This recurring revenue stream provides greater visibility and predictability to the company’s overall results as well as contributing to the expected high growth of the business, alongside Data monetisation, Liberum reckons.
Analysts estimate that 40% of the mobile payments and data group’s 2020 revenues came from subscriptions, with the company managing payments for around 6mln of them.
These subscriptions are from two sources: in-app subscriptions and from the company’s resale/bundling business.
Growth in the resale/bundling segment is expected to be higher than from in-app subscriptions, helped by the signing of platform agreements with major operators, according to Liberum.
Data from research firm Sensor Tower shows that global consumer spending on the top 100 non-game subscription-based apps rose 34% to US$13bn last year.
Total spending on non-game subscription apps on the Google Play store was smaller than on the Apple App store, but growth in spending was higher on the Google Play Store at 42%.
The top subscription apps on the Play store in the US were Google One, Disney +, Pandora, Twitch and HBO Max.