5th Feb 2016 12:19
LONDON (Alliance News) - One Media IP Group PLC said Friday it expects to report a 30% fall in pretax profit and a 13% fall in revenue for its most recently ended financial year to end-October.
The company attributed this decline primarily to a "unfavourable currency exchange rates" and to a shift towards a streaming model from the consumer digital downloading model.
However, One Media said it remains profitable, with a comfortable level of cash resources. It will continue its investment programme "in line with the changing market".
One Media will report its full year results March 7.
"I have previously commented on the shift in consumer habits, and the turbulent time that our industry faces. Digital stores are realigning their content offering in line with the consumer demographic that they are pursuing. This turbulent time will effect our entire industry while the consumer adopts their preferred route to music consumption," said Chairman and Chief Executive Officer Michael Infante in a statement.
"It is our belief that as emerging digital markets mature, such as China, India and Russia, new consumers for the groups content via the subscription model will provide growth. One Media is reactive enough to meet these changes and is taking all steps to get ahead of the digital curve," Infante added.
Shares in One Media IP Group were untraded Friday afternoon. They last closed at 6.73 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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