Mdundo has released its earnings report for the first half of its financial year, which ended on December 31, 2024. As is customary, the company reported its earnings in Danish Krone (DKK), recording a subscription revenue of DKK 4.5 million (about USD $653,000).

However, the company’s advertising revenue took a hit, declining 44% YoY to DKK 1.4 million (about USD $196,000). This drop is largely attributed to a decrease in digital advertising prices across Africa.

“The price of display advertising dropped by 44%, impacting our ad-funded revenue. Also, the Tanzanian Shilling and Nigerian Naira have been particularly volatile during this period. This is primarily impacting the company’s revenue and less so our bottom line as the majority of our costs are in local currencies,”

— CEO Martin Nielsen and Chairman Jesper Drescher

Despite these hitches, Mdundo saw a 45% increase in subscription revenue, signaling a major shift in its revenue model. Just 18 months ago, advertising accounted for 62.5% of Mdundo’s revenue, but that figure has now dropped to 23.99%. As a result, the company’s total revenue grew by 3% YoY to DKK 5.85 million (about USD $822,000).

Mdundo also saw a 26% increase in monthly active users (MAUs), reaching 38.8 million by December 2024. This brings the company close to its goal of 40 million MAUs by June 2025.

“Despite limited total revenue growth within the period, our transition towards a subscription-led model is accelerating, supported by new partnerships with Glo Nigeria and Vodacom South Africa,”

— CEO Martin Nielsen and Chairman Jesper Drescher in a letter to shareholders

They also mentioned having has 2 -3 more partnerships in the works.

Looking ahead, Mdundo is setting its sights on a growing audience outside Africa—particularly the African diaspora in the United States, the United Kingdom, Germany, and France. To cater to this market, the company has launched a "native web app", designed for users with high-end devices who do not battle data limitations but have a strong interest in African music.

“Our focus is particularly on premium subscribers to increase engagement and user value,”

— CEO Martin Nielsen and Chairman Jesper Drescher

Mdundo continues to attract new users through its partnership with Opera Mini and via Google Search, where it ranks on search terms related to African music. This is complemented by paid campaigns that drive new customers to the platform.

On the content side, the platform ingested 87,000 new songs during the reported period, bringing the total number of songs on Mdundo to 772,000. The company also holds licenses for 2.3 million songs from global record labels.