B2B digital-music firm 7digital has issued a trading update showing strong growth in its full-year revenues. The company says it expects to report revenues of £17.3m for 2017, up 52% year-on-year.
“Losses at Adjusted LBITDA level are expected to be significantly reduced from the previous period and be better than market expectations,” claimed the company in its update to the markets.
7digital says operational restructuring is already underway following its acquisition of 24-7 Entertainment last June, including “the closure of the company’s office in Paris and a reduction in headcount”.
“Our acquisition in June of 24-7 and, with it, the contract to supply services to MediaMarktSaturn throughout Europe has cemented our market leading position as a business-to-business platform in the rapidly growing market for streamed music and radio services,” said CEO Simon Cole.
“Perhaps more importantly, it led to a profitable H2 and a significantly improved EBITDA loss for the year, ahead of expectations. This provides the right foundation for full year profitability in 2018.”