ANGHAMI REPORTS PRELIMINARY Q3 2022 UNAUDITED RESULTS WITH 29% Y-O-Y REVENUE GROWTH AND GROSS PROFIT INCREASE
ANGHAMI REPORTS PRELIMINARY Q3 2022 UNAUDITED RESULTS WITH 29% Y-O-Y REVENUE GROWTH AND GROSS PROFIT INCREASE
Subscription revenue grew 27% quarter-on-quarter with total revenue growing in line 29% year-on-year from $24.5 million to $31.7 million
Q3 2022 gross profit improved by 13% year-on-year, with net ARPU up by 8%
Profitability focus enhanced by reducing FTEs by 22%, shrinking cloud costs by 19% despite 15% growth in plays
Abu Dhabi, Gulf Tech
Anghami Inc. (NASDAQ: ANGH) (the “Company” or “Anghami”), the leading music and entertainment streaming platform in the Middle East and Africa region (“MENA”), reported today its preliminary unaudited results for Q3 2022 ended September 30, 2022.
Subscription revenue in Q3 2022 increased 27% quarter-over-quarter, which is in line with Anghami’s total revenue growth, which also increased 29% year-over-year from $24.5 million to $31.7 million.
“I am proud to report that we grew our Q3 2022 gross profit by 13% quarter-over-quarter, driven by an 8% increase in ARPU. Given the impact of challenging macroeconomic conditions, we had to take some cost disciplinary measures to improve our bottom-line performance,” said Eddy Maroun, CEO and co-founder of Anghami.
Sustained focus on profitability required tough measures such as a 22% reduction in headcount and 19% savings in cloud computing costs – despite a 15% increase in music traffic in Q3 2022. This was made possible by the significant organizational and infrastructure investments the company has made in recent quarters, resulting in a more efficient and streamlined organization.
Another highlight for Anghami was the launch of a global competition on TikTok called “Sound of Saudi,” which celebrates the Kingdom’s expanding music sector by inviting Saudis in the country and around the world to participate in the talent search. The show, which began on October 12, encouraged participants to showcase their skills as singers, composers, producers, mixers, or instrumentalists. Winners of the final round will have their original creations professionally produced and made available through Anghami. To date, the contest has received over 390 million views with 5 million engagements and over 25,000 entries. This initiative was strongly endorsed by the Saudi Music Commission. This is consistent with Anghami’s commitment to nurture local talents and introduce more opportunities to the local artists.
In fact, local artists focus have been an emphasis of “Spotlight Events”, which was acquired by Anghami earlier in 2022, and has achieved a 149% year-on-year increase in revenue in its first year as part of the Anghami Group with various concerts such as Beat the Heat in partnership with Dubai Tourism and Stars in the City with Abu Dhabi Tourism, and will hold more than 15 concerts in 2022, underlining Anghami’s ambitious new strategy.
Pursuing the entertainment expansion blueprint, the first “Anghami Lab” Rooftop Lounge will open in Riyadh, Saudi Arabia on 18 November– as part of the Riyadh Season 2022 attractions located in the Riyadh Boulevard City entertainment hub of Merwas, the region’s largest recording studios. Local talent will join Anghami producers to create music and perform on one of the city’s hottest stages, while guests can enjoy a fine culinary experience with the signature of leading hospitality group Addmind. “Anghami Lab” comes full circle for Anghami to reinforce the entertainment strategy and provide more avenues to connect with the fans and artists alike.
