Music streaming service Deezer is going public, with plans for an IPO by the end of this year via the Paris stock exchange.
According to the Financial Times, Deezer’s filing comes after the company generated €142m of revenues in 2014. Its CEO Hans-Holger Albrecht claimed that it expects 35% growth in 2015, rising to €750m of annual revenues by 2018 – by which point he hopes Deezer will be breaking even.
“We can really see that streaming is picking up,” Albrecht told the FT. “This is just the beginning of the curve.”
Deezer is beating rival Spotify to an IPO, although it has not yet said how much it plans to raise by going public. Deezer has more than 6m paying subscribers – a figure that has remained the same since the start of 2015, when the company also claimed 16m active users: a figure that included subscribers and free users)
Spotify ended last year with 60m active users including 15m paying subscribers. It recorded revenues of €1.08bn in 2014, meaning that while Deezer ended the year with 40% as many subscribers as Spotify, it generated just 13% as much revenue.
Spotify recorded a net loss of €162.3m in 2014. As Deezer’s IPO nears we will get an insight into that company’s losses too.
Deezer has raised $149.3m of funding since 2008, including a $130m round from Warner Music Group’s parent company Access Industries in 2012.