementering og erfaring med enhedsøkonomien på at erhverve og tjene penge på brugerne under kommende aftaler.
Selskabets har tidligere guidet et EBITDA for regnskabsåret 2020/21 på DKK -13,1 mio. Forventningen justeres til et væsentligt bedre EBITDA på minus DKK 8-9 mio. Dette skyldes hovedsageligt lavere investeringer i international musik end tidligere forventet og mere fokus på afrikanske pladeselskaber. Ligeledes justeres forventningerne til Selskabets omsætning i regnskabsåret 2021/22 til DKK 2,2 – 2,5 mio. mod tidligere forventning på DKK 4,1 mio. Dette skyldes dels et lavere aktivitetsniveau og dels et påvirket B2B marked i Kenya pga. Covid19 nedlukninger i 3. kvartal. Niveauet forventes at stige igen når restriktionerne i landet lempes.
Mdundo forventer yderligere 3-4 tele-partnerskabsaftaler inden udgangen af kalenderåret 2021, heraf minimum en i løbet af fjerde kvartal 2020/21, hvilket understøtter 1) Mdundos mission om at blive den primære panafrikanske musikplatform og 2) at opnå en større andel betalende brugere over tid.
Management review:
Nye teleselskabspartnerskaber i pipeline: Mdundo indgik første tele-partnerskabsaftale med Vodacom Tanzania i januar 2021. I løbet af tredje kvartal har Selskabet opbygget en stærk pipeline og forventer implementering af yderligere 3-4 tele-partnerskabsaftaler inden udgangen af kalenderåret 2021, heraf minimum en i løbet af fjerde kvartal 2020/21. Teleselskabspartnerskaber er en stor prioritet i Mdundo’s vækst- og indtjeningsstrategi. Partnerskabet giver teleselskabets kunder mulighed for at abonnere på en ”Mdundo-pakke”, som udover adgang til Mdundo Premium, bl.a. også giver adgang til DJ mixes produceret eksklusivt til ”Mdundo-pakken”. Abonnenten opkræves en daglig betaling og produktet markedsføres i samarbejde med teleselskabet.
Stærk vækst i musikkataloget: Mdundo har indgået aftaler med tre af Afrikas førende pladeselskaber: Davido Music Worldwide, Jungle Entertainment og Keyqaad. I tredje kvartal steg det samlede katalog med 19% til ca. 270.000 sange fra afrikanske partnere og 1,7 mio. sange fra internationale partnere. Aftalerne er stadig under implementering, hvorfor forventede effekter på antal månedlige aktive brugere endnu ikke er synlige i tredje kvartalstallene. Selskabet har ikke indgået nye partnerskaber med nye internationale pladeselskaber siden starten af regnskabsåret, da parterne endnu ikke har fundet en finansiel holdbar model. Som et resultat heraf har Selskabet investeret mindre i erhvervelse af musik i regnskabsåret end forventet.
Brugervækst on track: Mdundo opnåede 41% vækst i månedlige aktive brugere fra regnskabsårets start (5,0 mio.) til udgangen af tredje kvartal (marts 7,1 mio.). Væksten fra 2. til 3. kvartal var begrænset, men på linje med forventningerne i Selskabets halvårsmeddelelse. Marketing-teamet har lanceret nye content-marketing initiativer inden for audio, tekst og brugerfokuseret indhold i tredje kvartal og en medie-kampagne blev eksekveret i marts måned i Tanzania med fokus på promovering af Mdundo og Vodacom abonnementspakken. En lignende kampagne forventes gennemført i andre nøglemarkeder i forlængelse af implementeringen af nye teleselskabspartnerkaber.
Mdundo Brand Lift Tool til reklame-kunder: Selskabet har lanceret et nyt værktøj til B2B reklame-kunder, som findes på www.mdundoforbrands.com. Værktøjet giver marketingafdelinger mulighed for at undersøge brand-performance data næsten realtime inden for Mdundos brugere. I tredje kvartal har Mdundos salgsteam lukket reklameaftaler med globale og panafrikanske brands som fx Safaricom, Airtel, 9mobile, Diageo (Guiness og Chrome) og Diamond Trust Bank. Antallet af lukkede salg i perioden er dog lavere end forventet. Dette skyldes dels et lavere aktivitetsniveau og dels et påvirket B2B marked i Kenya pga. Covid19 nedlukninger i tredje kvartal.
Kontakter
Jesper Vesten Drescher, Bestyrelsesformand/Chairman of the board, +4523229900, ir@mdundo.com
Om Mdundo.com A/S
Mdundo er en ledende musiktjeneste i Afrika med millioner af brugere som streamer og downloader via vores hjemmeside og app hver eneste måned. Vores ambition er at give Afrikas millioner af internetabonnementer nem adgang til musik samt bidrage til struktur, legalitet og omsætning til musikindustrien. Mere: https://mdundo.com/
Mdundo.com A/SJagtvænget 22920 Charlottenlundwww.mdundo.com
Certified Adviser Kapital Partner ApSJernbanegade 41608 København V+45 89 88 78 46www.kaptalpartner.dk
Vedhæftninger
Download selskabsmeddelelse.pdf
Mdundo Report 3rd Quarter 2020-21 EN.pdf
4.5.2021 09:31:31 CEST | Mdundo.com A/S |
Interim information
The third quarter of FY20/21 (from January to March ’21) started with the implementation of the company's first telecommunications partnership agreement with Vodacom Tanzania. During the third quarter, the company has built up a strong telco pipeline and are expecting to implement an additional 3-4 telecommunications partnership agreements before the end of the calendar year 2021, of which at least one during the fourth quarter 2020/21.
