One Media Regulatory News (OMIP)

One Media iP Group Plc - Half-year Report

PR Newswire

London, June 26

29 June 2020

One Media IP Group Plc

(“One Media”, the “Company” or the “Group”)

Interim Results for the six-months ended 30 April 2020

One Media iP (AIM: OMIP), the digital music rights acquirer, publisher and distributor, is pleased to announce its interim results for the six-month period ended 30 April 2020.

Financial Highlights

Operational Highlights

Michael Infante, CEO of One Media iP, commented:

“As the world adjusts to life under COVID-19, we continue to observe changing habits in both music consumption and genres being streamed as a result of the dramatic changes to people’s daily routines. Coinciding with this, we have also seen an uplift in streaming of children’s, classical and ambient music, all of which favour One Media’s diverse catalogue.

“I am very pleased with our staff’s fortitude in decamping from our offices at Pinewood Studios and working efficiently on a remote basis, which is a tribute to both technology and team effort. This ‘new normal’ lends itself to our continuing operations and we have successfully proven our robust business model in the first six months of 2020.”

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. The person who arranged the release of this information is Michael Infante, Chief Executive Officer of the Company.

For further information, please contact:

About One Media iP Group Plc

One Media is a digital music rights acquirer, publisher and distributor. The Group specialises in purchasing and monetising intellectual property rights with proven, repeat income streams. One Media adds value to its content by maximising its availability in over 600 digital stores globally, including Apple Music, YouTube, Amazon and Spotify.

One Media’s music is also widely used for synchronisation in film, TV and digital gaming whilst its video content is primarily viewed on YouTube where One Media operates over 20 YouTube channels as a certified partner.

One Media is listed on the London Stock Exchange on the AIM index, under the symbol ‘OMIP’.

For further information on One Media iP: www.omip.co.uk

TCAT: www.tcat.media

Harmony IP: www.harmonyip.com

Chairman’s Statement

Business and Performance Review

The Group made significant progress in H1 2020 by continuing to enhance the value of its existing catalogue and leveraging its in-house capabilities to grow and protect shareholder value. As outlined in the recent AGM Statement of 22 May 2020, substantial advancements have been made during the period in each of the Company’s key operational divisions, including the core business of purchasing and monetising digital music rights, as well as its service offerings, the Technical Copyright Analysis Tool (“TCAT”) and Harmony IP.

Responding to interest from major players across the music industry, One Media continues to examine possibilities to scale its proprietary anti-piracy technology, TCAT, by sourcing third party interest and possible partner initiatives for wider implementation across the sector.

Encouraging progress has also been made towards launching the Group’s unique intellectual property (IP) equity release programme, Harmony IP. The platform, which looks to grant music rights holders with advanced access to the future earnings of their IP by purchasing a portion of their rights upfront, has received good levels of early interest from artists and the Group is working to take these discussions forward. Harmony IP will enable One Media to diversify its portfolio and acquire music rights with recurring income streams at favourable multiples.

Finally, the Group remains focused on enhancing the value of its existing catalogue and is committed to ensuring its content is fully optimised to maximise discoverability across global markets. Synchronisation deals offer One Media an additional avenue through which to generate income, and during the period a number of the Group’s owned tracks were used in TV series, such as American drama series, ‘Dare Me’, and films, such as Netflix’s original film, ‘Coffee & Kareem’.

COVID-19

Notwithstanding the challenging macro-economic environment presented by COVID-19, One Media retains a healthy cash position and continues to trade in line with expectations. The safety and well-being of employees is paramount and the Group adheres to government and Public Health England guidance at all times. The Group’s staff remain fully employed in its businesses and continue to work efficiently on a remote basis, effectively liaising with customers and suppliers to ensure business continuity.

Financial Overview

The Group has continued to manage its financial position over the six-month period to 30 April 2020 with profitable operations. Group consolidated revenue was £2,032,598 for the six-months ended 30 April 2020 (30 April 2019: £1,585,687).

