Mdundo.com: Lowers guidance for revenue in 2023/24 and now expects growth of 11-35% from last financial year, down from a previously expected growth of 35-67%. EBITDA and user guidance are maintained

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Company announcement 8

Challenging partnership agreement regarding sale of audio advertisements: The company entered into a reseller agreement with South African Ad-Dynamo in August 2023 to take over the sale of audio advertisements (previously managed internally). The agreement was, among other things, entered on the basis of Ad-Dynomo's experience with sales for Meta, X, Spotify, among other global platforms. A delayed and generally unsatisfactory execution of the agreement on Ad-Dynamo’s part has resulted in significantly lower results than expected. However, Mdundo.com's view of the earning potential and our unique advertising product in the African markets is unchanged, and the adjustment of expectations for the current financial year is mainly due to a timeline shift and not lower purchasing power or appetite for Mdundo's products among customers.

Unchanged EBITDA expectations: The company expects no change in the guided EBITDA. As previously communicated, the company aims to improve EBITDA by DKK 0.5 - 1.5 million compared to the last financial year with a target of DKK - 6.5 to - 7.5 million for the financial year 2023/24. The combination of lower revenue and unchanged EBITDA is, among other things, an expression of tight cost control and in general higher efficiency than expected.

Strong growth in earnings from paying users: We expect an increase in the share of revenue generated from paying subscribers. The strong growth in paying users for the previous two years is expected to continue from 35% of the revenue in the last financial year to approx. 50% of the revenue in this financial year. Mdundo recently went live with a new partnership with Kenya's largest telecommunications company Safaricom, which plays a role to support strong growth in earnings from paying users.

Monthly active user (MAU) expectations unchanged: The number of monthly active users at the end of Q1 was 29.1 million and is still expected to be 35 million at the end of the financial year 2023/24.

	22/23 Result	June 2023 Guidance	December 2023 Guidance
Revenue	DKK 12.6 million	DKK 17 - 12 million	DKK 14 - 17 million
EBITDA	DKK -8 million	DKK -6.5 - 7.5 million	DKK -6.5 - 7.5 million
Monthly Users	26.6 million	35 million	35 million