7digital Group PLC Trading Update and Contract Wins (3632M)
July 28 2017 - 1:00AM
UK Regulatory
TIDM7DIG
RNS Number : 3632M
7digital Group PLC
28 July 2017
28 July 2017
7digital Group plc
("7digital" or "the Company")
Trading Update and Contract Wins
Current Trading
7digital (AIM:7DIG), the B2B digital music and radio services
company, today issues a trading update for the half-year ended 30th
June 2017.
7digital performed well in the first half of the year. Total
Group revenue grew by 13% to GBP5.93m from GBP5.25m in H1 2016,
with growth across the high margin licencing and creative revenue
streams particularly strong. Licensing revenues rose by 25% with
the key monthly recurring revenues up by 27%. The cash balance at
30(th) June 2017 was GBP1.3m.
During the first half of 2017, 7digital was awarded contracts
with a combined value of approximately GBP5.0m, including set up
fees and monthly recurring revenues. These included contracts with
DTS for work in the automotive sector, the world's first full MQA
high quality streamed music service with HDtracks and the re-launch
of TriPlay's eMusic service in the US.
MediaMarktSaturn, Europe's largest retailer of consumer
electronics, also became a new 7digital customer after the
completion of the acquisition of 24-7 Entertainment on June 20(th)
. The Company has a three-year contract for existing "Juke" music
services in Germany and the Netherlands totalling GBP11m, and a new
contract for development of future services worth GBP6m. The
acquisition is expected to add approximately GBP5m to 7digital
revenues in 2017 and more than GBP8m in 2018.
New Contract Wins
7digital is pleased to announce today that it has signed a
two-year deal with Global Eagle Entertainment Inc. (Global Eagle).
Global Eagle is a leading worldwide provider of inflight
entertainment content to the airline industry and offers Wi-Fi,
movies, television, music, interactive software and portable
inflight entertainment services to a number of regional and
flagship carriers. Customers of Global Eagle include Southwest
Airlines, Norwegian Air, Emirates, Japan Airlines, Singapore
Airlines, Qatar Airways, Air France and flydubai. 7digital will
provide Global Eagle with technology, access to music, web
development expertise, and rights holder reporting for new inflight
services launching in Q4 2017 across a number of territories.
The Company has also agreed a three-year deal with French
company Deedo SAS to power a new streaming service across 27
markets. The focus of the service, due to launch in Q4 2017, is to
cater for listeners in Africa and the African diaspora with Pan
African music catalogues. 7digital will provide technology, access
to music and web app development for the service.
In addition, 7digital has signed a deal with US-based company
Fan Label, a dynamic new music fan engagement platform set for
release in September, to provide access to the Company's preview
clip catalogue for a new service. 7digital will also handle
licensing and rights holder reporting. The contract is for a
minimum initial term of two years.
As detailed at the recent AGM, the Board now expects 2017 to
result in a much reduced loss when compared to that of 2016. The
Board remains confident of substantial revenue growth in the second
half of this year and expects that 2018 will be a year of
profitability and positive operating cash flow as the full benefits
of the 24-7 acquisition are realised.
Simon Cole, Chief Executive of 7digital, said:
"We have made a strong start to the year, at a time when we were
also concluding our deal with MediaMarktSaturn to acquire the 24-7
business. That acquisition is already making a contribution and, as
previously announced, we expect it to make a significant
contribution to our full year revenues.
It is also pleasing to see, amongst our recent customer wins, a
new area of business opening up with the addition of our first
in-flight entertainment client. As the digital music industry
continues to expand into new areas of current music consumption,
7digital is well positioned to be the provider to the many new
services which will emerge".
Enquiries:
020 7099
7digital Group 7777
Simon Cole, Chief Executive Officer
Matt Honey, Chief Financial Officer
Holly Ashmore, PR Manager
finnCap (nominated adviser and 020 7220
broker) 0500
Geoff Nash / Carl Holmes - Corporate
Finance
Mia Gardner - Corporate Broking
Weber Shandwick (financial PR
agency)
Nick Oborne - NOborne@webershandwick.com
Tom Jenkins - TJenkins@ webershandwick.com
020 7067
About 7digital (http://about.7digital.com) 0000
7digital is the global leader in end-to-end digital music
solutions. 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, Global Radio and
Musical.ly. 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, Electric
Jukebox and Panasonic, 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
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