Anghami Inc. (NASDAQ: ANGH) (the “Company” or “Anghami”), the leading streaming platform for music and entertainment in the Middle East and North Africa (MENA) region, has announced its unaudited preliminary results for Q1 2023, ending March 31, 2023.
Despite facing currency-related challenges in Egypt and Lebanon, Anghami successfully achieved a Q1 2023 unaudited revenue of $10.2 million, representing a 6% increase compared to Q1 2022. On a constant currency basis, the increase would have been 12%, demonstrating Anghami’s ability to achieve strong growth despite challenging conditions in Egypt and Lebanon.
By streamlining our technology backend we have been able to reduce our technology costs while improving performance and scalability. Furthermore, we have optimized our marketing strategy by concentrating on growth channels with the highest retention rates. This approach has led to a significant improvement in brand visibility and customer engagement, while also reducing overall marketing expenses.
Our continued emphasis on efficiency and path to profitability led to a substantial increase in gross profit margin, increasing from 17% in Q1 2022 to 23% in Q1 2023, resulting in a significant $3.1 million improvement in EBITDA, a 60% improvement compared to Q1 2022.
Anghami's achievements in Q1 2023 can be attributed to a 39% increase in revenue from Direct Subscriptions (non-telco) channels, a 16% growth in Premium subscribers, and improved margins with content providers and telcos when compared to Q1 2022. Revenue from the Advertisements segment also grew 10% in Q1 2023 compared to Q1 2022 (a +32% increase when Q1 2022 Advertisements revenue is adjusted for non-cash barter revenue). The revenue increase in the Advertisements segment was driven by Anghami's unique ability to leverage its wealth of user data, connections with artists, and technology to create highly engaging branded content.
As part of our ongoing commitment to increase the Average Revenue Per User (ARPU), Anghami plans to launch the Gold subscription plan in May 2023. This Premium offering will feature innovative AI-generated services and several new features, and will coincide with the repricing of legacy telco plans to optimize revenue generation.
Although the occurrence of the Holy Month of Ramadan in Q1 2023 (which is usually characterized by slower business activity and much lower music consumption in the Middle East) affected certain revenue streams and growth prospects, particularly within the Live Events segment, Anghami's overall performance demonstrates our ability to surmount challenges and deliver significant business improvements.
Eddy Maroun, Anghami CEO, remarked, "Our team's exceptional execution in the face of bottlenecks and currency devaluation has culminated in a highly efficient period. Building on Q1 2023’s strong performance, the momentum continues in April 2023 which already shows record growth in revenue in both Subscriptions and Advertisements segments."
Elie Habib, Anghami Chairman & CTO, added, "We are eager to continue enhancing efficiency, delivering higher margins, and innovating with our upcoming Gold subscription plan, laying the foundation for a prosperous 2023."
Anghami filed on 16 May 2023 its annual report (including audited financials) for the fiscal year ended December 31, 2022 on Form 20-F with the United States Securities and Exchange Commission (the “SEC”). The annual report on Form 20-F is available on Anghami’s website https://www.anghami.com/investors.
Anghami is still aiming to improve margins in 2023 by building on the momentum of its focus on efficiency.