28 Jun 2017 07:00
7digital Group plc
("7digital" or "the Company")
AGM Statement
7digital (AIM:7DIG), the global leader in B2B end-to-end digital music solutions, today holds its 2017 Annual General Meeting.
Don Cruickshank, Chairman, will invite the management team to make a presentation on the benefits of the recent acquisition of 24-7 Entertainment ("24-7") from MediaMarktSaturn ("MMS") (the "Acquisition") and the plans to integrate the 24-7 business, based in Copenhagen, into the 7digital technology platform. The presentation will be made available on the Company's website (http://about.7digital.com) later today.
The Chairman will also make the following statement:
As announced on June 20, the Company estimates that the Acquisition will increase 7digital licensing revenue in 2017 by approximately £5m and more than £8m in 2018.
The Company believes that by increasing the investment in its core platform in 2017, it can accelerate the integration of the two businesses. This will allow for quicker cost reductions and higher profitability in 2018. The Board now expects 2017 to result in a combined loss before interest, tax, depreciation and amortisation of approximately £1.5m, much reduced when compared to that of 2016.
In 2018 profits are anticipated to increase significantly to an estimated EBITDA of £3.4m compared with previously anticipated £1.9m.
The Board is confident that 2018 will be a year of profitability and positive operating cash flow as the full benefits of the Acquisition are realised.
Enquiries
7digital Group | 020 7099 7777 |
Simon Cole, Chief Executive | |
Matt Honey, Chief Financial Officer Holly Ashmore, PR Manager | |
finnCap (nominated adviser and broker) |
020 7220 0500 |
Geoff Nash / Carl Holmes / Simon Hicks - Corporate Finance | |
Mia Gardner - Corporate Broking | |
Weber Shandwick (financial PR agency) Nick Oborne - NOborne@webershandwick.com Tom Jenkins - TJenkins@ webershandwick.com
About 7digital (http://about.7digital.com) |
020 7067 0000 |
7digital is the global leader in 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 such as Onkyo, Global Radio and musical.ly. From years of being the largest independent producer of programming for the BBC, launching Radioplayer in multiple territories, and powering services for partners like HMV, Electric Jukebox and Panasonic, 7digital is perfectly positioned to lead innovation at the intersection of digital music and next-generation radio services.
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014