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Anghami’s Explosive Growth: 17% Surge in Subscribers Revealed in Q3 2023!

Anghami's Explosive Growth: 17% Surge in Subscribers Revealed in Q3 2023!

In the fast-paced world of music and entertainment streaming, one company stands out, revolutionizing the Middle East and Africa industry (MENA). Anghami Inc. (NASDAQ: ANGH), often hailed as the MENA’s music streaming giant, has been making waves with its impressive growth, strategic innovations, and a commitment to delivering exceptional content and experiences to its ever-expanding user base.

An Overview of Anghami’s Q3 2023 Performance

The third quarter of 2023 brought forth a plethora of milestones and achievements for Anghami Inc., solidifying its position as a digital media streaming powerhouse in MENA. Let’s delve into the key highlights of Anghami’s performance during this period.

Robust Growth and Financial Highlights

Anghami’s financial report for the 9 months ending September 30, 2023, showcases a remarkable journey of growth and profitability.

  1. 17% Surge in Subscribers: Anghami witnessed a staggering 17% growth in its subscriber base, a testament to its increasing popularity among music enthusiasts across MENA.
  2. 8% Boost in Adjusted Revenue: The company reported an impressive 8% increase, indicating a healthy financial trajectory.
  3. Gross Profit Margin Soars to 22%: A major highlight of Anghami’s performance is the substantial improvement in Gross Profit margin, which reached an impressive 22%.

Enhanced Performance within Core Business Segments

Anghami’s strategic focus on core business segments has yielded significant results. Let’s explore these segments in detail.

  1. Direct Subscriptions Flourish: Revenue from direct subscriptions (including app stores and web) grew by 17% year-over-year (Y/Y), demonstrating the success of Anghami’s direct channel strategy.
  2. Telco Channels Realignment: While revenue from Telco channels decreased by 21% Y/Y, this decline was part of Anghami’s strategic realignment to prioritize direct channels, offering improved margins, favourable collection terms, and currency fluctuation protection.
  3. Anghami Gold: On August 7, 2023, Anghami introduced a groundbreaking subscription plan, Anghami Gold, enriching user experiences with AI-powered music and podcast enhancements.
  4. Vodafone Egypt Partnership: In October 2023, Anghami strengthened its partnership with Vodafone Egypt, doubling its revenue potential and safeguarding against currency devaluation.

Advertising Revenue Surge

Anghami’s advertising revenue grew substantially, driven by strategic initiatives and partnerships.

  1. Anghami Studios Success: The expansion and achievements of Anghami Studios, the company’s production unit, have contributed significantly to the growth in advertising revenue.
  2. Improved Commercial Terms: Enhanced commercial terms and extended collaborations with advertising partners have driven growth within the core in-app advertising business.

Cost Efficiency and Profitability

Anghami’s relentless pursuit of efficiency and profitability has been a pivotal factor in its success.

  1. Technology and Infrastructure Optimization: The company achieved significant cost reductions in technology and infrastructure thanks to continuous backend enhancements.
  2. Marketing Spend Optimization: Anghami trimmed selling and marketing expenses through optimized growth marketing strategies.
  3. Workforce Optimization: Salaries and related benefits witnessed a remarkable 15% Y/Y reduction following a strategic reduction in workforce size.
  4. Scalability without Sacrificing Quality: Despite cost reductions, Anghami maintained its subscriber growth by improving platform scalability, ensuring that quality remains uncompromised.

Exclusive Partnership with Amr Diab

Anghami’s unique collaboration with megastar Amr Diab sets it apart from competitors.

  1. Expanding Exclusive Agreement: On May 18, 2023, Anghami expanded its flagship exclusive agreement with Amr Diab, offering regional audiences exclusive premium content and live concerts.
  2. Upcoming Concert Tour: The collaboration includes four live concerts across key cities in MENA, set to take place after the release of Amr Diab’s highly anticipated album “Makanak” exclusively on Anghami on December 28, 2023.

Strategic Milestones Reshaping Anghami’s Future

Anghami’s strategic moves in 2023 have been nothing short of transformative, positioning the company as a digital media streaming powerhouse.

  1. SRMG Investment: On August 21, 2023, Anghami secured a game-changing $5 million strategic investment from SRMG, a prominent MENA media group, valuing the company at $2.5 per share.
  2. OSN Group Merger: A groundbreaking merger with OSN Group was announced on November 21, 2023, creating the MENA region’s first integrated music and video streaming platform. OSN Group invested $50 million in Anghami, valuing it at $3.65 per share.
  3. Strategic Impact: These strategic investments promise to reshape the landscape of the music and entertainment industry in MENA, offering unparalleled content and experiences to users.

Eddy Maroun’s Vision

  1. Eddy Maroun’s Perspective: Eddy Maroun, Co-founder and Chief Executive Officer at Anghami, expressed his excitement regarding the company’s transformative quarter.
  2. Strategic Milestones: Maroun emphasized how securing investments from key players like OSN Group and SRMG aligns with Anghami’s strategic focus on high-margin segments.
  3. Growth and Margins: He underlined Anghami’s commitment to growth while continually improving margins, especially in the high ARPU markets within the GCC, where OSN Group and SRMG have a strong presence.

FAQs: Unveiling the Insights

Q1: What is Anghami’s core business strategy regarding revenue channels?

A: Anghami’s core strategy focuses on direct subscription channels, such as app stores and the web, to achieve improved margins, favourable collection terms, and currency fluctuation protection.

Q2: How has Anghami managed to maintain subscriber growth while optimizing costs?

A: Anghami achieved subscriber growth by enhancing platform scalability without sacrificing quality, even as it reduced overall platform costs.

Q3: What sets Anghami apart from its competitors?

A: Anghami’s exclusive collaboration with Amr Diab, offering premium content and live concerts, gives it a unique edge in the market.

Q4: What is the significance of Anghami’s merger with OSN Group?

A: The merger with OSN Group creates a one-of-a-kind integrated music and video streaming platform in MENA, promising exceptional content and personalization for users.

Q5: How have strategic investments impacted Anghami’s growth journey?

A: SRMG and OSN Group investments are poised to accelerate Anghami’s expansion, especially in high ARPU markets within the GCC.

Q6: What can users expect from Anghami shortly?

A: Users can look forward to exclusive content, live concerts, enhanced user experiences, and a broader range of services as Anghami innovates.

Conclusion

In conclusion, Anghami Inc. (NASDAQ: ANGH) has showcased an exceptional performance in the third quarter of 2023, marked by impressive growth, cost efficiency, and strategic advancements. With a vision led by Eddy Maroun, the company is poised to redefine the music and entertainment streaming landscape in the MENA region. As it continues to attract investments and partnerships, Anghami’s journey promises exciting developments for music enthusiasts across the Middle East and Africa.

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