Deezer’s Subscriber Growth at Home in France Helps Drive Quarterly Revenue Increase

Direct subscriber growth offset a decline in partnership subscribers, with Deezer’s CEO saying it “gives us the confidence to raise our full-year revenue outlook and strengthen our profitability… Headphones beside a smartphone and computer screen displaying the logo of French music streaming platform Deezer LIONEL BONAVENTURE/AFP via Getty Images Deezer reported on Tuesday (Oct. 27) third-quarter revenue rose as the Paris-based streamer grew subscribers in France and revenue from direct subscribers by more than 6% in constant currency, leading the company to raise its full-year revenue forecast. Overall revenue rose 1% in constant currency, which neutralizes foreign exchange rate currency fluctuations, to 133.8 million euros ($153.9 million). That increase was driven by a 6.4% increase to 94.1 million euros ($108.3 million) in revenue from subscribers who sign up to the streaming service directly, as opposed to subscribers who arrive by way of partnerships, such as with telecom service providers Orange or TIM. Related Direct subscribers are more lucrative for the company, and Deezer says it grew direct subscribers by 6.5% in France and by 4% in other markets for a total of 5.8 million direct subscribers — the result of successful family plans in France and improvements in retention elsewhere.
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