7digital Group PLC Year End Trading Update (3878E)
09 February 2018 - 6:00PM
UK Regulatory
TIDM7DIG
RNS Number : 3878E
7digital Group PLC
09 February 2018
9(th) February 2018
7digital Group plc
("7digital" or "the Company")
Year end trading update
7digital (AIM:7DIG), the B2B digital music and radio services
company, today issues a trading update for the year ended 31
December 2017.
Unaudited revenue for 2017 is expected to be up 52% at GBP17.3m
(2016: GBP11.3m). The Company's contracted and billed revenues for
the period were in fact GBP18.6m, with revenues from major new
client MediaMarktSaturn ("MMS") at GBP6.5m. However, of this MMS
revenue, GBP1.3m is to be recognised in Q1 2018 rather than in the
2017 financial period leading to reported revenue of GBP17.3m.
Losses at Adjusted LBITDA level are expected to be significantly
reduced from the previous period and be better than market
expectations.
Following the acquisition of 24-7 in June, operational
restructuring has already begun and has resulted in the closure of
the Company's office in Paris and a reduction in headcount. The
Board is pleased to report good progress towards its goal of
profitability in the current financial year. As previously
announced, the Company has continued to make progress in signing
new clients to its platform. This is in line with the Company's
Platform as a Service ("PaaS") model. The PaaS model typically
includes an upfront fee and an ongoing monthly recurring fee to
support the platform.
Simon Cole, Chief Executive of 7digital, commented:
"2017 was a year which marked a major transformation at
7digital. Our acquisition in June of 24-7 and, with it, the
contract to supply services to MediaMarktSaturn throughout Europe
has cemented our market leading position as a business-to-business
platform in the rapidly growing market for streamed music and radio
services. Perhaps more importantly, it led to a profitable H2 and a
significantly improved EBITDA loss for the year, ahead of
expectations. This provides the right foundation for full year
profitability in 2018."
This announcement contains information which, prior to its
disclosure, was inside information for the purpose of the Market
Abuse Regulation.
Enquiries:
020 7099
7digital Group 7777
Simon Cole, Chief Executive
Matt Honey, Chief Financial Officer
Holly Ashmore, PR Manager
Arden Partners (nominated adviser 020 7614
and broker) 5900
Chris Hardie / Ruari McGirr /
Benjamin Cryer
About 7digital (http://about.7digital.com)
7digital is the global leader in B2B end-to-end digital music
solutions. The core of its business is the provision of robust and
scalable technical infrastructure and extensive global music rights
used to create music streaming and radio services for a diverse
range of customers - including consumer brands, mobile carriers,
broadcasters, automotive systems, record labels and retailers.
7digital also offers radio production and music curation services,
editorial strategy and content management expertise.
7digital fosters industry growth and innovation by simplifying
access to music for clients such as Onkyo, Global Radio and
musical.ly. From years of being the largest independent producer of
programming for the BBC, launching Radioplayer in multiple
territories, and powering services for partners like Panasonic, TDC
and Electric Jukebox, 7digital is perfectly positioned to lead
innovation at the intersection of digital music and next-generation
radio services.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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