RE: RE: 7DIG Overview2 Oct 2021 21:51
Music platform 7Digital Group PLC (AIM:7DIG) is out of tune after its latest update.
Half year revenues rose 6% to £3.3mln but its operating loss increased from £1mln to £1.9mln.
The company signed long-term contracts with seven new licensing customers during the period, and a further two since then, as it continued its strategic expansion in its key growth markets of fitness and wellness, social media and artist monetisation.
But some contracts the company had expected to sign in the second half have been delayed until the first half of next year.
So full year revenues will be slightly below expectations and it will not achieve positive earnings this year.
It hopes some of the contracts, which represent significant revenue, will be signed in the near future.
It is also in advanced discussions over a banking facility, which are expected to conclude shortly.
Chief executive Paul Langworthy, said: "We are currently in advanced negotiations with multiple new customers representing significant revenue. However, the pace of closing deals is dependent on our clients completing their licensing deals with labels and in some instances we have found this is taking longer than we had hoped.
"In the second half, we plan to accelerate our stated strategic vision to align ourselves, through innovation, with the interests of the artists as well as consumers of their music. Alongside consolidating our leading position in our core segments of fitness and wellness and social media, our aim is for 7digital to become a leading platform providing artist services beyond traditional streaming such as creating direct-to-fan opportunities including NFTs, livestreaming and merchandising on a global scale. As a result, we remain very confident in the outlook for the business in the medium- to long-term and the opportunities ahead."
Meanwhile its shares are down 45.71% or 0.4p at 0.48p.
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