7digital (AIM: 7DIG), the global leader in B2B end-to-end digital music solutions, announces its interim results for the six months ended 30 June 2022.
Financial Highlights
· Total revenue increased by 21% to £3.9m (H1 2021: £3.3m), including licensing revenue growth of 45% to £2.5m (H1 2021: £1.7m)
· Gross margin improved to 70.2% (H1 2021: 62.6%)
· Achieved adjusted positive EBITDA of £0.03m (H1 2021: loss of £1.0m)*
· Operating loss reduced to £0.2m (H1 2021: £1.9m)
· Cash and cash equivalents of £0.03m as at 30 June 2022 (H1 2021: £0.5m); as at 27 September 2022, cash and cash equivalents were £0.6m**
* Adjusted to exclude other adjusting items, amortisation, foreign exchange, depreciation and share-based payments (see note 5 to the financial statements )
** Including fundraising announced on 23 September 2022
Operational Highlights
· Secured 5 new licensing customers and 3 contract expansions or extensions, including:
o A new contract worth at least £1m with a pan-Asian consumer services company
o A contract expansion worth at least €2.2m with a B2B music streaming service
o Further progress in social media industry with a new two-year contract with Lomotif, one of the top worldwide social video-sharing apps
· Sustained ramp-up in licensing revenue post period; as at 27 September 2022 the total contracted licensing revenue for full year 2022 is 43% greater than that generated in 2021
Paul Langworthy, CEO of 7digital, said:
“This was a great six months for 7digital. We delivered strong revenue growth and achieved adjusted EBITDA profitability as the new and expanded contracts we won last year and in the early part of this year began to ramp up. We continued to win new customers and sign renewals with existing customers, many of which are multi-year agreements. Some of these deals also include significant usage terms, which we expect to drive further increases in revenue as these clients scale their own services.
“We entered the second half of the year delivering against a strong contracted order book and with a solid new business pipeline. The business has already secured a 43% increase in contracted platform licensing revenue for FY 2022 over FY 2021. As a result, we are on track to deliver strong revenue growth for 2022 and we look forward to reporting on our further progress.”
Enquiries
7digital c/o 020 4582 3500
Paul Langworthy, CEO
About 7digital ( www.7digital.com )
7digital is the global leader in B2B end-to-end digital music solutions. The core of its business is the provision of robust and scalable technical infrastructure and extensive global music rights used to create music streaming and radio services for a diverse range of customers – including consumer brands, mobile carriers, broadcasters, automotive systems, record labels and retailers. 7digital also offers radio production and music curation services, editorial strategy and content management expertise.
7digital fosters industry growth and innovation by simplifying access to music for clients. From years of being the largest independent producer of programming for the BBC and powering services for partners like Soundtrack Your Brand, Global Eagle, GrandPad and Fender, 7digital is perfectly positioned to lead innovation at the intersection of digital music and next-generation radio services.
