earnings
Tencent Music Entertainment surpassed revenue of $1 billion in the fourth quarter, representing an 8.2% increase from the prior-year period, while net profit climbed 47.3% to $284 million.
The Chinese music streaming company operates three music streaming services — Kugou Music, QQ Music and Kuwo Music — as well as WeSing, a karaoke app. In recent years, Tencent Music’s business has become increasingly dominated by its music services as its social entertainment business continues to lose business.
Online music revenue grew 16.1% to $799 million due to music subscription gains and growth in advertising revenue, while music subscription revenue jumped 18% to $552 million in the quarter as the number of subscribers increased 13.4% to 121 million. Additionally, gross margin jumped to 43.6% in the fourth quarter from 38.3% in the prior-year period. The company attributed the improvement to strong growth in music subscriptions and advertising revenue and increased usage of owned content, as well as its adoption of the Super VIP program, a subscription tier that costs five times the normal rate. Monthly average revenue per user (ARPU) grew to 11.1 RMB ($1.52) from 10.7 RMB ($1.47) due in part to the expansion of the Super VIP membership program.
Trending on Billboard
The social entertainment business has suffered a sharp decline since the Chinese government began cracking down on the use of live-streaming apps to enable gambling in 2021. In the fourth quarter, social entertainment revenue fell 13% to $223 million and mobile monthly active users declined 21.2% to 82 million (the number stood at 223 million at the end of 2020). Monthly ARPU fell 9.7% to 70.4 RMB ($9.64), down from 172.1 RMB ($26.38) at the end of 2020, and paying users slipped 3.8% to 7.7 million.
For the full year, revenue increased 2.3% to $3.89 billion while net profit climbed 36.2% to $974 million, and gross margin improved to 42.3% from 35.3%. Online music revenue grew 25.5% to $2.98 billion while social entertainment revenue fell 36.1% to $912 million. Full-year gross margin improved to 42.3% from 35.3% in 2023.
Tencent Music Entertainment’s music platforms have evolved into one-stop shops that also include audiobooks, merchandise, downloads and live-streaming. In 2024, the company produced physical albums for Xiao Zhan and Lay Zhang and boosted album sales for Esther Yu by providing options to purchase merchandise along with her digital albums. It also partnered with the band Mayday for an online New Year’s Eve concert.
The company also announced a $273 million dividend and a share repurchase program of up to $1 billion over a two-year period that will commence this month. A $500 million share repurchase program announced in March 2023 will conclude this month.
Tencent Music Entertainment’s shares, which trade on both the New York Stock Exchange (NYSE) and the Stock Exchange of Hong Kong, had risen 15.8% to $15.12 on the NYSE at the close of trading on Tuesday.
French streaming platform Deezer reported on Tuesday it had 7 million euros ($7.6 million) in free cash flow for the fiscal year 2024, having achieved break-even status for the first time in its nearly 18-year history last fall.
Founded in August 2007, Deezer has struggled to build its brand outside of its home market in France. But in recent years, it has raised prices and expanded its subscriber-base by being the streaming platform powering German broadcaster RTL, American speaker company Sonos and Latin America’s version of Amazon, Mercado Libre.
“This is an exciting milestone, and it puts Deezer in control of its own destiny,” Deezer Chief Financial Officer Carl de Place tells Billboard on becoming cash-flow positive. “We have been able to exceed our guidance and to deliver 11.8% growth thanks to a nearly 10% increase in direct revenue from France, and the revenue from our partnerships business, which grew at 24% year over year.”
Trending on Billboard
A growing number of streaming platforms have raised prices in recent years, and Deezer was at the forefront having raised subscription prices in France, its largest market, in January 2022 and other markets later in the year. After Apple, Amazon, YouTube and Spotify all followed with their own increases, Deezer raised its prices again in September 2023.
The company reported revenue increased 12% to 542 million euros ($590.8 million), above their 10% growth target. Direct revenue in France increased 9.7% from the year ago period thanks to a 4.3% increase in subscriber revenue and greater average revenue per user (ARPU). Revenue from partners white labeling its services rose 24% year over year.
