Believe Reports Strong $248M in Quarterly Revenue Despite Slower Organic Growth
Written by djfrosty on April 24, 2024
Believe reported strong first-quarter revenues of €230.3 million ($248.5 million) on Wednesday (April 24) despite foreign exchange fluctuations that led to slower organic growth compared to the final quarter of last year.
The company reported an adjusted organic growth rate of 16.1%, which was in line with guidance, although down from 21.8% adjusted growth in the fourth quarter of 2023.
Executives said they are expecting organic revenue growth of around 18% for the year thanks to the trickle-down benefit of higher subscription fees on digital streaming platforms and a rebound in ad-funded streaming in emerging markets in the second half of the year.
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“Our growth has been driven by our ability to grow our roster label and partners,” founder/CEO Denis Ladegaillerie said on a conference call with analysts. Some of the company’s top signings in the quarter included the German hip-hop act Hava & Dadan, Indian Punjabi artists Ninja and Parmish Verma, and the Regional Mexican group Mexican Montez de Durango.
The Paris-based music company also provided an update on the timeline to take Believe private via a consortium of buyers, which includes Ladegaillerie.
“It is probable that it is going to happen in the next few days,” Xavier Dumont, Believe’s CFO/chief strategy officer said on a conference call discussing the company’s earnings on Wednesday. “This is going to be reviewed by market authorities before (proceeding with) the rest of the process.”
Warner Music Group (WMG) decided not to submit a formal offer to acquire Believe after the company previously said it was considering bidding 17 euros per share, or roughly 1.65 billion euros ($1.8 billion). On Friday (April 19), Believe’s board of directors said it unanimously supported the consortium’s offer.
Following that announcement, the consortium said it was in the process of acquiring nearly 72% of shares from certain long-time investors and that it would submit a formal tender offer for the remaining shares once those acquisitions closed.
Executives were not asked to comment on WMG’s decision not to submit an offer.