Profit before tax amounted to £399,236 (30 April 2019: £143,738) and EBITDA increased 93% to £757,678 (2019: £392,192).

During the period, the Company has not issued new shares as consideration for acquisitions and has used existing cash resources as consideration. Cash balances at 30 April 2020 were £1,076,134 (30 April 2019: £5,184,301).

Dividend

On 6 May 2020 One Media was delighted to inform the market of a return to its dividend policy. The Group declared an interim dividend of 0.055p per ordinary share, which was paid earlier this month. The Board had considered its policy regarding dividends and has established that the objective of its Dividend Distribution Policy is to maintain an equilibrium between retention of profit to finance long-term growth plans whilst rewarding shareholders for their support.

Industry

Despite significant uncertainty caused by COVID-19, the global recorded music market has demonstrated resilience, with music-streaming platforms such as Spotify recording an increase in paid subscribers. Global online music streaming subscriptions grew 32% year-on-year (YoY) reaching 358 million subscriptions in CY 2019, according to the latest findings from ‘Counterpoint Research’. This is driven by the availability of content like podcasts, that attracted people towards the platform and eventually turned them as subscribers. Additionally, promotional activities such as price cuts in subscriptions in emerging markets and bundled offers from telcos added to the growth. It is expected that online music streaming subscriptions will grow more than 25% YoY to exceed 450 million subscriptions by the end of 2020. The latest figures published by the International Federation of the Phonographic Industry (IFPI) for 2019 show that streaming now accounts for over half of global revenues, and this number is expected to grow as streaming devices become increasingly accessible and global audiences continue to expand.

Outlook

With its highly scalable business model, One Media enters H2 2020 in a strong position to expand its geographical footprint, exploit its new product offerings and capitalise on the growth of streaming globally. Its track record of acquiring low-risk content with proven, recurring income streams further supports the Group’s position as it looks for opportunities to enhance shareholder value within this growth market.

The Board looks forward to updating shareholders on progress in due course.

Claire Blunt

Chair of One Media

Unaudited Consolidated Statement of Comprehensive Income

For the six months ended 30 April 2020

Unaudited Consolidated Statement of Financial Position

As at 30 April 2020

Unaudited Consolidated Statement of Changes in Equity

For the six months ended 30 April 2020

Unaudited Consolidated Cash Flow Statement

For the six months ended 30 April 2020

Notes to the Interim Report

For the six months ended 30 April 2020

1.  Nature of operations and general information

One Media iP Group Plc and its subsidiaries’ (“the Group”) principal activities are the acquisition and licensing of audio-visual intellectual copyrights and publishing for distribution through the digital medium and to a lesser extent through traditional media outlets.

One Media iP Group Plc is the Group’s ultimate parent company incorporated under the Companies Act in England and Wales. The address of One Media iP Group Plc registered office is 623 East Props Building, Goldfinger Avenue, Pinewood Road, Iver Heath, Buckinghamshire, SL0 0NH.

The financial information set out in this Interim Report does not constitute statutory accounts. The Group’s statutory financial statements for the year ended 31 October 2019 are available from the Group’s website. The auditor’s report on those financial statements was unqualified.

2.  Accounting Policies

Basis of Preparation

These interim consolidated financial statements are for the six months ended 30 April 2020. They have been prepared following the recognition and measurement principles of IFRS. They do not include all the information required for full annual statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 October 2019.

This unaudited interim statement has not been subject to a review by the Group’s auditors James Cowper Kreston.

Comparatives

The comparative periods represent the unaudited results for the six months period ended 30 April 2020 and the audited twelve months figures for the year ended 31 October 2019.

3.  Earnings per share

The calculation of the earnings per share is based on the profit for the financial period divided by the weighted average number of shares in issue during the period.

The diluted earnings per share would be lower than the basic profit per share as the exercise of warrants and options would be dilutive.

4.  Share capital

5. Interim statement

Copies of this statement are available from Group's registered Office at:

623 East Props Building, Goldfinger Avenue, Pinewood Road, Iver Heath, Buckinghamshire, SL0 0NH.