Deezer’s total quarterly revenue edged 1.1% higher in the first quarter of 2025, the French streaming company reported on Tuesday (April 29), as its top executive reiterated the company’s target to achieve profitability this year.
Deezer reported revenue of 134 million euros ($145.08 million) in the first quarter, driven primarily by 6.3% growth in its direct subscriber base in France, bringing the total number of subscribers there to 3.5 million.
Deezer achieved positive free cash flow and its first break-even year in fiscal 2024, and CEO Alexis Lanternier said the company will achieve positive adjusted earnings before interest, taxes, depreciation and amortization (EBIDTA) in 2025. Deezer expects total revenue for 2025 to be flat or slightly decline from fiscal year 2024, as it forecast no meaningful increase in average revenue per user (ARPU). However, the company maintained it will “generate positive free cash flow for the second consecutive year,” according to a press release.
“We started the year with positive momentum, delivering revenue growth in line with our expectations and further increasing our direct subscriber base in France,” Lanternier said in a statement. “With confidence, we confirm our 2025 guidance and our objective of reaching profitability this year.”
Founded in August 2007, Deezer has embarked on a range of initiatives aimed at achieving profitability, including raising prices on its direct subscribers in France; doubling-down on its strategy to gain subscribers through partnerships with companies like the German broadcaster RTL, American speaker company Sonos and Latin America’s Mercado Libre; and through the introduction of new customization features for users and opportunities to directly interact with artists.
Deezer’s total subscriber base now stands at 9.4 million, down from what it said was 10 million subscribers on a like-for-like basis in the first quarter of 2024. Of those 9.4 million subscribers, 5.3 million are direct subscribers, mostly in France, while 4.1 million subscribers come from partnerships. Revenue from Deezer’s direct subscriber base contributed 86.6 million euros ($93.8 million), up from 86 million euros ($92.8 million) a year ago. Partnership subscribers contributed 39.2 million euros ($42.4 million), down from 43.3 million euros ($46.7 million) a year ago.
The decline in partnership subscriptions, which drove an overall 3.4% drop in the revenue Deezer receives from countries outside of France, was primarily due to the conversion of users who came to Deezer through its partnership with Mercado Libre called MeLi+. Some promo users converted to premium users “with higher [average revenue per user] & margins,” the company said. The decline in partnership subscriptions and revenue was partly offset by a ramp up in Deezer’s partnership with RTL+, the company said. Deezer renewed long-term partnerships with Bouygues and Orange in the first quarter.
