Anghami De Inc (ANGH)ANGH

Anghami De Inc.: A Comprehensive Overview

Company Profile:

Detailed history and background: Anghami De Inc. (ANGH) was founded in 2010 as a music streaming service, primarily targeting the Middle East and North Africa (MENA) region. From its inception, Anghami aimed to bridge the gap between legal and illegal music access for Arabic listeners.

Core Business: Anghami operates through subscription-based streaming services (freemium and premium), digital advertising, and digital content sales. It provides access to over 75 million songs, podcasts, and audiobooks in Arabic, English, French, and other languages.

Leadership and structure: Eddy Maroun leads Anghami as the CEO and Chairman, reporting to a Board of Directors. The company employs approximately 350 people across its offices in Lebanon, the United Arab Emirates, and Saudi Arabia.

Top Products and Market Share:

Products and offerings: Anghami's primary products include:

• Anghami Plus: Freemium ad-supported streaming service.
• Anghami Premium: Subscription-based ad-free streaming service with additional features.
• Anghami Pro: Subscription-based service for artists to monetize their music and connect with fans.
• Anghami Originals: Platform for exclusive Arabic music content.

Market share:

• Anghami leads the MENA music streaming market with a share of over 70%, reaching over 70 million monthly active users.
• Globally, Anghami's market share is estimated to be around 0.5%.
• Anghami competes with global players like Spotify, Apple Music, and Deezer, as well as regional players like Yandex Music and Qanawat.

Total Addressable Market:

Market size: The global music streaming market is estimated to be worth around $32 billion in 2023 and is expected to grow to $61.8 billion by 2028. The MENA region represents a significant portion of this growth, with a market size of $350 million in 2023 and an estimated growth to $684 million by 2028.

Financial Performance:

Recent financials:

• In 2022, Anghami's revenue was $53.2 million, with a net loss of $16.4 million.
• The company has shown steady revenue growth in recent years, with a 33% year-over-year increase in 2022.
• Anghami's gross profit margin is around 30%, and its operating margin is negative due to ongoing investments in growth.
• The company has a strong balance sheet with $32.3 million in cash and equivalents as of December 31, 2022.

Dividends and Shareholder Returns:

Dividend history: Anghami does not currently pay dividends, as it is focused on reinvesting its profits for growth.

• Shareholder returns: Since its IPO in 2022, Anghami's stock price has declined significantly.

Growth Trajectory:

Historical growth: Anghami has shown strong user and revenue growth in recent years.

• Future projections: The company projects continued growth, driven by increasing smartphone penetration, rising internet usage, and growing demand for music streaming in the MENA region.
• Recent initiatives: Anghami is focusing on expanding its product offerings, entering new markets, and forging strategic partnerships to drive further growth.

Market Dynamics:

Industry overview: The music streaming industry is characterized by intense competition, rapid technological advancements, and evolving consumer preferences.

• Anghami's position: Anghami holds a strong position in the MENA market but faces challenges from global giants and regional competitors.
• Adaptability: The company is continuously adapting its strategies to stay relevant and maintain its market leadership.

Competitors:

• Global: Spotify (SPOT), Apple Music (AAPL), Deezer (DEEZ)
• Regional: Yandex Music (YNDX), Qanawat

Challenges and Opportunities:

Challenges:

• Competition: Anghami faces stiff competition from both global and regional players.
• Piracy: Music piracy remains a significant challenge in the MENA region.
• Copyright issues: Licensing music content can be complex and expensive.

Opportunities:

• Growth potential: The MENA music streaming market has significant growth potential.
• Technological advancements: Anghami can leverage new technologies to enhance its offerings and user experience.
• Strategic partnerships: Partnerships with telecom operators, music labels, and other companies can accelerate growth.

Recent Acquisitions:

• Nov 2021: Anghami acquired SimSim, a cloud-based telecommunication and media services platform in the MENA region, for $5.1 million. This acquisition expanded Anghami's reach and strengthened its position in the telecommunications market.

AI-Based Fundamental Rating:

Rating: 6/10

• Justification: Anghami has a strong market position in the MENA region, shows promising growth potential, and demonstrates financial stability. However, it faces intense competition and needs to improve its profitability to attract long-term investors.

Sources and Disclaimers:

• Anghami De Inc. Investor Relations website: https://investors.anghami.com/
• Statista: https://www.statista.com/
• TechCrunch: https://techcrunch.com/

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Please conduct your due diligence before making any investment decisions.