Believe reports improved profitability and growth despite currency impacts

Music distribution company Believe reported a significant improvement in profitability and solid organic growth during the first half of 2024. Despite these positive results, the company has revised its growth outlook for the remainder of the year due to currency headwinds and slower-than-expected market growth.

The company's revenue reached €474.1 million, an increase of 14.1% in local currencies. Organic growth stood at 12.3%, with adjusted organic growth reaching 15.4%. Growth was primarily driven by strong performance in France, Europe, and the Americas.

Adjusted EBITDA rose to €31.3 million, a 29.3% increase compared to the same period last year. This improvement reflects a focus on value optimization, cost control, and operational efficiencies.

The company also completed its ownership restructuring, with the Upbeat Bidco consortium securing a stake of over 96%. CEO Denis Ladegaillerie stated that Believe is well-positioned for future growth and industry consolidation.

However, Believe's full-year 2024 guidance has been adjusted downwards. While the company still expects slightly positive free cash flow, organic growth is now projected to be around 12%, down from a previous forecast of approximately 18%. This revision is attributed to weaker-than-anticipated performance in ad-funded streaming and currency impacts.