Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
When will they be listed on Nasdaq?
Morning all - I have the Triller Investor Presentation. Shared below:
file:///C:/Users/david%20hurst/Downloads/Triller%20Investor%20Presentation.q1updated.pdf
Very good point, and one I have absolutely no idea as to the answer.
I was under the impression that NFTs, once sold, are the owners 100%, which would suggest there is no sell-on %.
Either way, I don't see any downside from offering them on the platform, only upside revenue.
The Aces (Jun 15th) to be the first to offer NFT on the platform. I will be tuning in as it's a Tuesday night..so will see how the process works. They have a fairly decent following on social media, Insta + twitter in particular..Nice to see an American band on the platform. Only one way from here IMO.
https://www.emusiclive.com/The_Aces/The_Aces_Pride_Stream_GMT
I can second that...email from 7Dig IR team below:
Thank you for your email and for your support as a shareholder.
A date has not yet been announced for the FY 2020 Results but it will be before the end of June deadline. The broker note is in progress and hopefully won’t be too much longer.
With regards to eMusic Live, the platform continues to host a steady stream of artist performances, as you can see on the website here: https://www.emusiclive.com/.
I’m glad to hear you enjoyed the performance you watched. At the time of the Alfie Boe announcement on 1 April, the platform had hosted more than 50 livestreams, with many more held since including from cities around the world: https://www.businesswire.com/news/home/20210414005574/en/eMusic-Live-to-Feature-Livestreams-from-Cities-Around-the-World. These act as important introductions to big regional markets in the same way as the Alfie Boe performance enhanced eMusic Live’s reputation in the UK.
I hope those responses help to address your concerns. Let me know if there is anything else I can help with.
Kind regards,
There is no recent financial information. The 2020 results will be released within the next 4 weeks, as will the broker note.
AudioBoom comparison – Podcasting company
After posting their Full year 2020 results, the SP doubled within a week. Digital Music consumption over the past 12 months has seen extraordinary growth. 7Digital will have seen massive growth in revenues due to their revenue share model. I am predicting a monster 2020 results with positive EBITDA for the first time since company inception. Load the boat now!
HIGHLIGHTS FOR THE YEAR ENDED 31 DECEMBER 2020
Financial and operating highlights
· 2020 revenue of US$26.8 million, up 20% on 2019 (US$22.3 million). Year-on-year growth outpaced the predicted wider industry average growth by 93% (1)
· Adjusted EBITDA (2) loss of US$1.7 million represents an improvement of 42% on 2019 (US$3.0 million loss)
· Brand advertiser count of 311 as at 31 December 2020, up 11% on December 2019 (280)
· Global revenue per 1,000 downloads (eCPM) for December 2020 increased to US$38.99, up 32% (December 2019: US$29.60)
· Continued strong improvement in performance related to our ad technology, with revenue from our automated ad network in 2020 of US$2.5 million, up 258% on 2019 (US$0.7 million)
· Access to capital of US$6.6 million as at 31 December 2020, representing Group cash of US$3.3 million and US$3.3 million of the SPV loan facility remaining undrawn. US$0.7 million of the previously drawn non-revolving SPV loan was repaid to SPV Investments Limited in November 2020
Key commercial developments
· Continued expansion of the Audioboom Originals Network with the launch of Raising A Pro, Crime Weekly (a co-production with Main Event Media) and RELAX!
· Enhanced our premium sales network through new commercial partnerships with leading podcasts including The Fantasy Footballers, Strange & Unexplained, Hoot and a Half, That Gaby Roslin Podcast, Meditation Minis, and Team Never Quit
· Entered or renewed several strategic partnerships focused on enhancing distribution, data and monetisation. With the impact of Covid-19, these partnerships became even more important in bolstering Audioboom's operations and maximising resilience to the global pandemic
Post year end highlights
· Extended co-production and commercial partnership with Formula 1 until 2023. Audioboom will produce the F1: Beyond The Grid and F1 Nation podcasts, and provide exclusive advertising sales services
· Climbed to 5th largest US podcast publisher, and retained position as largest international podcast publisher in Australia, in January 2021's Triton Digital Podcast Report
· Strong start to 2021 having already signed advertising bookings representing over 80% of the current market forecast for 2021 Group revenue - further details will be provided in Q1 trading update which is expected to be released on 14 April 2021
Interim Results - RNS from Sep 2020
7digital Group plc (AIM: 7DIG), the global leader in B2B end-to-end digital music solutions, announces its interim results for the six months ended 30 June 2020.
