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7digital Group reports sharp increase in 2017 revenue

The music streamer recorded a second half profit and is on track for a profitable 2018
music streaming
The company is looking for a full year profit in 2018.

Music streaming group 7digital Group PLC (LON:7DIG) increased sales by 52% to £17.3mln in the year just ended, while significantly reducing losses.

In June, 7digital acquired 24-7 Entertainment, its only European competitor.

READ: 7Digital showing there's more than one way to profit from the digital music revolution

It has the contract to supply services to MediaMarktSaturn, Europe’s largest electronics retailer.

Contracted and billed revenues jumped to £18.6mln, with £6.5mln coming from MediaMarktSaturn, though £1.3mln is to be recognized in the first quarter in 2018.

Simon Cole, chief executive of 7digital, said in the company's year-end trading update that 2017 was a year of major transformation for the company.

WATCH: 7digital the world leader in streamed music services

As well as lower losses than expected, Cole said the group was profitable in the second half and on track for a full year profit in 2018.

Shares rose 2.5% to 5p.

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