The Mdundo Group continued its strong user growth in 2020/2021

Company Announcement Number 12-2021

Highlights:

User growth is on track:

• At the end of the financial year, the group had approx. 8.7 million unique monthly users, which was an increase of 74% since the beginning of the financial year.
• West Africa is the fastest growing region with 138% as a result of the increasing focus on Nigeria and Ghana.
• East Africa had the largest user base for the company at the end of the year.

Partnerships with telecommunications companies:

• Mdundo has launched telecommunication partnerships across Africa with Vodacom in Tanzania as well as MTN and Airtel in Nigeria.
• The three telecommunications companies have a combined user base of 125 million subscribers that can now purchase access to Mdundo’s premium music packages.
• This supports 1) Mdundo's mission to become the primary pan-African music platform and 2) to achieve a larger share of paying users over time.

Steep catalogue growth especially in new markets:

• During the year, the company has significantly increased its African music catalogue from around 200,000 songs to almost 300,000 songs, West Africa was the fastest growing region with 92% catalogue growth.
• Mdundo has entered into agreements with three of Africa's leading record companies: Davido Music Worldwide (DMW), Jungle Entertainment and Keyqaad.

Financial performance:

• EBITDA for the year amounts to DKK -6.3 million, which is significantly better than the latest guidance from the Company which was an EBITDA of minus DKK 8-9 million. The ordinary result after tax amounts to DKK -8.4 million. Management considers the result for the year satisfactory and in line with the company’s investment and growth strategy and mission to be the primary pan-African music service within a few years and have 18 million unique monthly users mid-2022.

Outlook:

• The company has previously announced to the market that the number of monthly active users is expected to increase by approx. 100% to 18 million in 2022.
• The company expects to implement another 1-2 telecommunications partnership agreements by the end of the calendar year 2021.
• The group expects an increase in revenue from DKK 2.3 million in 2020/21 to DKK 9-10 million in 2021/22, while EBITDA is expected to be in the range of minus DKK 10 -11 million in 2021/22, as a result of continued aggressive investment in user growth and geographic expansion. This is in line with previous expectations set by the company.