Key Points of the News 👇

1. Mdundo, an Africa-focused music streaming service, experienced a 41% year-on-year increase in monthly active users (MAUs).

2. Despite the growth in MAUs, the company's revenues fell short of forecasts due to a currency crisis in Nigeria, impacting its subscription and advertising revenue growth measured in Danish kroner (DKK).

3. Nigeria's currency depreciation, particularly against the US dollar, has affected Mdundo's revenue measured in DKK but has led to revenue growth when measured in Nigerian naira.

4. Mdundo identified Nigeria as a key market alongside Kenya, Ghana, Tanzania, and South Africa, which collectively account for a significant portion of its MAUs.

5. Advertising revenue also declined, attributed to a delayed and underperforming reseller agreement.

6. Despite revenue challenges, Mdundo's user base continues to grow substantially, reaching 34.5 million MAUs by March 2024, with an expectation to hit 35 million by the fiscal year-end in June.

7. The company plans to shift focus from user acquisition to improving unit economics for its existing customer base as user growth is expected to slow down.

8. Mdundo aims for a negative EBITDA for the fiscal year ending in June, with forecasts indicating an improvement over the previous year and a positive EBITDA expected by 2025.

9. The company attributes its user growth strategy to partnerships with local wireless providers in key markets to facilitate payment for its premium product.

10. Mdundo highlighted impactful advertising campaigns with brands like Coca-Cola, Diageo, and Kenya-based NCBA, as well as initiatives to empower female artists across Africa, demonstrating its commitment to strategic partnerships and social impact.

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