Anghami Files 2023 Annual Report And Announces Preliminary Q1 2024 Results; Premium Subscribers Grew 18% Reaching 1.87M; Total Revenues Grew By 8%; Gross Margin Improved From 20% To 26%

Author: Benzinga Newsdesk | May 02, 2024 09:49am

Anghami Inc. (NASDAQ:ANGH), the leading streaming platform for music and entertainment in the Middle East and North Africa region, filed its annual report on April 30th, 2024, under Form 20-F for the fiscal year ending December 31, 2023 and announced unaudited preliminary results for Q1 2024, ending March 31, 2024.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240502645142/en/

Comparing Q1 2024 to Q1 2023:

Premium Subscribers grew 18% reaching 1.87 million
Total Revenues grew by 8%
Gross Margin improved from 20% to 26%

Premium Subscriber Growth and Improved Margins, Driven by a Disciplined Focus on High Quality Revenue

Anghami remains the premier MENA-based music streaming platform for listeners who want to enjoy a vast catalog of both Arabic and International music.

Anghami has achieved significant top line improvements:

Premium subscribers reached 1.87 million by March 31, 2024, an 18% increase compared to March 31, 2023
Total revenues grew by 8%, mainly driven by 27% growth in subscription revenue
Anghami optimized its user acquisition and focused on high-margin direct subscription channels (mobile app stores and web)

This was coupled with further improvement on the costs side including:

Optimization of cost of sales, through the renegotiation of several key content agreements
Continuous streamlining of the technology backend, leading to reduction in technology costs while improving performance and scalability
Continuous expansion of AI capabilities to enhance user recommendation engine

As a result, Operating loss improved from $5.4 million to $2.7 million, reflecting progress towards profitability.

Key Strategic Milestones Set to Position Anghami as a Digital Media Streaming Powerhouse

On April 1, 2024, Anghami successfully completed the landmark OSN+ transaction, in which OSN Group contributed to Anghami a cash investment of $38 million, the OSN+ brand, the OSN+ video streaming business and associated paid subscribers and associated recurring revenue. This transaction will transform Anghami into a digital entertainment powerhouse that seamlessly integrates both music and video streaming services.
During March 2024, Anghami successfully managed and executed one of the most anticipated concerts with Arab Megastar Amr Diab in Abu Dhabi, UAE, generating substantial regional excitement and media buzz. The concert coincided with the release of an Anghami-exclusive album by Amr Diab, swiftly claiming the title of the year's biggest album release and dominating the music charts.
Reiterating the achievements of 2023, Anghami accomplished several key strategic deals, including an investment from Saudi media leader SRMG, an expanded partnership with Rotana Music, and an expansion of the exclusivity agreement with Amr Diab (including four concerts in major cities across the MENA region).

Elie Habib, Co-founder, and Chief Executive Officer at Anghami, noted, "2023 was a transformative year for Anghami. We repositioned our business to boost margins and profitability and expanded our services in the region. We anticipate significant potential revenue growth following the OSN+ transaction".

Challenges and Headwinds Faced in 2023 Have Delayed Key Opportunities to 2024

Anghami's 2023 financial performance was directly affected by the devaluation of the Egyptian currency. This was partially offset by the strong growth in premium subscribers in Egypt, a key market in the MENA region.

In addition, the Gaza war significantly disrupted advertising activities and live events in Q4 2023, resulting in the postponement of several key projects and events until 2024.

Despite these challenges, Anghami's core subscription business continues to deliver growth in number of subscribers, supported by the rapidly growing advertising and production segments that have delivered impressive results overcoming multiple challenges and headwinds in 2023. In addition, the substantial improvement in gross margins and the enhanced quality of revenues, position Anghami for a strong performance in 2024, as evidenced by Q1 2024 results.

Anghami's annual report on Form 20-F (the "Form 20-F") for the year ended December 31, 2023 was filed on April 30th, 2024, with the U.S. Securities and Exchange Commission. The Form 20-F can be accessed by visiting either the SEC's website at www.sec.gov or the Company's website at https://www.anghami.com/investors .

Preliminary Unaudited Results for Q1 2024

The selected preliminary unaudited results and key performance indicators included herein are based on the Company's preliminary estimated results for Q1 2024 ended March 31, 2024 and are subject to revision based upon the completion of the Company's Half Year 2024 financial closing processes and other developments that may arise prior to the time its financial results are finalized. The information is derived from preliminary reports which are subject to change in connection with the completion of the Company's normal closing procedures and such changes could be material. However, management believes these preliminary unaudited results and key performance indicators are reasonable. The Company's preliminary unaudited results and key performance indicators are forward-looking statements based solely on information available to the Company as of the date of this presentation and the Company's actual results may differ materially from these estimates. You should not place undue reliance on these estimates.

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