Samro reports record revenue growth and lowest cost-to-income ratio in a decade

At its 2024 Annual General Meeting (AGM) held on 5 December, Samro announced a significant 15.2% increase in Total Company Licence Revenue, rising from R593.7m in 2023 to R683.8m in 2024. This growth is driven by diversified licensing that has unlocked new revenue streams and reinforced Samro’s commitment to maximising value for its members. Additionally, new business contributed R35.9m in total revenue, reflecting a 32.5% year-on-year increase, while digital revenue, a key growth area, surged by 56.3%, highlighting a marked shift in music consumption behaviour.

For the 2023/2024 financial year, Samro achieved a record-high distribution of R429m to its members, representing a 63.8% increase from the previous year. The increased revenue resulted in an increase of 12.5% in the distribution expense (royalties available for distribution in 2025).

Samro’s commitment to financial efficiency has resulted in the lowest cost-to-income ratio in a decade, dropping to 22.9% in 2024 – a 2.1% decrease from the previous year and continuing a steady downward trend towards the organisation’s 20% target. By streamlining and optimising processes, Samro has been able to maximise royalty distributions while reducing overhead expenses. As a result, a greater portion of revenue is directed back to music creators, leading to higher royalty payouts and ensuring enhanced financial stability for members.

"This accomplishment underscores our unwavering commitment to optimising cost-effectiveness and implementing prudent financial strategies. Seven years ago, the CTI ratio stood at 40% and reducing it to 22.9% demonstrates our steadfast dedication to ensuring that more royalties go directly to members,” says Samro CEO Annabell Lebethe.

This strong financial performance and commitment to efficiency lay the foundation for Samro’s ambitious future growth strategy. “We have revised our strategic targets, increasing our revenue goal from R1bn to R1.2bn by 2028. We aim to distribute R1bn in royalties to our members by that period, and achieving this requires continued strategic investment in technology and process efficiencies to enhance revenue collection, streamline royalty distributions and expand our licensing footprint to unlock new revenue streams,” explains Lebethe.

“While these financial milestones are worth celebrating, we remain steadfast in our commitment to increasing value for members and reinforcing our role as an advocate for music creators,” concludes Lebethe.

For more information on Samro’s financial performance and strategic initiatives, visit www.samro.org.za.