Mdundo.com 1st Quarter Report 2023-24: Hitting 29.2 million monthly active users in September 2023

Company announcement no. 6-2023

HIGHLIGHTS

• Contentious strong user growth: Mdundo.com reaches 29.2 million monthly active users in September 2023, up from 21.5 million in September 2022 representing a 36% growth.
• Strategic Partnerships with Aleph Group: Mdundo.com has appointed Aleph Group as the reseller of audio ads in key African territories, Aleph is a reseller of X, Meta, Snapchat, Tiktok, Spotify and Google advertising in Africa.
• Contentious growth of talk-audio and podcast content: The service is experiencing a further growth of podcast and talk-audio content. In September 2023, 4% of all downloads were from this category, up from 2% in March 2023. This is in alignment with the vision of providing Africa with easy and legal access to online entertainment, and not only music. The most popular categories include music reviews, football highlights and educational content.

OUTLOOK

- Strategic Goals: Mdundo.com A/S aims to reach 50m monthly active users as well as EBITDA positive by 2025. The company has set three clear strategic focus areas:

• Delivering a locally relevant service and content for the 613 million mobile subscribers in Africa expected by 2025.
• Increasing the value per user through telecommunication partnerships.
• Focusing on key markets; Kenya, Nigeria, Ghana, Tanzania and South Africa.

- User Growth Anticipated: Projecting 32% increase in monthly active users from June 2023 to June 2024, aiming at 35 million.

- Revenue Growth: Aiming for DKK 17-21 million, reflecting 35-66% growth from last financial year.

- EBITDA Improvement: Targeting DKK -6.5 to -7.5 million, showcasing an improvement of DKK 0.5-1.5 million.

MANAGEMENT REVIEW

Strong user growth and increase in marketing activities:

Mdundo.com A/S had 29.2 million monthly active users at the end of the quarter. Aligned with the vision of being a leading pan-african online content service, the company had a number of marketing initiatives throughout the quarter. The main objective of the marketing activities is to grow the premium service offered together with the telecommunication providers, Vodacom in Tanzania, MTN and Airtel in Nigeria, MTN in Ghana and MTN in South Africa. Mdundo.com A/S has previously announced that 35% of the company’s revenue is generated from these partnerships, and the total customer base of the partners is 185 million customers across the key markets in Africa.

• In Tanzania, Mdundo partnered with Vodacom to run an on ground activation at the Saba Saba festival including live DJ performance at the event.
• In Nigeria, the company ran a DJ battle and handed out a Mdundo Super DJ Award in collaboration with MTN Nigeria.
• In Kenya, Mdundo celebrated Hiphop’s 50s birthday together with The Blocc Party and Nairobi Hip Hop Fest, the event featured a number of high-profile Kenyan hiphop artists.
• Across Africa, a new video content marketing asset, “Mdundo.com: Transforming the African music industry, one legal download at a time” was launched. This will feature video interviews with a number of stakeholders and staff members of Mdundo with the objective of creating awareness of the company's vision and impact on the continent.

Strategic sales partnership with Aleph Group

Mdundo has partnered with Aleph Group, a global advertising sales agency, to resell Mdundo’s audio inventory across key markets including Nigeria, Ghana, South Africa and Tanzania. Aleph has existing resale agreements with X, Meta, Snapchat, Tiktok, Spotify and Google in Africa and offers a strong salesforce across key African markets that quickly allows Mdundo to scale sales to new markets. Within the quarter Mdundo has run campaigns for leading brands including ABSA bank, Uganda Breweries, Wrigleys, 9mobile, Kenyan Breweries, Multichoice, Nivea, Coca Cola and GT bank.

Contentious growth of audio content

The service is consistently experiencing growth in the podcast and audio content category, the category accounted for 4% of downloads, up from 2% in Q3 2022-23. The company has engaged a number of local radio stations within the category and sealed a partnership with SNS (Simulizi Na Sauti), a major Tanzanian audio distributor, to distribute and monetize their content on the Mdundo.com service.

Industry event in Lagos, Nigeria, with Fortune Wind

Mdundo.com hosted an event with one of Nigeria’s leading Gospel record labels, Fortune Wind. The event brought together a diverse group of gospel artists, industry experts, and enthusiasts to engage in discussions centered around effective music promotion strategies, marketing, branding, and harnessing the full potential of social media in the digital era. The event provided a platform for the gospel artists to exchange ideas, share experiences, and learn from one another. Fortune Winds expertise in gospel music distribution combined seamlessly with Mdundo's commitment to fostering a vibrant music scene across the continent. Moving forward, the company plan to host similar events in collaboration with African record labels 1-2 times every quarter in Lagos and Nairobi.