SAMRO, the South African Music Rights Organization, has achieved unprecedented financial success in 2024, reporting record-high revenue and the lowest Cost-to-Income ratio in a decade. This performance directly benefits members through increased royalty distributions and fair compensation.
SAMRO has achieved unprecedented financial growth, reaching the highest revenue ever recorded and the lowest Cost-to-Income (CTI) ratio in a decade. This financial success directly benefits members by facilitating increased royalty distributions and fair compensation. The organization's ongoing emphasis on financial sustainability and operational efficiency demonstrates its dedication to maximizing member earnings while bolstering long-term stability.
During its 2024 Annual General Meeting (AGM) on December 5, SAMRO reported a significant 15.2% rise in Total Company Licence Revenue, increasing from R593.7 million in 2023 to R683.8 million in 2024. This expansion is driven by a diversified licensing approach that has opened up new revenue avenues and strengthened SAMRO's mission to optimize value for its members. Furthermore, new business generated R35.9 million in total revenue, marking a 32.5% year-on-year growth, while digital revenue—a crucial growth sector—rose by 56.3%, indicating a significant shift in music consumption trends.SAMRO distributed a record-high amount of R429 million to its members, reflecting a 63.8% increase from the previous year. This rise in revenue led to a 12.5% increase in distribution expenses (royalties available for distribution in 2025). SAMRO's focus on financial efficiency has resulted in the lowest Cost-to-Income ratio in a decade, decreasing to 22.9% in 2024—a 2.1% reduction from the prior year—continuing a consistent downward trajectory toward the organization's target of 20%. SAMRO CEO Annabell Lebethe shared that the organization has adjusted its strategic goals, raising the revenue target from R1 billion to R1.2 billion by 2028. By refining and optimizing processes, SAMRO has maximized royalty distributions while lowering overhead costs. Consequently, a larger share of revenue is returned to music creators, leading to larger royalty payments and ensuring improved financial stability for members.“This achievement highlights our unwavering commitment to enhancing cost-effectiveness and employing sound financial strategies. Seven years ago, the CTI ratio was at 40%, and our ability to lower it to 22.9% reflects our strong resolve to ensure more royalties are delivered directly to members,” stated Lebethe. This impressive financial performance and commitment to efficiency set the stage for SAMRO's ambitious growth strategy moving forward. “We have adjusted our strategic goals, raising our revenue target from R1 billion to R1.2 billion by 2028. 'We intend to allocate R1 billion in royalties to our members by that time, and achieving this will require ongoing strategic investments in technology and process improvements to boost revenue collection, simplify royalty distributions, and expand our licensing reach to uncover new revenue opportunities,” elaborated Lebethe
SAMRO Music Rights Revenue Royalty Distributions Cost-To-Income Ratio Financial Performance Growth Strategy
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