(Alliance News) - Shares in 7digital Group PLC jumped on Tuesday after the company said its 2019 outcome will be in line with management expectations and the company will be operationally profitable in 2020 due to the new revised business strategy and further reduction in costs.
7digital shares were up 32% in London at 0.22 pence each in morning trade.
In 2018, the company recorded a pretax loss of GBP12.2 million on a revenue of GBP19.9 million.
"The second half of the year was a period of transformation for the company with a new board, additional funding, further cost reductions and a revised strategy utilising 7digital's market-leading technology to capitalise on the growth in music streaming, " the company explained.
The music streaming solutions provider said the cost reduction programme has reduced cost run rate by over 50% and resulted in annual savings of over GBP7 million in 2019.
For 2020, 7digital has already secured much of its expected revenue for the year and, as a result, is on track to achieve operational profitability by the end of the second quarter.
Paul Langworthy, the company's chief executive, said: "The company continues to make a positive impact on powering streaming music opportunities in developed and emerging markets. This, together with a substantially improved financial position, healthy pipeline, client renewals, and rigorous operational management, gives me confidence that 7digital is well positioned to execute on our strategy and continue to lead the growth of music streaming."
By Tapan Panchal; tapanpanchal@alliancenews.com
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