7digital Group PLC – Interim Results

7digital Group PLC – Interim Results

7digital Group plc (AIM: 7DIG), the global leader in B2B digital music solutions, today announces its interim results for the six months ended 30 June 2018.

Highlights

  • Strong progress in bolstering position as the world’s leading business-to-business platform in streamed music and radio services
  • Accelerating high-margin revenue growth:
    Total revenues up 52% to £9.3m (H1 2017: £6.1m)
    Licensing revenues up 49% to £6.0m (H1 2017: £4.0m)
    Content revenues up 84% to £2.1m (H1 2017: £1.1m)
    Monthly Recurring Revenues up 36% to £4.3m (H1 2017: £3.2m)
  • Gross Profit up 48% to £6.6m (H1 2017: £4.4m)
  • Strengthening partnerships with broad-based, international clients including all the major music labels, media companies, auto manufacturers and mobile operators
  • New proprietary digital music services launched for Europe’s largest retailer of consumer electronics and entertainmentMediaMarktSaturn in Germany and the Netherlands, with Spain to follow in the coming months
  • Building sales momentum – contract wins include US streaming service 8tracks, music video platform Triller (29 million users, across 14 countries and five continents), live music specialist PEEX, and a global leader in provision of music to the retail and hospitality industry
  • Advancing other high-growth opportunities across a broader service offering including radio production and music curation services, editorial strategy and content management expertise
  • On track to consolidate acquired businesses and technology platforms H2 2018 leading to annual overhead savings estimated at £5m
  • Focused on achieving operating profit and positive cash flow by the end of this financial year

Chief Executive, Simon Cole, commented: “Both our timing and positioning in the buoyant streamed music market couldn’t have been better, as demonstrated by these excellent half-year results showing revenues up 52% to £9.3m.  With expected annual cost savings of circa £5m following the consolidation of the two businesses acquired last year, our target to realise operating profit and positive cash flow is highly achievable. We are excited about the future given the increasing interest from key international, cross-industry blue-chips and look forward to maintaining the current sales momentum.”

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