Up 48% in the last three months, the priced drifted 8% in morning trade after the music streaming specialist said it returned to the black in the final quarter of 2016.
Revenues for the 12 months ended December 31 were up 7.2% at £11.1mln, while the company achieved cost savings of £1mln. It was sitting on £730,000 of cash at the period-end.
"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,” said chief executive Simon Cole.
“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."