28th Apr 2016 08:46
LONDON (Alliance News) - 7digital Group PLC said Thursday trading continues to be in line with the its expectations that it will achieve profitability "by the end of 2016", after having been awarded six new contracts since the start of the year.
Last month, 7digital posted its 2015 results which showed its loss had widened over 2014, hitting GBP7.9 million for the year, compared to GBP2.6 million the year earlier, after revenue was flat at GBP10.4 million but the group booked a large loss on investments.
The digital music and radio services company said its Chairman Don Cruickshank will confirm at its annual general meeting on Thursday that the company is on track to reach profitability by the end of the year, pointing to the six contracts it has been awarded, which together over their duration have a total value of GBP3.9 million, including set-up fees and monthly recurring revenues.
The chairman will say that following its acquisition of digital streaming music provider Snowrite SAS in January, 7digital continues to strengthen its management team, having recently appointed Philippe Decottignies as Chief Technology Officer and Edward Kershaw as Chief Commercial Officer.
Shares in 7digital were down 12% at 6.25 pence on Thursday.
By Hannah Boland; [email protected]; @Hannaheboland
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