Asia Pacific and Africa Drive 26% of Believe's Q3 2023 Revenue

Believe, the parent company of TuneCore has also released its financial report for Q3 2023. Believe is publicly listed on Paris Euronext.

Read Spotify’s, in case you missed it

Believe generated $234 million across its entire business, signifying a year-on-year growth of 9.1%. Believe operates through two distinct divisions, viz:

• DIY distributor TuneCore (referred to as Automated Solutions)

• Premium Label and Artist services (Premium Solutions) 

Read about Label Services here, in case you missed it

Overall Revenue

Believe's Label and Artist division experienced revenue growth, reaching $220.8 million from $195 million year-on-year (Q3 2022). This growth reflects Believe's ongoing efforts to capture a larger market share in an industry primarily driven by paid streaming. Believe acknowledges that ad-funded streaming monetization remained relatively weak, particularly in emerging markets.

Believe highlights the contribution of Sentric, a music publishing platform, to its Label and Artist services. The acquisition and integration of Sentric added about $4.5 million to Believe's revenue, contributing around 2% to the overall growth in this segment.

On the other hand, Believe's Automated Solutions (TuneCore) revenue for Q3 2023 reached $13.16 million, experiencing a decrease of 4.5% compared to the previous year (Q3 2022). Believe attributes this decline primarily to the weakening of the dollar against the Euro, with an approximate difference of -6%.

Europe

In Q3 2023, Believe achieved revenue of $72.8 million in Europe, excluding France and Germany, accounting for a substantial 31.1% of its total revenue. This represents an increase of 25.9% compared to the same quarter last year. Believe attributes this revenue growth to sustained performance in Southern Europe, Eastern Europe, and Turkey.

The integration of Sentric in Q3 2023 exerted a positive impact on Believe's revenue, specifically in the UK.

The Americas

In this region, Believe experienced 8.4% revenue growth, amounting to $33.7 million. This revenue accounted for 14.4% of the company's total revenues. Believe specifically highlights the strong level of activity in Brazil and Mexico in Q3 2023. Believe also highlights solid success in the Latin music space.

Moreover, the weakening of the dollar against the Euro had an impact on Believe's performance.

Asia Pacific and Africa

Asia Pacific and Africa regions witnessed a year-on-year growth of 6.6%, reaching a total of $60.7 million. This accounts for 25.9% of Believes's overall revenues. While India and Southeast Asia experienced single-digit growth, their revenue trajectory remained strong. On the other hand, Greater China and Japan post good revenue growth, with Believe expanding its presence in the Japanese market by introducing its Premium offering.

Believe also launched operations in Africa in 2020 with key hires such as Jade Leaf, as Head of TuneCore for Southern Africa & part of East Africa, and Chioma Onuchukwu, as Head of TuneCore for West and part of East Africa, were announced. Both Leaf and Onuchukwu report to Tash Shah, Vice President, International, TuneCore.

Here, I mentioned Believe licensing and digitizing one of Nigeria’s most popular albums in the mid-late 2000s, “Chinwe Ike” by Resonance amongst many others.

France & Germany

In France, Believe’s revenue saw a modest 0.7% year-on-year growth in Q3 2023, amounting to $37.4 million. This revenue accounted for 16% of the company's total revenues. On the other hand, in Germany, Believe generated revenues of $29.3 million, experiencing a 6.4% decline compared to the previous year, and representing 12.5% of the company's revenues.

Believe acknowledges that digital sales showed less dynamism during the quarter, following a trend that began at the end of Q2 2023. However, amidst these fluctuations, Believe continues to diversify its roster in terms of music genres, further expanding its offerings to cater to a wide range of musical tastes.

Believe notes that paid streaming trends remained solid and expects this positive momentum to continue into Q4 2023, particularly benefiting from price increases on some streaming platforms. Believe also acknowledges that ad-funded streaming monetization remained relatively weak, specifically in Europe and Asia Pacific/Africa regions.

Denis Ladegailleris, the founder and CEO of Believe, shares his thoughts on the quarter, emphasizing the company's dedication to providing exceptional service to artists and labels. He mentions how Believe's efforts have helped artists at various stages of their careers reach the top of the charts while enabling labels to outperform their local markets.