Photo Credit: Anis Martin
Believe’s revenues rose 37% year-over-year in Q3, with the group increasing its full-year forecast for the second quarter in a row.The Paris-based music company Believe reports substantial revenues in Q3, generating $192 million with a 36.9% year-over-year increase in revenues. Despite the macroeconomic impact facing the broader music and entertainment industries, these increases have been relatively typical for Believe throughout the year.
While announcing its latest figures, Believe also increased its full-year forecast for the second quarter in a row. The company says that it now expects revenues by the end of December to grow by at least 30%, which, if achieved, will surpass $730 million for the first time in its history.
Believe also forecasts a slightly improved full-year EBITDA margin of around 4.5%, higher than previous expectations of the 4% margin it attained in 2021. According to Believe, the slight increase in that margin prediction essentially surrounds the costs of its “Central Platform” being adequately amortized. The company is focused on “accelerating investments” in technology and local markets, saying it remains confident in achieving its long-term target of a 15% adjusted EBITDA margin.
Additionally, Believe expects annual “positive and solid free cash flow” for full-year 2022, a prediction aided by an “annual installment” of $19 million from a digital partner via a renewed deal in Q3.
“Our Q3 performance has been again very strong, with market share gains across all our main countries on all key digital music services,” says Denis Ladegaillerie (pictured), the company’s founder and CEO. “Our unique model, built to serve artists and labels at all stages of their careers, is performing extremely well. With the increased penetration of streaming music in all markets, more and more music genres accelerate their digitalization.”
“As a digital-first music company, we are well positioned to pursue our profitable growth trajectory,” he adds. “Our expertise in maximizing audiences and monetization of labels and artists in the digital ecosystem unlocks new opportunities every day.”