Anghami De Inc (ANGH)

Anghami De Inc.: A Comprehensive Overview

Company Profile:

History and Background:

Anghami De Inc. is a Saudi Arabian-based audio streaming platform, established in 2012 by Eddy Maroun and Elie Habib. It offers access to millions of Arabic and international songs, podcasts, and audiobooks across 7 Arab countries. Anghami was the first music streaming service in the Middle East and North Africa (MENA) region to be listed on the NASDAQ stock exchange.

Core Business:

Anghami De Inc.'s core business revolves around offering audio streaming services through subscription-based and advertising-supported models. It provides users with a vast library of licensed music and podcasts, curated playlists, and personalized recommendations. Additionally, Anghami focuses on supporting and promoting Arabic artists through various initiatives.

Leadership and Corporate Structure:

The current CEO of Anghami De Inc. is Elie Habib, one of the co-founders. The company operates with a board of directors and several key executives leading various departments, including technology, content, marketing, and finance.

Top Products and Market Share:

Top Products:

• Anghami Plus: Subscription-based service offering ad-free streaming, offline playback, and high-quality audio.
• Anghami Free: Freemium service with limited features, supported by advertisements.
• Anghami Business: Tailored streaming service for businesses, offering customized playlists and branding options.

Market Share:

Anghami De Inc. holds a significant market share in the MENA region, claiming over 70% of the music streaming market. Globally, it has over 75 million registered users and 2.5 million paying subscribers. However, its global market share remains relatively small compared to major international competitors like Spotify and Apple Music.

Total Addressable Market:

The global music streaming market is vast and rapidly growing. Statista estimates that the global market size was valued at USD 38.5 billion in 2022 and is projected to reach USD 76.9 billion by 2027, representing a CAGR of 14.6%. This growth is driven by increasing internet penetration, smartphone usage, and rising disposable income in emerging markets.

Financial Performance:

Recent Financial Statements Analysis:

Anghami De Inc. remains in the growth phase, with revenue increasing year-over-year. In Q3 2023, the company reported revenue of USD 24.9 million, a 25.9% increase compared to the same period in 2022. However, Anghami De Inc. continues to operate at a net loss, with a net loss of USD 16.6 million in Q3 2023. This is primarily attributed to investments in marketing and technology to drive user acquisition and platform development.

Cash Flow and Balance Sheet:

As of Q3 2023, Anghami De Inc. holds USD 160.6 million in cash and equivalents, demonstrating sufficient financial resources to continue operations and pursue growth initiatives. However, the company has a negative free cash flow, indicating that it is not yet generating enough cash from operations to cover its expenses and investments.

Dividends and Shareholder Returns:

Anghami De Inc. currently does not pay dividends as it focuses on reinvesting profits for future growth. The company's share price has experienced volatility since its IPO in June 2022. However, its long-term shareholder return potential remains promising, considering the growth potential of the music streaming market.

Growth Trajectory:

Historical Growth:

Anghami De Inc. has demonstrated strong historical growth, with its user base and revenue increasing significantly over the past few years. The company's user base has grown from 50 million in 2020 to over 75 million in 2023. Revenue has also experienced significant growth, increasing from USD 12.6 million in 2020 to USD 75.9 million in 2022.

Future Growth Projections:

Industry analysts project Anghami De Inc. to continue on a growth trajectory, driven by several factors, including:

• Increasing internet and smartphone penetration in the MENA region.
• Rising disposable income and growing middle class in emerging markets.
• Continued expansion into new markets and strategic partnerships.

Market Dynamics:

Industry Overview:

The music streaming industry is highly competitive, with major players like Spotify, Apple Music, and Amazon Music vying for market share. These international players pose a significant challenge to Anghami De Inc. However, Anghami holds a strong advantage in the MENA region due to its first-mover advantage, localized content offering, and strong relationships with regional artists and music labels.

Market Positioning and Adaptability:

Anghami De Inc. is well-positioned within the MENA market, focusing on local content and catering to the cultural preferences of the region. The company has demonstrated adaptability by embracing technological advancements, such as artificial intelligence and personalized recommendations, to improve user experience and engagement.

Competitors:

• Spotify (SPOT): Global leader in music streaming, with over 456 million monthly active users.
• Apple Music (AAPL): Tightly integrated with Apple's ecosystem, boasting over 80 million subscribers.
• Deezer (DEEZR): Strong presence in Europe, particularly in France, with over 9.2 million subscribers.
• Amazon Music (AMZN): Part of Amazon's Prime membership, offering access to millions of songs.

Potential Challenges and Opportunities:

Challenges:

• Competition from global streaming giants like Spotify and Apple Music.
• Piracy and copyright infringement issues in the MENA region.
• Dependency on licensing agreements with music labels and artists.

Opportunities:

• Expanding into new markets within the MENA region and beyond.
• Investing in original content production and exclusive partnerships with artists.
• Leveraging artificial intelligence and machine learning to personalize user experience and improve recommendation systems.

Recent Acquisitions:

Anghami De Inc. has not completed any acquisitions in the past 3 years. However, the company has engaged in several strategic partnerships with music labels and technology providers to expand its content offering and enhance user experience.

AI-Based Fundamental Rating:

Rating: 7.5 out of 10

Justification:

Anghami De Inc. holds a strong market position in the MENA region and demonstrates promising growth potential. The company's focus on local content, strategic partnerships, and technological advancements positions it well to compete in the global music streaming market. However, challenges like competition from global players and profitability concerns require careful consideration.

Sources and Disclaimers:

This overview utilizes data and information from the following sources:

• Anghami De Inc. Investor Relations website
• Statista
• Refinitiv Eikon
• Yahoo Finance

Disclaimer:

This information is for educational purposes only and should not be considered financial advice. Investing in stocks involves inherent risks, and you should always conduct your own research and due diligence before making any investment decisions.