Financial Highlights
The Company continued to make significant progress on cost restructuring and positioning itself for operational profitability in H2 2020. The new management and board instated in 2019 have transformed the business:
· Revenues of £3.1m (H1 2019*: £4.5m)
· Gross margin increased to 66% (H1 2019*: 64%)
· Administrative expenses reduced by 51% to £3.1m (H1 2019*: £6.4m)
· Operating loss reduced by 73% to £0.9m (H1 2019: loss of £3.2m)
· Adjusted EBITDA loss improved 72% to £0.9m (H1 2019*: loss of £3.3m)
· Fully diluted loss per share £0.04 (H1 2019: loss per share £0.77)
· Cash and cash equivalents of £4.3m at 28 September 2020 (30 June 2020: £183k; 31 December 2019: £149k)
*H1 2019 figures exclude Juke sales and TDC settlement in 2019 as shown in note 2.3
Operational Highlights
· Repositioned the Company as the leading global B2B music platform-as-a-service (MPAAS) company built to enable innovation and growth in the music industry
· Implemented new product, commercial and marketing strategies to sign and expand traditional B2B music services
o Supported the launch of jazzed, the world's first dedicated audio-visual streaming service for jazz and jazz-influenced music
o Added integration with Shopify, the second largest e-commerce platform in a world, to support artist stores through Single Music contract
o Contract renewals with several clients including Soundtrack Your Brand, GrandPad and Global Eagle Entertainment
· Reacted quickly to COVID-19 to prioritise the safety of the workforce and ensure the continuity of client services. The Company's advanced technology in conjunction with increased use of virtualised applications and cloud-based technologies enabled a seamless and secure transition to remote working with no impact on 7digital's delivery and service capability for clients.
Post-period Events and Outlook
· The Company is well-positioned to leverage our technology and services to expand traditional models and support post-COVID growth opportunities in new models and markets such as social media, online fitness, and artist monetisation
o On 12 August 2020, company announced contract with Triller to power the world's fastest growing social music video app
o Partnered with eMusic to launch eMusic Live, a first-of-its-kind virtual concert and artist monetisation platform
o Signed six-month deal with a global technology company to support new music-based experiences
o Signed contract with in-home cycling new-to-market Apex Rides, with a pipeline of additional high-profile global companies
· Raised £6m (gross) in oversubscribed equity placing and £1m credit facility to drive growth in immediate commercial opportunities
· On track to reach operational profitability in H2 2020
· Built active
Mirriad Comparison
Not a direct competitor to 7Dig exactly, however, they are a tech company who operate in the music industry with a SAAS model..so there are many similarities. Mirriad – Digital product placement advertising company. They have just released their 2020 results.
Market Cap = £145 million …Has touched £200 million this year..!
It had revenues of £2million in 2020, with losses of £9 million!!!
Admittedly they have heaps of cash in the bank to expand their product, but they are miles behind in terms of 7Dig in that respect. Mirriad's cash burn rate is off the scale, losing money hand over fist....don't have a clear path to profitability, yet they are valued 5x 7Digital despite all of this. If you take away their cash (raised through dilution) then they would be ceasing operation. Bankrupt. kaput.
7Dig are operationally profitable, have a highly productized offering, have profit margins close to 80% for any new business signed....have £cash if need be...signing deals in massive markets...I really don't understand the negativity (apart from the SP, which of course is disappointing). The fundamentals are exceptional.
GLA
Financial overview
· 2020 revenue up 91% to £2.18m (2019: £1.14m)
· Operating loss reduced by 25% to £9.09m (2019: £12.17m)
· Cash consumption down 27% to £8.06m (2019: £11.01m)
· Net assets at 31 December 2020 up 84% £35.3m (2019: £19.2m)
· Cash and cash equivalents at 31 December 2020 up 85% to £35.4m (2019: £19.1 million)
re: £5m profit - I am being conservative..
Given they are now at a stage where their model is highly productized, margins of new business at 80% +, then I can see this figure being far far higher.
With regards to eMusic Live, the platform continues to host a steady stream of artist performances, as you can see on the website here: https://www.emusiclive.com/.
At the time of the Alfie Boe announcement on 1 April, the platform had hosted more than 50 livestreams, with many more held since including from cities around the world: https://www.businesswire.com/news/home/20210414005574/en/eMusic-Live-to-Feature-Livestreams-from-Cities-Around-the-World. These act as important introductions to big regional markets in the same way as the Alfie Boe performance enhanced eMusic Live’s reputation in the UK.