While not a profitable fiscal year, the company said it saw strong improvement. Adjusted earnings before interest tax depreciation and amortization (EBITDA) for the full year was negative 4 million euros ($4.4 million), and a 21.2% increase in its adjusted gross profit to 134 million euros ($146 million), equal to a 24.7% margin. The company had 62 million euros ($67.6 million) cash in its reserves at year end.
The company plans to double-down on its brand partnership strategy, while maintaining focus on further growing its presence in France with new features allowing users to customize their feed on the streaming platform and opportunities to more directly interact with artists, de Place says.
“Profitable growth is what you should expect going forward. We are prepared to continue to deliver positive free cash flow, to reinvest in the company and also add to our reserves,” de Place says.
Paris-based music company Believe delivered strong results in its first year as a privately held company. Full-year revenue rose 12.3% to 988.8 million euros ($1.05 billion), with 11.5% of organic growth, the company announced Thursday (March 13). Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), a common measure of profitability, improved 33.5% to 67.1 million euros ($71 million). Revenue had been up 14% at the year’s mid-point.
This year should be equally strong: Believe forecasts organic growth of 13.0% in 2025 despite “limited ad-funded streaming growth” and assuming “no significant subscription price increases” at large music streaming platforms.
Trending on Billboard
Believe’s major event of the year was a successful bid by a consortium formed by TCV funds, EQT X and CEO Denis Ladegaillerie to take the company private. The consortium owns 96.6% of Believe’s share capital, leaving the company with a small public float. After the deal was completed, Believe’s board of directors added a new director representing EQT X, former Shazam CEO Andrew Fisher. A director representing Ventech, which sold its shares to the consortium, departed the board.
The company was also active in acquiring, partnering on and launching new businesses last year. It debuted two new imprints in Asia in 2024: PlayCode in Japan and Krumulo in Indonesia. It also fully acquired Turkish record label DMC in August; launched EDM label All Night Long in partnership with artist management company Kidding Aside; acquired Indian record label White Hill Music; and formed a partnership with EDM company Global Records, in which Believe acquired a 25% stake in July.
Believe saw strong growth in both its premium solutions and automated solutions divisions. Premium solutions, which mainly consists of the sale and promotion of digital content for artists and labels, had revenue of 942.2 million euros ($997 million), up 12.0% year over year. Automated solutions fared even better, improving 17.0% to 64.6 million euros ($68 million).
Digital sales grew above 10% throughout the year. Non-digital sales, which includes music publisher Sentric Music Group, which Believe acquired in 2023, were strong until September but were hurt in the fourth quarter by accounting changes in publishing in automated solutions, which includes digital distributor TuneCore, and lower concert activity and physical sales in premium solutions.
In Believe’s home country and largest single market, France, revenues grew 10.3% to 162.9 million euros ($172 million). Non-digital sales in France fell in the fourth quarter due to a drop in concert activity. Germany, the company’s second-largest single market, was up just 0.4% to 111.3 million euros ($118 million). Non-digital sales in Germany fell due to Believe’s decision to accelerate its exit from contracts the company called “too heavily reliant on physical sales and merchandising.”
European revenues (excluding France and Germany) rose 23.3% while the Americas grew 18.0% to 151.2 million euros ($160 million), due in part to “significant progress” in the U.S. and the performance of TuneCore. Revenue growth in Asia Pacific and Africa was far softer at 3.5%, to 237 million euros ($251 million), due to weak ad-supported streaming revenues and foreign exchange changes. Paid streaming, while less valuable than ad-supported streaming in Asia Pacific and Africa, “remained solid” but was negatively impacted in India by the shutdown of the streaming platform Wynk.
Growth in recorded music, publishing and merchandise helped Universal Music Group (UMG) post strong revenue growth in both the fourth quarter and full year 2024, while cost savings from layoffs helped the company produce even better earnings gains.
