14 Aug 2014 07:00
7digital Group plc
("7digital" or "the Company")
Update re BlackBerry Contract and new territories from Guvera
7digital (AIM:7DIG), the digital music and radio services company, is pleased to announce that it has reached agreement with BlackBerry for the continuing provision of music services on BlackBerry devices.
All users of the current BlackBerry World storefront have been sent details of new arrangements for them to continue to use their "lockers" for both storing music as well as purchasing new music. Users will be given 12 months to transition to new lockers, and 7digital has reached a contractual arrangement with BlackBerry to manage these transition arrangements. In addition, 7digital will manage the new lockers and has created a new app for BlackBerry users from which they can continue to purchase music.
7digital will also take over the sales of music from BlackBerry, now retaining all profit margin earned on track sales which had previously been shared with Blackberry.
Blackberry will pay 7digital fees totalling £705,000 in the current financial year and £315,000 in the next financial year up to the end of the existing contract in August 2015. The new arrangements with BlackBerry will not result in any changes to current market expectations for the financial performance of 7digital.
In addition, 7digital is also pleased to announce today an expansion of its contract with existing customer Guvera. The Guvera streaming music service, available on Lenovo mobiles and tablets, is currently powered by 7digital in UAE, Saudi Arabia and India. Guvera will provide its service in an additional eight emerging market territories. As the new territories are added, 7digital's monthly recurring revenues will increase.
Simon Cole, CEO of 7digital, Commented:
"We are pleased to have agreed new terms with BlackBerry to provide its users with access to music. This arrangement ensures both the continuation of our relationship with BlackBerry and our ability to sell music to its users. The news today from Guvera underscores the speed at which new streaming customers are growing their businesses and our revenues with it. This sector of the market is replacing the traditional download businesses and the model of solid monthly business to business revenues from these customers is what will power our business in future."
ENDS
Enquiries:
7digital Group | 020 7453 1600 |
Simon Cole, Chief Executive | |
Chris Dent, Chief Financial Officer | |
finnCap (nominated adviser and broker) | 020 7220 0500 |
Charlotte Stranner/ Simon Hicks - Corporate Finance | |
Victoria Bates - Corporate Broking | |
Investec (joint broker) | 020 7597 5970 |
Dominic Emery | |
Junya Iwamoto | |
Powerscourt | 020 7250 1446 |
Juliet Clarke / Simon Compton / John Elliott |
About 7digital
7digital aims to simplify access to the world's music and radio. Our robust, scalable digital music platform and flexible APIs are used to power comprehensive music and radio services for leading consumer brands, mobile carriers, broadcasters, automotive systems, retailers, record labels, artists and agencies. Alongside proven technology, we offer global music rights, award-winning radio production services, and content management expertise, making us a leading global partner in this space.
7digital has powered streaming and download services for global brands like Samsung, T-Mobile, HMV and BlackBerry, has partnered with media giants such as Yahoo and Sirius XM, and is the largest independent producer of radio programming for the BBC. 7digital Group is ideally placed to lead innovation at the intersection of digital music and next generation radio services.