23rd Apr 2018 16:53
LONDON (Alliance News) - 7digital Group PLC on Monday said it had a positive start to its financial year, as it signed three major contracts during the first quarter and established an advisory board in the US.
The digital music firm said that trading in the first quarter of 2018 was on track, with turnover "slightly ahead of budget".
7digital said its total licensing revenue grew in the period to GBP2.3 million, up from GBP1.6 million in the first quarter of 2017.
The company said it won several contracts and service launches in the quarter, including agreements with a leading music service for retail, a new live music experience company, and another China-based social network following on from the company's existing contract with musical.ly.
Looking ahead, the company plans to announce a new agreement with unnamed creator of a proprietary hardware and accompanying app. 7digital said it "significantly" invested in the new technology, which offers live music digitally immediately after concerts.
The company said that it expects all three agreements to contribute to its revenue in 2018 financial year and beyond.
In addition, 7digital said it has appointed former software company Gracenote Chief Executive Officer John Batter as chair of its recently established US advisory board.
"This is a very strong start to the new year for us as we track towards profitability for the full year and complete the integration of our 24-7 acquisition last year," said Chief Executive Simon Cole.
"We see much of our future growth coming from the Americas and I am pleased today to be able to announce John Batter's appointment to lead our new advisory board there; his contacts and senior guidance to our team will be important as we target significant US clients," Cole added.
The stock closed 9.9% higher at 4.45 pence per share on Monday afternoon.
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