Deezer Subscriptions Powered by B2B Partnerships

French streaming company Deezer's revenue rose 12.1 percent to 130.7 million euros ($141 million) in the fourth quarter, taking its full-year revenue to 484.7 million euros ($524 million), up 7.4% year-over-year, according to the company. was announced Wednesday (February 28).

Full-year adjusted earnings before interest, taxes, depreciation and amortization (ABITDA) halved to -28.8 million euros ($-31 million) and net losses fell by almost two-thirds to 59.6 million euros ( 64 million dollars).

This year, Deezer expects to achieve revenue growth of 10% — to around 533 million euros ($575 million) — and again halve adjusted ABITDA to -15 million euros ($-16.2 million) behind improved gross margins and cost controls.

The number of Deezer subscribers increased by 11.5% to 10.5 million from 9.4 million at the end of 2022. The overall gain in subscriptions came from business-to-business partnerships, which increased by 1 million to 4.8 million. Last year, Deezer launched new partnerships with home audio company Sonos, media company RTL in Germany and e-commerce company Mercado Libre in Brazil and Mexico to bolster those companies' branded music streaming services. It also renewed partnerships with mobile operator TIM in Brazil, retailer Fnac Darty in France and mobile operator Orange in France.

Average revenue per user (ARPU) from B2B subscribers increased from 2.6 euros ($2.81) to 2.8 euros ($3.03) per month. “Our partnership strategy is paying off, driving our overall growth and helping us gain market share outside of France,” CEO Jeronimo Folgueira he said in a statement.

Deezer's direct subscribers remained flat at 5.6 million, but the ARPU of those users increased from 4.7 euros ($5.09) to 4.9 ($5.31) euros per month. Last year, the company raised its monthly subscription fees in France, Spain, Italy and the Netherlands from €10.99 to €11.99 with “minimal upheaval” to its subscribers, according to the earnings release.

The company also announced Wednesday that Folgueira is leaving “to pursue personal projects.” Folgueira joined Deezer as CEO in 2021. During his tenure, Deezer went public through a merger with a special purpose buyout company, I2PO, in 2022, and formed a partnership with Universal Music Group in 2023 to to introduce an artist-centred model for royalty calculations.

Shares in Deezer rose 0.5 percent to 2.18 euros ($2.36) on Wednesday before the company released its earnings results. The stock has nearly doubled its 52-week low of €1.19 ($1.29) on April 13, 2023, but is well below its 52-week high of €3.19 ($3.46) set on November 2 2023.