Driven by an 8.2% increase in recorded music subscription revenue, full-year revenue was up 6.5% (7.6% at constant currency) to 11.83 billion euros ($12.8 billion). With a lower cost base, adjusted earnings before interest, taxes, depreciation and amortization (EDITDA) improved 13.8% to 2.66 billion euros ($2.88 billion), while adjusted EBITDA margin climbed to 22.2% from 21.3% in 2023.
During Thursday’s earnings call, CEO Lucian Grainge called 2024 “a tremendously successful year for us at UMG” and cited the company’s “healthy revenue and double-digit adjusted EBITDA growth for each and every year since 2021 when UMG became a standalone public company.” He rattled off a host of UMG’s accomplishments for the year, including having four of the top five artists on Spotify and nine of the top 10 artists — and all of the top five — on the IFPI Global Artist Chart. UMG also had the two biggest new artist breakthroughs of 2024 in Chappell Roan and Sabrina Carpenter. Roan won the Grammy for best new artist in February.
Trending on Billboard
In the recorded music segment, full-year revenue increased 5.2% (6.4% in constant currency) to 8.9 billion euros ($9.63 billion). Adjusted EBITDA climbed 11.4% to 2.28 billion euros ($2.47 billion). Streaming revenue grew 5.9% to 6.04 billion euros ($6.54 billion), with subscription revenue doing the heavy lifting, rising 8.2% while other streaming revenue — namely ad-supported streaming — fell 0.8%. Downloads and other digital revenue dropped 13.0% but accounted for just 180 million euros ($195 million), or roughly 2% of recorded music revenue. Physical revenue fell 1.6% (up 1.1% in constant currency) to 1.36 billion euros ($1.47 billion). Licensing and other revenue jumped 12.9% to 1.33 billion euros ($1.44 billion).
In music publishing, full-year revenue rose 8.4% (9.0% in constant currency) to 2.12 billion euros ($2.29 billion) and adjusted EBITDA improved 8.7% to 511 million euros ($553 million). Led by strong streaming growth, digital revenue improved 12.4% to 1.27 billion euros ($1.37 billion) and accounted for 60% of total publishing revenue. Performance revenue grew 6.3% to 442 million euros ($478 million). Synch revenue fell 0.4% to 253 million euros ($274 million). Mechanical royalties dropped 4.6% to 103 million euros ($112 million).
Full-year merchandise revenue grew 19.3% to 842 million euros ($911 million), although adjusted EBITDA declined 8.5% to 43 million euros ($47 million). UMG COO/CFO Boyd Muir said the revenue growth reflected “robust superfan demand that is driving strong growth in both direct-consumer and touring revenue.” The lower EBITDA resulted from lower-margin touring merchandise sales, said Muir, though UMG expects merchandise margins to improve as the company ramps up its direct-to-consumer business.
UMG experienced 75 million euros ($81 million) of cost savings in 2024 in the first phase of a 250-million-euro ($270 million) cost savings program. Muir said the company will provide an update on the second phase of the program at a later date and added the implementation “remains on — if not slightly ahead of — schedule.” When UMG announced its cost-savings plan in February 2024, Grainge said the redesign “carefully preserves what we’re best at: creative A&R, marketing independence, unique label brand identities” and an entrepreneurial and competitive spirit.
Cash paid for catalog acquisitions grew to 266 million euros ($288 million) in 2024 from 178 million euros ($193 million) in 2023. Last year’s figure included the acquisition of the remaining stake in RS Group in Thailand and the completion of a 2023 catalog acquisition. UMG had a busy M&A year, buying the remaining share of [PIAS] and investing in Chord Music Partners, NTWRK and Mavin Global. As a result of that activity, free cash flow fell to 523 million euros ($566 million) in 2024 from 1.08 billion euros ($1.17 billion) in the prior year.
Comprehensive fourth-quarter revenue grew 7.2% to 3.44 billion euros ($3.67 billion), or 7.9% in constant currency. Adjusted EBITDA jumped 19.1% to 799 million euros ($852 million). Adjusted EBITDA margin rose to 23.2% from 21.1%. Excluding one-time items, fourth quarter revenue was up 6.1% in constant currency. That non-recurring revenue included the 20 million euros ($21 million) of DSP catch-up income and 40 million euros ($43 million) of legal settlements.
