17th Jun 2014 12:04
LONDON (Alliance News) - One Media IP Group PLC Tuesday said its first-half pretax profit rose by 32%, driven by growth in the streaming music services that are challenging music downloading stores.
In a statement, One Media, which owns rights in music and video, said that it made a GBP344,865 pretax profit in the six months ended April 30, compared with GBP262,180 in the corresponding period a year earlier. Revenue increased to GBP1.5 million from GBP1.3 million, while administrative expenses increased to GBP434,725 from GBP434,555.
Chairman and Chief Executive Michael Infante said that although One Media is not seeing a drop in revenues from the downloading stores such as Apple Inc's iTunes, it is seeing a slowing of growth in that business model.
"Conversely we have seen enlarged growth in the "streaming' stores model as they ingratiate themselves with consumers," Infante said.
However, Infante also acknowledged the challenges faced by One Media amidst big changes in the digital world.
"Streaming music sites such as Spotify and YouTube are beginning to dominate what was, only a short time ago, the majority 'selling space' held by the traditional digital stores such as iTunes," Infante said in a statement.
"We embrace all forms of digital exploitation, but the shifts in digital models today are demanding and require us to keep ahead of the curve on all our distribution services. We are constantly monitoring trends and keep ahead by training our team in new methods of digital marketing utilising social media," Infante added.
One Media paid a 0.071 pence interim dividend. Last year, One Media declared a 0.078 pence interim dividend.
One Media shares were Tuesday quoted at 14.75 pence, untraded.
By Samuel Agini; [email protected]; @samuelagini
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