LONDON (Alliance News) - 7digital Group PLC on Wednesday said it has secured five new contracts over the course of the first quarter of 2016 as it posted a widened loss in 2015.
The digital music and radio services company said it has signed contracts since the start of the year with Global Radio, i.am+, Red Bull Media House, Klassik Radio and Mus, with the contracts worth a total of GBP3.6 million over their lifetimes.
7digital will provide back-end technology and access to its licensed catalogue to Global Radio and has extended its agreement with i.am+, the wearables technology company headed by former Black Eyed Peas member Will.i.am. No further details were provided on the deals with Red Bull Media, Klassik Radio and Uruguay-based Mus.
The new contracts were announced as 7digital said its total loss for 2015 hit GBP7.9 million, compared to GBP2.6 million a year earlier. The loss was driven by the group booking a GBP4.8 million loss on investments, compared to a GBP1.9 million gain a year earlier. This was caused by a loss taken on the sale of its investment in audio content platform Audioboom Group PLC.
Revenue was broadly flat at GBP10.4 million against GBP10.2 million in 2014, with high-margin licensing revenue up 21% and monthly recurring revenue up 72%. This offset a big decline in content revenue, which nearly halved.
"I am pleased with our progress in 2015. The group delivered against its key objectives of growing its customer base across an increasing range of geographies, strengthening the quality and resilience of its revenue base and improving its overall financial performance," said Chief Executive Simon Cole.
7digital also said Chris Dent has stood down from his role as chief financial officer to pursue other opportunities. He will be replaced on an interim basis by Matt Honey while 7digital searches for a permanent successor.
7digital shares were up 7.5% to 9.00 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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