Company Announcement no 6-2021
Highlights:
Mdundo entered into the first telecommunications partnership agreement with Vodacom Tanzania in January 2021. During the third quarter, the company has built a strong pipeline and are expecting to implement another 3-4 telecommunications partnership agreements before the end of the calendar year 2021, of which at least one during fourth quarter 2020/21, supporting Mdundo’s mission to become the primary Pan-African music platform.
41% growth in monthly active users from the start of the financial year (5.0 million) to the end of the third quarter (March 7.1 million). Growth from the 2nd to the 3rd quarter was limited, but in line with expectations in the company’s half-year announcement.
Mdundo has entered into licensing agreements with three of Africa’s leading record labels: Davido Music Worldwide (DMW), Jungle Entertainment and Keyqaad. DMW currently has an estimate of 20% of Top 50 music hits in Nigeria. The agreements are still being implemented and the expected effect on the number of monthly active users are therefore not yet visible in the third quarter figures.
The Board of Directors has proposed two strong profiles for the Board of Directors, they are expected to be elected into the Board at the company’s extraordinary general meeting on 12 May 2021. Both candidates (Joseph Hundah and Kris Senanu) have extensive experience with telecommunications company partnerships across Africa. The company anticipates that both profiles will strengthen the Board of Directors and make a significant contribution to the company’s growth journey – both in terms of users and earnings.
Strong liquidity of DKK 32.9 million in bank deposits at the end of the quarter.
During the quarter, Mdundo’s sales team in Kenya closed B2B advertising agreements with global and pan-African brands such as Safaricom, Airtel, 9mobile, Diageo and Diamond Trust Bank. However, the number of agreements is lower than expected.
Outlook:
Mdundo has previously announced that the number of monthly active users is expected to grow to approx. 8.5-9.0 million at the end of the 2020/21 financial year and 18m monthly active users by June 2022. This is still the expectation. The growth from the 3rd to the 4th quarter is expected to be driven by campaigns targeted at users of the company’s current and future telecom partnerships and to result in a number of paying users. However, the specific number of users and the proportion of paying users is awaiting implementation and further understanding of the unit economy to acquire and monetize users under future agreements.
The company has previously indicated an EBITDA for the financial year 2020/21 of DKK -13.1 million. The expectation is adjusted to a significantly better EBITDA of minus DKK 8-9 million. This is mainly due to lower investment in international music than previously expected and more focus on African record companies. The expectations for the Company’s revenue in the financial year 2021/22 are also adjusted to DKK 2.2 – 2.5 million against previous expectations of DKK 4.1 million. This is partly due to a lower level of activity and partly to an affected B2B market in Kenya due to Covid19 closures in the third quarter. The level is expected to rise again when restrictions in the country are eased.
Mdundo expects additionally 3-4 telecommunications partnership agreements before the end of the calendar year 2021, of which at least one during the 4th quarter of 2020/21. This supports 1) Mdundo’s mission to become the primary pan-African music platform and 2) to achieve a larger share of paying users over time.
Management review:
New telco partnerships in pipeline Mdundo announced a partnership with Vodacom Tanzania in January 2021 and throughout Q3 the company has expanded the partnership pipeline further and is expecting to launch an additional partnership in Q4 and a total of 3-4 partnerships within 2021. Telco partnerships is a strong focus for Mdundo’s growth and monetisation strategy, the partnerships allow the telco’s customers to subscribe to Mdundo bundles providing access to Mdundo Premium as well as exclusively curated DJ mixes only available for paying subscribers. The customer will pay a daily fee for the subscription and the product is co-marketed in collaboration with the telco partner.
Strong Catalogue Growth: Mdundo has established partnerships with three of Africa’s leading record labels, Davido Music Worldwide, Keyqaad and Jungle Entertainment. In this 3rd quarter, total Mdundo catalogue grew by 19% to 279,000 songs from African partners and 1.7m songs from international partners. The agreements are still under implementation meaning the potential effect in user-numbers are not reflected in Q3 figures. The company has not established any new partnerships with international record labels since beginning of the financial year as the parties have not found a financially sustainable partnership model yet. As a result, the company has invested less in content acquisition in the financial year than expected.
User growth on track: The company has grown 41% from 5.0m monthly active users in the beginning of the financial year to 7.1m monthly active users in March. The user growth in Q3 was limited but in line with the expectations set in the half-year report. The marketing department has launched new content marketing initiatives within audio, written and curated content and a media campaign was launched in the month of March in Tanzania promoting the Mdundo and Vodacom bundle partnership. A similar promotion is expected in other key markets following closing of new telco-partnerships.
Mdundo Brand Lift Tool for Ad-clients: The company has launched a new tool for ad-clients on www.mdundoforbrands.com that allows marketers to explore near real-time data of brand performance within the Mdundo audience. During the quarter, Mdundo’s sales team has closed advertisement deals with global and pan-African brands like Safaricom, Airtel, 9mobile, Diageo (Guinness and Chrome) and Diamond Trust Bank. The number of closed sales were however lower than expected partly due to lower level of activity in general and partly due to Covid19 lock-down restrictions in the main B2B sales market, Kenya.
Contacts
Jesper Vesten Drescher, Bestyrelsesformand/Chairman of the board, +4523229900, ir@mdundo.com
About Mdundo.com A/S
Mdundo is a leading music service for Africa with millions of people streaming and downloading music from our app and website every month. We aim to provide Africa’s millions of internet users with easy access to music whilst contributing structure, legality, and income to the sector. More info: https://mdundo.com/
Mdundo.com A/SJagtvænget 22920 Charlottenlundwww.mdundo.com
Certified Adviser Kapital Partner ApSJernbanegade 41608 København V+45 89 88 78 46www.kaptalpartner.dk
Attachments
Download announcement as PDF.pdf
Mdundo Report 3rd Quarter 2020-21 EN.pdf
