logo-loader

7Digital boosted by move to higher margin licensing

Published: 20:23 21 Jan 2016 AEDT

smartphone,_listening,_sized_56a0a4df016c1
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.

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

11 hours, 59 minutes ago