Deezer H1 2025 slides: Music streamer turns profitable as cost-cutting measures take effect

Introduction & Market Context

Deezer (EPA:DEEZR) reported its first-half 2025 results on July 31, showcasing a second consecutive half of positive adjusted EBITDA as the music streaming service continues its path toward sustainable profitability. Despite trading near its 52-week low of €1.15, with shares currently at €1.24, the company’s financial performance shows signs of improvement through disciplined cost management and strategic focus on its core markets.

The French music streaming platform reported revenue of €267.1 million for H1 2025, representing a modest 1.3% increase at constant exchange rates compared to the same period last year, while achieving positive adjusted EBITDA of €2.1 million, a significant improvement from the €5.0 million loss in H1 2024.

Quarterly Performance Highlights

Deezer’s H1 2025 results demonstrated continued progress toward profitability, with key metrics showing improvement in operational efficiency despite mixed subscriber trends. The company reported a €7 million year-on-year improvement in adjusted EBITDA, turning positive at €2.1 million compared to a €5.0 million loss in H1 2024.

As shown in the following slide highlighting key financial results:

The company’s direct subscriber base grew to 5.3 million, representing a 5.5% like-for-like increase, with particularly strong performance in France (+8.2% LFL). However, this growth was offset by a 21.1% decline in partnership subscribers, primarily due to the conversion of MeLi+ promotional cohorts to premium offers. Overall, Deezer’s total subscriber count decreased to 9.2 million from 10.0 million in H1 2024 on a like-for-like basis.

Revenue remained relatively stable at €267.1 million, with direct subscriber revenue increasing slightly while partnership revenue declined. The company’s ARPU (Average Revenue Per User) metrics showed a slight decrease in direct ARPU to €5.5 from €5.6, while partnership ARPU increased to €3.1 from €3.0, reflecting a better subscriber mix.

The path to profitability is clearly illustrated in the following chart, showing the progression of adjusted EBITDA over recent periods:

A key driver of Deezer’s improved profitability has been its focus on cost reduction. The company successfully lowered operating expenses by €6 million year-over-year, with €3 million in marketing expense reductions and €3 million in staff and general administrative expense cuts.

The following slide demonstrates these cost reductions:

This disciplined approach to cost management, combined with a focus on higher-value direct subscribers, has enabled Deezer to achieve positive free cash flow of €1 million and maintain a solid cash position of €60 million at the end of June 2025.

Strategic Initiatives

Deezer’s strategy focuses on three key pillars: fans, artists, and partners. For fans, the company is emphasizing differentiation for the Zillenial demographic through enhanced customization features, social experiences, and exclusive artist connections.

The following slide showcases Deezer’s Zillenial-focused features:

For artists, Deezer is pioneering transparency initiatives in music streaming, particularly around AI-generated content. The company has implemented the world’s first AI tagging system for music streaming, revealing that 18% of all music uploaded daily (over 20,000 tracks) is 100% AI-generated. This initiative aims to provide transparency to music fans while protecting artist rights.

As illustrated in this slide on artist transparency initiatives:

Partnership Ecosystem

Deezer continues to expand its partnership ecosystem across two main categories: distribution partnerships and music-as-a-service solutions. The company has renewed deals with key distribution partners like Orange and Bouygues (EPA:BOUY) while signing new partnerships with companies such as Fitness Park and Molotov by fubo.

In the music-as-a-service category, Deezer is expanding into new verticals through partnerships with companies like Sonos (NASDAQ:SONO), Dunkin’, and Converse, leveraging its technology, content, and expertise to "bring the power of music everywhere."

The following slide details these partnership initiatives:

Forward-Looking Statements

Looking ahead to the full year 2025, Deezer has confirmed its financial targets, expecting revenue to be flat to slightly declining year-over-year while maintaining positive adjusted EBITDA and positive free cash flow for the second consecutive year.

As shown in this slide outlining the company’s financial targets:

The company’s focus on profitability over growth reflects a strategic shift in the competitive music streaming landscape, where scale and operational efficiency have become increasingly important. By concentrating on its core French market, where it has achieved 8.2% subscriber growth, while implementing strict cost controls, Deezer appears to be carving out a sustainable position despite fierce competition from larger global players.

While Deezer’s stock price remains near its 52-week low, the company’s progress toward sustainable profitability and positive cash flow generation could potentially provide a foundation for future value creation if these positive trends continue in the second half of 2025.

Full presentation:

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