Recorded music subscription revenue climbed 7.9% (9.0% in constant currency) in the fourth quarter, safely within the company’s prior long-term guidance of 8% to 10%, though it suffered a one-percentage-point hit from a decline in revenue from fitness platforms. Ad-supported streaming revenue fell 5.1% (4.1% in constant currency). Combined subscription and ad-supported streaming revenue grew 4.6% (5.6% at constant currency).
Sphere Entertainment reported quarterly revenue of $308.3 million, slightly lower than the year-ago period, owing to half-a-dozen fewer shows, the Las Vegas venue company reported on Monday (March 3).
Sphere — which chairman/CEO James Dolan reminded analysts on a call is still basically a brand-new company — reported an operating loss of $142.9 million, a $16.7 million improvement compared to the same quarter a year ago. Meanwhile, adjusted operating income of $32.9 million was down $18.6 million from the prior-year quarter and events-related revenue of $54.4 million was $800,000 less than the year ago period. The quarter included shows by the Eagles and Anyma as well as the Las Vegas Grand Prix, which returned to Sphere in November as part of a multi-year deal.
With additional shows from the Eagles and Anyma and upcoming residencies by country star Kenny Chesney and Backstreet Boys, Dolan said 2025 will be marked by continued demand and improved operating efficiency.
Trending on Billboard
“This year, the biggest opportunities are the nuts and bolts of how well we operate the business. That is going to provide a boost,” Dolan said on a call with analysts. “Longer term, the expansion of more Spheres is what is going to deliver the most [return].”
Sphere grossed $169 million, while MSG Networks generated $139.3 million, for the quarter ending Dec. 31. Sphere’s operating loss of $107.9 million on an adjusted basis was $800,000, while MSG Networks reported an operating loss of $35 million. On an adjusted basis, MSG reported an adjusted operating income of $33.7 million.
Advertising on the outside of Sphere, which the company calls Exosphere, plus suite license fees generated $20.3 million, a $2.7 million improvement from the prior-year quarter.
Here’s what else you need to know from the earnings call.
In addition to Sphere Abu Dhabi, the company is working on mini-Spheres.
Last fall, Sphere Entertainment announced plans for a second Sphere venue in Abu Dhabi, the capital city of the United Arab Emirates (UAE), that would be entirely funded by the UAE’s Department of Culture and Tourism. The new venue will be operated as a franchise, with Sphere Entertainment receiving a franchise initiation fee that grants Abu Dhabi the right to use the company’s intellectual property and content from The Sphere Experience, like Postcard from Earth and V-U2: An Immersive Concert Film.
As plans for Sphere in Abu Dhabi move forward, the company is exploring smaller versions of Sphere that could seat around 5,000, compared to the Las Vegas venue’s 20,000-seat design, Dolan said.
“We’re currently working on the architecture of our smaller Sphere” and identifying mid-sized cities that could present opportunities, Dolan said. “We’re looking to take advantage of the content we’ve created already and the business we’ve created already and bringing it out to other markets. Right now, we’re in the planning and design phase.”
While the cost of playing Sphere is “high” for artists, demand is higher.
Dolan acknowledged that playing Sphere, a first-of-its-kind venue, comes with a slew of costs that can set performing artists back. But acts like Chesney, who will kick off a 15-show residency in May, and Backstreet Boys, who start an 18-show residency this summer, save on the cost of touring multiple cities, Dolan said.
“We know that the content costs are high for a band, but they are offset by the fact that it’s a residency,” he said. “So a touring band has to go to 50 cities, move place to place. The bottom line for bands is they do better.”
In response to a question about the biggest opportunities ahead, Dolan said the demand from fans, artists and corporate sponsors is overwhelming. The Las Vegas venue has 55 shows planned for the first half of 2025, up from 37 in the first half of 2024.
