Mdundo Built for Africa’s Listening Habits Now Faces the Hard Economics Behind Them
Listener growth continues across markets but the revenue behind it remains uneven and increasingly difficult to stabilise
Mdundo’s latest results expose a structural problem inside African music streaming. Access has expanded faster than monetisation. The company reported a 25.5 percent decline in revenue in the six months to December 2025, with income falling to 4.4 million Danish Krone from 5.8 million DKK a year earlier. Subscription payments increased, yet income weakened.
The gap sits inside the billing system itself. Telecom partnerships deliver reach but introduce uneven payment cycles, revenue leakage, and lower average revenue per user. Mdundo recorded 9.9 million subscription payments from about 906,000 customers during the period, but billing instability reduced the financial effect. Scale exists. Predictability does not.
Subscription revenue declined 15.6 percent year-on-year to 3.8 million DKK from 4.5 million DKK. The decline reflects how fragile recurring income remains when billing depends on telecom infrastructure rather than direct customer relationships. Payment access expands the audience while limiting control over collection and pricing.
Advertising retreats from smaller platforms
Advertising revenue dropped 57.1 percent to 600,000 DKK from 1.4 million DKK, extending a downward trend that has accelerated since 2023, when ad income stood at 3.1 million DKK for the same half-year period. The decline reflects concentration in digital advertising rather than temporary weakness.
Global platforms absorb the bulk of digital ad spending through scale and data advantages. Regional streaming services operate with thinner advertiser demand and lower rates per impression. Music streaming, already dependent on volume, absorbs that pressure quickly. When advertising weakens, subscription revenue carries expectations it cannot fully meet.
The erosion of ad income removes the buffer that once absorbed fluctuations in subscriber payments. Revenue volatility becomes visible in the accounts rather than masked by advertising growth.
Telecom billing delivers reach but limits control
Telecom billing remains central to Mdundo’s model. Partnerships with operators such as Safaricom and MTN allow users to pay through mobile money instead of bank cards, expanding access across markets where card penetration remains low. The trade-off is structural dependence.
Billing stability has improved slower than expected. As telecom billing accounts for most subscription revenue, delays and inconsistencies translate directly into slower income growth. Alternative payment channels including mobile wallets have launched, though their financial contribution remains limited.
Low pricing reinforces the constraint. Premium subscriptions cost $1.99 per month, about Sh257, while DJ mixes are priced at Sh5 per day. These price points support adoption but compress margins. Small variations in billing efficiency produce outsized financial effects.
Large audiences, narrow margins
Mdundo operates across 15 sub-Saharan African markets and reports more than 30 million active users. Usage growth has not translated into proportional revenue growth. The platform serves listeners using low-end smartphones and unstable internet connections, placing it closest to price-sensitive users whose spending fluctuates with economic conditions.
Competition reinforces the pressure. Boomplay and Spotify continue expanding through telecom partnerships and bundled offerings. Scale alone no longer distinguishes platforms. The ability to convert listening into stable income has become the dividing line.
Cost discipline slows losses but does not resolve pressure
Losses narrowed during the period. Negative earnings before interest, taxes, depreciation, and amortisation improved to 1.1 million DKK from 2.1 million DKK a year earlier after reductions in marketing spend and organisational costs. Efficiency improves survival but does not change the underlying economics.
The company has repeatedly adjusted its model since launching in 2013, moving from scratch card music sales to advertising-funded streaming and later subscriptions. Each transition responded to payment realities rather than strategic preference. The current pressure reflects the limits of relying on telecom billing as the primary revenue engine.
The economics of African streaming tighten
African streaming platforms now operate under clearer financial expectations. Audience growth alone no longer satisfies investors or operators. Revenue quality, billing reliability, and user spending consistency determine viability.
Mdundo’s results place that tension in plain view. Listener numbers continue to rise. Payment infrastructure continues to expand. Revenue stability remains unresolved. The next phase depends on whether payment systems, pricing structures, and user behaviour begin to align closely enough to turn large audiences into dependable income.
[Secure Your Seat at Africa Tech Summit Nairobi 2026 | February 11–12 here] Use code TTRENDS10 at checkout to save 10% on your pass and join the leaders building Africa’s $1 trillion cross-border payment future.
Go to TECHTRENDSKE.co.ke for more tech and business news from the African continent.
Follow us on WhatsApp, Telegram, Twitter, and Facebook, or subscribe to our weekly newsletter to ensure you don’t miss out on any future updates. Send tips to editorial@techtrendsmedia.co.ke
