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Middle East-based music streaming firm Anghami said that it has made progress towards profitability, with its operating loss showing an improvement and subscribers growing in the first quarter of the year.
Total operating loss during the period narrowed from $5.4 million to $2.7 million, while gross margin improved from 20% to 26%, the company said in a statement on Thursday.
The number of premium subscribers reached 1.87 million by March 31, 2024, up by 18% from the same period in 2023. Total revenues also grew by 8%, mainly driven by the 27% growth in subscription revenue.
Last month, OSN Group completed a transaction to acquire a 55.45% stake in Anghami for a cash investment of $38 million. Anghami expects the transaction to transform the company into a “digital entertainment powerhouse”.
Anghami also acknowledged that its financial performance last year was impacted by the devaluation of the Egyptian currency and the Gaza conflict.
“The Gaza war significantly disrupted advertising activities and live events in Q4 2023, resulting in the postponement of several key projects and events until 2024,” the company said.
(Writing by Cleofe Maceda; editing by Brinda Darasha)