“We have a desire to do those concerts, and artists have a desire to play the Sphere,” Dolan said. “If there is anything that is going to limit concerts, it’s probably going to be [demand].”
Expect more concert videos like the one made of U2’s Sphere show.
Dolan declined to share details about the newest The Sphere Experience, but he said it’s likely the company will do more concert films like V-U2 in the future owing to the success of that show and the low cost of creating content like it.
These films, which are akin to “attending the concert without having the band there,” cost less than $500,000 to record and create, Dolan said, adding that they have more performance recordings in the wings.
“The cost of that product is quite low, and I expect that we will continue to build up the library and that you’ll be seeing those kinds of experiences for years to come,” Dolan said.
iHeartMedia expects first-quarter revenue to decline in the low single digits and full-year revenue to be flat, suggesting the radio giant hasn’t yet turned the proverbial corner financially, according to the company’s latest earnings release. After revenue was up 5.5% in January, February is on track for a 7% decline as consumer sentiment dropped to a level not seen since 2021, CFO Rich Bressler said during Thursday’s earnings call.
The company ended 2024 with fourth-quarter revenue up 4.8% to $1.11 billion, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) spiked 18.2% to $246.2 million. Revenue growth was below the company’s previous guidance due to lower-than-expected political advertising and a slowdown in non-political advertising before the election, said Bressler.
The fires in Los Angeles created a disruption to iHeartMedia’s business in the first quarter, although CEO Bob Pittman called it “a little bit of a blip” and said a larger impact comes from people returning to work. “Traffic is getting long again, and I hate to sound cynical here, but traffic jams are our friend,” he said. “We’re a company that benefits from people with longer commutes and more time in the car.”
Mired in a weak advertising market for broadcast radio, iHeartMedia is busy finding ways to create value from its broadcast assets. To that end, in March the company will make its broadcast advertising inventory available to programmatic buyers through Yahoo DSP and Google’s DV360 ad-buying platforms. “This is a critical early step in aligning our broadcast assets with digital buying behavior,” said Pittman, “which will allow iHeart’s broadcast radio assets to participate in the growing digital and programmatic [total addressable markets].”
Last year, iHeartMedia took steps to cut costs and improve its balance sheet. The company expects to have net savings of $150 million in 2025 and beyond — $200 million from cost reductions undertaken in 2024 and an additional $50 million of expenses. In December, iHeart reduced its debt load and extended maturity dates through a debt exchange that attracted a 92.2% participation rate.
For the full year, iHeartMedia’s revenue totaled $3.86 billion, up 3% year-over-year (and flat if political advertising is excluded). Adjusted EBITDA increased 1% to $705.6 million while EBITDA margin improved to 22.0% in 2024 from 19.5% in 2023. The multiplatform group, which includes the company’s core broadcast stations, saw its revenue decline 2.6% to $2.37 billion, while the digital audio group’s revenue increased 8.9% to $1.16 billion due to increased advertising demand for podcasting. The audio and media services group had revenue of $327 million, up 27.4%.
Cumulus Media, the country’s third-largest radio company by revenue, fared a bit worse in 2024. For the full year, Cumulus’ revenue fell 2.1% to $827.1 million and adjusted EBITDA dropped 8.8% to $82.7 million. While digital revenue grew 5.3% to $154.2 million, broadcast revenue slipped 5.1% to $564.1 million. In the fourth quarter, revenue dipped 1.2% to $218.6 million and adjusted EBITDA grew 9.8% to $25 million.
Cutting costs and restructuring debt are common tactics in the radio business. Just as iHeartMedia shaved its expenses, Cumulus will realize $43 million in annualized cost savings, with $15 million of savings coming in 2024. In addition, in May, Cumulus completed a debt exchange, which lowered its outstanding debt by $33 million and extended maturity dates while securing “attractive” interest rates.
iHeartMedia shares fell 7.9% to $2.09 before earnings were released, and dropped another 9.9%, to $1.90, in after-hours trading. Through Thursday, iHeartMedia shares are down 1.9% year-to-date but have more than doubled since May 2024.
