7digital Group PLC Year End Trading Update (3021U)
January 17 2017 - 1:00AM
UK Regulatory
TIDM7DIG
RNS Number : 3021U
7digital Group PLC
17 January 2017
17 January 2017
7digital Group plc
("7digital" or "the Company")
Year end trading update
7digital (AIM:7DIG), the B2B digital music and radio services
company, today issues a trading update for the year ended 31
December 2016.
7digital performed well in the second half of the year; the
Company delivered against the Board's commitment to achieve
profitability by the year-end, and returned an operating profit for
the final quarter. Results for the year are in line with market
expectations, including a modest gain from the strength of the US
dollar. The Board remains committed to being profitable at the
operating level for the full year in 2017.
Total Group revenue grew by 7.2% to GBP11.1m, with good growth
across all revenue streams. The Group achieved its target of GBP1m
of annualised cost savings by the year end.
The cash balance at 31 December 2016 was GBP730,000.
During Q4 2016, 7digital was awarded contracts with a combined
value of approximately GBP1.6m, including set up fees and monthly
recurring revenues, with growth coming both from new customer wins
and from existing customers to whom 7digital is providing
additional services. These contracts extend 7digital's customer
base and activity in a number of strategically important sectors,
such as mobile telco services, radio, high resolution (Hi-Res) and
automotive, continuing also to extend the geographic reach of our
services. During the final quarter, 7digital also signed a further
label development deal so that it is now working with all three of
the major record labels as clients.
7digital's market continues to show accelerating growth. BPI,
leading British music industry association, announced last week
that audio streams served in the UK grew by 68% in 2016 to 45
billion. Likewise, in the US, Nielsen reported streaming 76%
year-on-year growth.
The Group continues to make particular progress in Hi-Res audio
with its strategy being further validated at the recent Consumer
Electronics Show ("CES") in Las Vegas. The record industry and
hardware manufacturers - including Sony and Samsung - came together
at CES to highlight the benefits of higher quality digital sound.
In particular, the MQA streaming technology which 7digital has
pioneered received significant attention.
Simon Cole, Chief Executive of 7digital, said:
"The second half of our financial year 2016 was always an
important time for 7digital and I am pleased that we delivered on
our commitment to reach operating profit by the year end and
continued to make good progress in line with our stated strategy.
The New Year has started well and we remain confident that the
Group will be profitable at the operating level for the full year
2017."
Enquiries:
7digital Group 020 7099 7777
Simon Cole, Chief Executive
Matt Honey, Chief Financial Officer
Holly Ashmore, PR Manager
finnCap (nominated adviser and broker) 020 7220 0500
Geoff Nash / Carl Holmes - Corporate Finance
Malar Velaigam / Mia Gardner - Corporate
Broking
Weber Shandwick (financial PR agency)
Nick Oborne - NOborne@webershandwick.com
Tom Jenkins - TJenkins@ webershandwick.com
About 7digital (http://about.7digital.com) 020 7067 0000
7digital is a B2B digital music and radio services company. The
core of its business is the provision of robust and scalable
technical infrastructure and extensive global music rights used to
create music streaming and radio services for a diverse range of
customers - including consumer brands, mobile carriers,
broadcasters, automotive systems, record labels and retailers.
7digital also offers radio production and music curation services,
editorial strategy and content management expertise.
7digital fosters industry growth and innovation by simplifying
access to music for clients such as Onkyo, Fnac, Musical.ly, Global
Radio and E.Leclerc. From years of being the largest independent
producer of programming for the BBC, launching Radioplayer in
multiple territories, and powering services for partners like HMV,
Panasonic and ROK Mobile, 7digital is perfectly positioned to lead
innovation at the intersection of digital music and next-generation
radio services.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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