7digital Group PLC Contract wins, notice of results and Q1 update (7019L)
23 April 2018 - 4:00PM
UK Regulatory
TIDM7DIG
RNS Number : 7019L
7digital Group PLC
23 April 2018
23 April 2018
7digital Group plc
("7digital" or the "Company")
Contract wins, notice of Preliminary results and Q1 trading
update
7digital Group plc (AIM: 7DIG), the global leader in B2B digital
music solutions, is pleased to announce a positive start to its
2018 financial year. Trading in the first quarter ("Q1") matched
the company's expectations, with turnover slightly ahead of budget.
Altogether, contracts with a lifetime value of GBP2.3m were agreed
in Q1; the impact of these contracts commencing contributed to
total licensing revenues for Q1 of GBP3.6m; this compares with
total licensing revenues of GBP1.6m in Q1 2017.
Contract wins
Amongst the contract wins and service launches in Q1 were deals
with a leading music service for retail, a new live music
experience company, and another China-based social network
following on from the Company's existing contract with
musical.ly.
The transition of music provided in the retail and hospitality
industry to digital is part of the mass market adoption of digital
anticipated in 7digital's strategy. The new client, who cannot be
named for reasons of commercial confidentiality, is a market leader
in this field, providing music in venues and commercial outlets
throughout the world. The contract has involved a significant setup
fee and ongoing monthly recurring revenues which will grow as new
territories are launched. To date, the service has been rolled out
using the 7digital platform in 31 territories.
Another part of the industry where innovative new digital
services are emerging is live music. One of the Company's new
contracts is with the creators of a proprietary hardware and
accompanying app, whose mission is to offer live music digitally
immediately after concerts. This new technology has received
significant investment and will be announced publicly in the coming
weeks.
Existing digital markets continue to show growth and the Company
has signed a two year deal with a new Chinese company in the
rapidly expanding field of "social video" where users create their
own videos based on popular hits. 7digital has had a contract with
the market leader in this sector - musical.ly - for some two years
and is now seeing the market grow. The new customer will initially
launch its service in two territories.
7digital will provide the respective clients with access to
music and technology and all three deals will contribute to
7digital's revenues for 2018 and beyond.
The Company's relationship with major label Universal Music
Group has also deepened through a partnership in which 7digital
provides access to music for a recently-announced initiative
designed to foster innovation in the music industry. Capitol Music
Group (CMG), a division of Universal Music Group (UMG), has
launched the Capitol Innovation Center, which is based in the
iconic Capitol Tower and the company's state-of-the-art Studios in
Hollywood.
New US Advisory Board
7digital is also pleased to announce that it has established an
Advisory Board to support the Group's US operations, particularly
regarding strategic guidance and corporate partnership support.
John Batter, former CEO of Gracenote and responsible for driving
that company's sale to Nielsen, has been appointed to the position
of Chair of the US Advisory Board. John Batter has also held senior
roles at media companies DreamWorks Animation (President of
Production), EA Mobile (General Manager) and M-GO (CEO &
Director), and serves as advisor with investment management firm
Shamrock Capital Advisors.
Preliminary Results
7digital will be announcing its Preliminary results for the year
ended 31 December 2017 at the end of May 2018.
Simon Cole, CEO of 7digital, commented:
"This is a very strong start to the New Year for us as we track
towards profitability for the full year and complete the
integration of our 24-7 acquisition last year. Whilst issues of
commercial confidentiality will always prevent us, before services
are launched, from revealing the identities of many of our new
clients, I am pleased to see the global scale of the business we
are winning continuing to grow and that the clients we are winning
now are in the business of delivering digital music to the mass
market in all sorts of innovative ways.
We see much of our future growth coming from the Americas and I
am pleased today to be able to announce John Batter's appointment
to lead our new Advisory Board there; his contacts and senior
guidance to our team will be important as we target significant US
clients."
For further information please contact:
7digital 020 7099 7777
Simon Cole, Chief Executive
Matt Honey, Chief Financial Officer
Holly Ashmore, PR Manager
Arden Partners (nominated adviser, broker
and bookrunner) 020 7614 5900
Chris Hardie/Ruari McGirr/Benjamin Cryer
- Corporate Finance
Fraser Marshall - Corporate Broking
About 7digital
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 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
TSTLFFLISAIFFIT
(END) Dow Jones Newswires
April 23, 2018 02:00 ET (06:00 GMT)
7digital (LSE:7DIG)
Historical Stock Chart
From May 2024 to Jun 2024
7digital (LSE:7DIG)
Historical Stock Chart
From Jun 2023 to Jun 2024