logo-loader
view7Digital Group PLC

7Digital boosted by move to higher margin licensing

“It is clear that, as the market for streamed music and radio services grows, so does 7digital,” said CEO Simon Cole.

smartphone,_listening,_sized_56a0a4df016c1.png
Losses are expected to have narrowed, and in 2016 7Digital aims to achieve profitability.

Music firm 7digital (LON:7DIG), in an update ahead of its full year financial results, highlighted an improvement to higher margin licensing revenues.

As a result it expects financial results for 2015 to be in line with management expectations.

The company said licensing revenue was up 21% to £6.5mln for the year, and said gross margins rose to 70%.

At the same time, revenue from production was up 49% at £1.8mln while a move away from low margin sales meant content revenue was down about 50% at £2mln.

7digital added that earnings losses for the year will have narrowed, in line with expectations.

"We are pleased with the progress made in 2015 - it was a year in which our business model was validated by the growth rate of our recurring licensing revenues,” said Simon Cole, 7digital chief executive.

“It is clear that, as the market for streamed music and radio services grows, so does 7digital.

“We remain on track to achieve profitability by the end of 2016 and look forward to continued growth this year and beyond."

Separately, 7digital also announced a new contract win with eMusic.

The customer, which was recently takeover and is being re-launched, will access licensed content from 7digital's global catalogue and will rely on 7digital for rights holder reporting.

Quick facts: 7Digital Group PLC

Price: 0.21 GBX

AIM:7DIG
Market: AIM
Market Cap: £5.16 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Australian gold producers making 'excellent margins and may start to hedge'

Alto Capital's Tony Locantro says he can see a great deal of volatility ahead for the gold price. He adds that once we're out the other side of this current health crisis the participation rate in gold is going to increase. ''Australia gold producers are making excellent margins and I...

1 day, 19 hours ago

2 min read