Swedish podcast network Acast has released its first quarter earnings report for 2025.
Net sales for the quarter was USD 50.1 million, representing a 30% increase. The growth was mostly driven by North America, where net sales increased by 65% over the same time previous year. Europe also contributed positively, with a 17% sales increase, while other markets saw a 1% decrease compared to the same period last year.
Organic net sales grew by 26%. The number of listens was 1,109 million, a 1% decline from the same period last year. Meanwhile, the average revenue per listener climbed by 31%. Despite a decrease in listens compared to last year, the company says the outcome represents the highest listens in four quarters, alongside continued growth in their unique listener reach.
The gross margin for the first quarter was 37%, owing to a lower gross margin in their fast expanding North American business. Their operating expenses climbed by 19% year on year, primarily due to their efforts aimed at capturing ROI in strategically prioritized markets.
Acast says is prioritizing network growth and offering brands and creators tools and features that boost engagement with their audience to capitalize on the increasing popularity of podcast advertising. The company recently signed an ad sales partnership with podcast brand The Athletic, adding over 35 sports titles with more than 100 million annual global listens to its network.
Earlier this year, Acast also acquired Wonder Media Network (WMN), a creative company that creates audio, digital, video, experiential and social campaigns for clients such as Nike, Pfizer and Mercedes. Under the agreement, WMN joined Acast’s existing creative team to form a new division, Acast Creative Studios. Although the studios’ team is based in the U.S., it is available to take on Canadian projects and support brands in the region.
The company’s partnership with Amazon Music, launched last October, also continued to pay dividends this quarter. The collaboration has boosted independent Canadian podcasters, featuring select creators in a special collection on Amazon Music’s homepage, Acast’s platform and social networks. During the last quarter, Acast also signed an agreement with TED Audio Collective, securing rights for sales, hosting, ad distribution and monetization of video versions of TED podcasts.
Looking ahead, the company expects organic net sales growth of 15% between 2025 and 2028.
“While acknowledging the uncertain macroeconomic environment, we have not experienced any impact on our campaign deliveries in the quarter,” said Acast CEO Ross Adams. “Having navigated economic downturns previously, we are confident in our ability to adapt our efforts and cost levels quickly and effectively if needed, to ensure profitable growth.”