I think Emusic Live could be a big ADDITIONAL earner to 7Digital. Everyone needs to remember that it only launched last Autumn, these things take time.
GLA
I highly recommend reading the below research article on MUSIC consumption by Matthew Ball.
Matthew Ball is the Managing Partner of Epyllion Industries, which operates a pre-seed and seed venture fund, as well as a corporate and venture advisory arm. He is also a Venture Partner at Makers Fund. From 2016-2018, Matthew served as the global Head of Strategy for Amazon Studios, and prior to that was a Director at The Chernin Group's Otter Media, a digital media investment company founded by long-time Newscorp COO and 20th Century Fox CEO Peter Chernin.
https://www.matthewball.vc/all/audiotech
I've also attached the Equity research note on Music from Goldman Sachs from May 2020.
https://www.goldmansachs.com/insights/pages/infographics/music-in-the-air-2020/report.pdf
See extract below re: Music licensing (7Digital have 80 million + tracks in their music catalogue).
Emerging opportunities for music licensing, e.g. short-form video, e-fitness While the traditional $9.99 / month on-demand subscription model continues to dominate much of the growth in music industry revenue, we are seeing new ways in which companies and record labels are monetizing music in sync with technological innovation. Short-form music and music-based video content has grown quickly, driven by the growth of global social video applications such as TikTok, which features 15-second videos often set to music. TikTok has reportedly been downloaded more than one billion times since its launch in 2017 and has a global reach of nearly 400 million monthly unique visitors, spending over 10 minutes per day on the platform (per comScore). These platforms enable incremental consumption of music appealing to varied, and often younger, audiences, while presenting the potential to amplify artists and set cultural trends — a trend that is accelerating through the COVID-19 crisis. This could also Exhibit 62: We expect ad-funded streaming revenues for record labels to grow at an 11% CAGR over 2020-30 to reach US$11.4 bn in 2030 Ad-funded streaming revenues, 2014-2030E (record label share, $bn) Exhibit 63: Music accounts for 22% of total views and 5% of content on YouTube YouTube -
At £30 million MCAP, I think 7Digital is a great medium/long term investment....with potential for a spike around the time of the Triller IPO (which is due to commence it's proceedings in June)
I think we have 2 weeks at most to invest in 7digital at these low levels..then we have the Big 3 catalysts.
1 - Triller IPO (which should explode from expected $5 billion valuation)
2. 2020 results (June 30 latest)
3. Broker note for full year 2021 guidance and Valuation (I expect 100 million +)....which is 3x from here.
I appreciate the frustration of many who have bought in above the placing price (2p)....understandably so...
Good luck all
Attachments area
The full year annual results will be published at the absolute latest 30 June (The actual date will need to be relayed to the market approx. 3 weeks beforehand as per regs)
So that means we have max 5 weeks before we find out true figures from 2020…..which is imo likely to be very heavily weighted towards the 2nd half of the year, considering the likes of Triller/Apex Rides were not included in the Interim results from last September 2020. Based on the below figures available in the September RNS, conservatively I estimate Full Year 2020 revs of arpprox £7.5 million (at operational profitability)..
Given the fact we will have nearly 6 months of EXTRA monthly recurring revenue from those since Dec 2021, I would expect significant increase in revs for full year 2021..
I don’t thin revs of £20 million (profit of circa £5 million) is out of the question. The Broker note (Arden Partners) will also be released around the time of the Full year results! Given a conservative PE of 20, then a £100 million valuation is where I see fair value at the point. We are currently at £30 million, so 300% upside at least in the short term would take us close to 4p per share. Personally I see 10p within 12-18 months once the revenues from recent contract wins become more visible.
Good luck all
Financial Highlights
The Company continued to make significant progress on cost restructuring and positioning itself for operational profitability in H2 2020. The new management and board instated in 2019 have transformed the business:
Revenues of £3.1m (H1 2019*: £4.5m)…..Gross margin increased to 66% (H1 2019*: 64%)…..Administrative expenses reduced by 51% to £3.1m (H1 2019*: £6.4m)….Operating loss reduced by 73% to £0.9m (H1 2019: loss of £3.2m)…..Adjusted EBITDA loss improved 72% to £0.9m (H1 2019*: loss of £3.3m)….Fully diluted loss per share £0.04 (H1 2019: loss per share £0.77)