Cumulus, which reported earnings earlier in the day, saw its share price decline only 0.3% to $0.90. Year-to-date, Cumulus shares have gained 16.9%.
ASCAP, the only not-for-profit performance rights organization in the U.S., which — after covering its overhead — shells out all of its collections to songwriters and publishers, reports revenue increased 5.7% to 1.835 billion from the prior year’s total of $1.737 billion. What’s more the PRO said the amount of its collections available for distribution totaled $1.696 billion, or a 6.5% increase over 2023’s total of $1.592 billion.
Out of that collected revenue, domestic royalties totaled $1.397 billion, up 5.3% from the 2023’s total of 1.327 billion; while foreign receipts grew 6.8% to $438 million, up 6.8% from the prior year’s total of $410 million. Put another way, domestic revenue comprised 76.1% of collections while foreign receipts comprised 23.9%.
ASCAP said its compound annual growth rate (CAGR) for total revenue for the 10 years leading up to 2024 was 7%, and that the CAGR for total distributions over the same time period was 8%. Its overhead expense structure remains at about 10%.
Trending on Billboard
“For songwriters, composers and publishers, ASCAP provides the best return on their performance royalties because they get 90 cents of every dollar we collect,’ ASCAP CEO Elizabeth Matthews said in a statement. “It’s that simple. We are the only US PRO that does not take a profit and the only one that can credibly say we put creators first in everything we do.”
In 2023, BMI, ASCAP’s main competitor and the only other U.S. PRO operating under a U.S. Dept. of Justice consent decree, abandoned its not-for-profit status in order to sell to a private equity firm, which occurred in 2024 when New Mountain Capital acquired the collection society. Besides BMI, both SESAC and GMR, aka Global Music Rights, are both for-profit performance rights organizations.
Breaking out its total $1.696 billion available for distributions, ASCAP reported that $1.284 billion was due to domestic songwriters and publishers while $438 million was available for foreign distributions. Overall, its domestic collections available distribution increased 5.5% from the prior year’s total of $1.217 billion, while foreign distribution availability increased 9.8% from $375 million in 2023.
Looking at its activities over the last year, ASCAP reported that signings and renewals include Katy Perry, Timbaland, Kacey Musgraves, Jack White, Justin Tranter, Neil Young, Graham Nash, Def Leppard, Sexyy Red, Max Martin, Hans Zimmer and Tate McRae; along with with the estates of Tom Petty and Jimi Hendrix.
ASCAP said it was active in helping to shape the U.S. Copyright’s Office recommendations on legal and policy issues related to copyright and AI; and formed a strategic alliance with SACEM, France’s collection management organization, to leverage their investments in infrastructure. Finally, ASCAP reported that it moved quickly to launch a $1 million emergency relief fund to assist Los Angeles-based ASCAP songwriter affected by the LA wildfires.
“ASCAP is committed to innovating, growing and evolving in ways that benefit our members, because music creators drive every decision we make,” ASCAP president and chairman of the board Paul Williams said in a statement. “Protecting the livelihoods of songwriters and composers and defending the value of music is a mission we take seriously. For us, this is more than just business – it’s personal, and that’s what sets ASCAP apart from any other PRO.”
A busy year in high-margin amphitheaters and arenas pushed concert promoter Live Nation to a record $2.15 billion in adjusted operating income (AOI) in 2024, up 14%, on record revenue of $23.16 billion, up 2%.
In the concerts division, full-year revenue rose 2% to $19.02 billion. Despite having 30% fewer stadium shows in 2024, the total number of fans grew to a record 151 million from more than 50,000 Live Nation events. A heavy slate of concerts at arenas and amphitheaters, where Live Nation can offer VIP experiences and capture more revenue from food and beverage sales, helped AOI climb 65% to $529.7 million and AOI margin — AOI as a percentage of revenue — reach a record 2.8%.
