Deezer’s IPO project is over, at least for now. The streaming service has postponed its plans to raise $343m by going public “due to market conditions”, announcing that it will be reviewing its fundraising options in the future.
“Deezer is well funded and well positioned as it continues to pursue its growth strategy,” said the company in a short statement this evening.
It is just over a month since Deezer announced plans for the IPO, revealing that it generated €142m of revenues in 2014, and expected 35% growth in 2015 with its annual revenues rising to €750m by 2018.
Yet its IPO documents also revealed annual losses of €22.1m in 2013, €27.2m in 2014 and €9m in the first half of 2015, as well as the fact that just under 53% of its “subscribers” were inactive.
Deezer has not yet specified the reasons for pulling its IPO beyond the tough market conditions, although its decision comes days after Pandora’s share price took a walloping following that company’s latest financial results.
We’ll bring you more analysis tomorrow of what the news means for Deezer, as well as for rivals like Spotify, which is plotting its own path towards going public.
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