Believe reported strong first-quarter revenue of 230.3 million euros ($248.5 million) on Wednesday (April 24) despite currency fluctuations that led to slower organic growth compared with last year's final quarter.
The company reported an adjusted organic growth rate of 16.1%, which was in line with guidance, though down from 21.8% adjusted growth in the fourth quarter of 2023.
Executives said they expect organic revenue to grow 18% for the year, thanks to the reduced benefit of higher subscription fees on digital streaming platforms and a rebound in ad-supported streaming in emerging markets in the second half of the year.
“Our growth is driven by our ability to grow our roster and partners,” Founder/CEO Denis Ladegaillerie he said on a conference call with analysts. Some of the company's top signings during the quarter included German hip-hop act Hava & Dadan, Indian Punjabi artists Ninja and Parmish Verma, and regional Mexican band Mexican Montez de Durango.
The Paris-based music label also provided an update on the timeline for taking Believe private through a consortium of buyers, which includes Ladegaillerie.
“It is likely that it will happen in the next few days” Xavier Dumont, Believe's CFO/chief strategy officer said on a conference call discussing the company's earnings Wednesday. “This is going to be reviewed by the market authorities before (going through) the rest of the process.”
Warner Music Group (WMG) has decided not to make a formal bid for Believe after the company previously said it was considering an offer of 17 euros per share, or about 1.65 billion euros ($1.8 billion). On Friday (April 19), Believe's board said it unanimously supported the joint venture's bid.
Following that announcement, the consortium said it was in the process of acquiring nearly 72% of the shares from some long-term investors and would make a formal offer for the remaining shares once those acquisitions close.
Executives could not be reached for comment on WMG's decision not to bid.
