1st Jul 2014 08:22
LONDON (Alliance News) - 7digital Group PLC saw its shares fall Tuesday despite saying that it does not expect Blackberry Ltd's decision to shut down the music and video sections on the Blackberry World app store to hold back its financial performance for the year.
7digital shares were down 18% at 14.99 pence Tuesday morning.
The digital music and radio services company, which has a contract with Canadian handset maker Blackberry, issued a statement Tuesday following Blackberry's decision last month to close the music and video sections of BlackBerry World and replace it with the Amazon Apps Store, after partnering with Amazon to make 240,000 Android apps available to its users. Blackberry said last month that it will close the music and video sections of its store, Blackberry World, on July 21.
7digital said Tuesday that it does not expects Blackberry's decision to hit its full-year results, compared to current market expectations, and it continues to work with Blackberry under its existing contract, which provides for the continuation of a music service in the event that Blackberry were to close its own music store.
"7digital understands that it is BlackBerry's intention, after the closure of its own storefront, to continue to provide its users with access to the music they have stored in their 'lockers' using the company's services," said 7Digital in its statement.
"7digital is also working with BlackBerry on an alternative solution for the purchase of new music and will update the market further when the specifics have been agreed," it added.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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