Ticketing revenue for the full year increased 1% to $2.99 billion while AOI dropped 1% to $1.12 billion. Ticketmaster had 23 million net new enterprise tickets that were signed in 2024, with two-thirds coming from international markets.
Trending on Billboard
Sponsorships and advertising revenue grew 9% to $1.2 billion and AOI rose 13% to $763.8 million. Led by festivals in Latin America and Europe, international markets were up double digits. The number of new clients increased 20%.
Live Nation is expecting 2025 will top its record-setting 2024. Through mid-February, stadium shows are up 60% from the prior-year period and 65 million tickets have been sold for Live Nation concerts, a double-digit annual increase. Ticketmaster’s transacted ticketing revenue for 2025 shows is up 3% to 106 million tickets, due mainly to an increase in concert demand.
The current year “is shaping up to be even bigger thanks to a deep global concert pipeline, with more stadium shows on the books than ever before,” CEO Michael Rapino said in a statement. Currently, Live Nation’s stadium tours for 2025 include Beyoncé’s Cowboy Carter tour, Morgan Wallen’s I’m The Problem Tour, Kendrick Lamar and SZA’s Grand National Tour, and Post Malone and Jelly Roll’s Big Ass Stadium Tour.
Consolidation fourth-quarter revenue dropped 2% to $5.68 billion as concerts revenue dipped 6% to $4.58 billion and ticketing and sponsorships and advertising grew 14% and 10%, respectively. Fourth-quarter AOI fared better, however, rising 35% to $157.3 million despite concerts AOI falling 16%.
Cloud Music’s revenue from subscriptions grew 22.2% year over year, helping the Chinese music streaming company post a 113% increase in profit, to 1.7 billion RMB ($233.4 million), as revenue increased by only 1%, to 7.95 billion RMB ($1.09 billion), the company announced Thursday (Feb. 20). Revenue from online music services increased 23.1% to 5.35 […]
Music streaming company LiveOne saw its revenue drop 6% to $29.4 million in its fiscal third quarter ended Dec. 31, the company announced Thursday (Feb. 13). Revenue in the audio division fell 1% to $27.1 million. The drop led LiveOne’s operating loss to widen to $5.1 million from $800,000 in the prior-year period.
In the nine-month period, LiveOne’s revenue of $95.1 million was up 8.7% from the prior-year period. Operating loss in the period more than doubled, however, to $7.3 million from $3.5 million.
LiveOne, which has both a Slacker-branded music streaming service and numerous business-to-business relationships, ended the quarter with 800,000 Tesla “subscribers” — 475,000 of which are ad-supported. The company used to have preferred status with Tesla, powering the in-auto music streaming app that was free to Tesla owners, but that relationship changed in 2024. Now, LiveOne is no longer free to Tesla owners, although the electric vehicle manufacturer will continue to pay grandfathered LiveOne accounts in perpetuity.
Trending on Billboard
Now, LiveOne sells discounted packages to Tesla owners. “The conversion opportunity has enormous upside by offering Tesla owners an opportunity to upgrade and have access on all devices at discounted priority pricing,” LiveOne CEO Robert Ellin said in a statement in October. “We’ll drive growth, unlock new revenue streams, own our data, and increase ARPU [average revenue per user].”
But the third-quarter decline caused LiveOne to lower its expectations for the full year. While announcing earnings, the company updated its guidance for full-year revenue and adjusted earnings before interest, taxes, depreciation and amortization. LiveOne now expects revenue for the full fiscal year ending March 31 to be $112 million to $120 million, down from $120 million to $135 million. Adjusted EBITDA is expected to be $6 million to $10 million compared to previous guidance of $8 million to $15 million.
The revised guidance caused LiveOne shares to fall 18.6% to $0.96 on Thursday. That put LiveOne’s share price 55% below its 52-week high of $2.15.
On Wednesday (Feb. 12), PodcastOne –which LiveOne spun off in 2023 while retaining approximately 72% of its outstanding shares — announced that quarterly revenue increased 22% to $12.7 million and net loss narrowed to $1.6 million from $2.6 million.