B2B digital-music firm 7digital has published its group financial accounts for 2016, through Companies House in the UK.
The results confirm earlier financial statements: revenues up 15% to £11.9m in 2016, with net losses narrowing from £7.9m in 2015 to £5.3m in 2016.
CEO Simon Cole reiterated that 7digital was profitable in the final quarter of last year “at a trading level” buoyed by a record sales month in December. That month, 7digital’s streaming business “delivered 228m music streams to over 16m people”.
At the time the financials were completed on 5 June, 7digital had yet to complete its acquisition of European rival 24-7 Entertainment, but that deal was completed a couple of weeks later.
One note of caution was struck by the company’s independent auditor in the accounts, however, which noted that completing the 24-7 acquisition was just part of what 7digital needs in the next year.
“In order to continue operations for the next 12 months, the Group is dependent on the completion of the transaction, cost cutting measures and contracting with significant new customers and the directors have prepared forecasts on this basis. This condition indicates the existence of a material uncertainty which may cast doubt as to the Group’s ability to continue as a going concern,” reported the auditor.
For its part, 7digital said it is confident it has “adequate resources to continue in existence for the forseeable future”, but notes that “these forecasts and projections are dependent on the Group successfully securing additional external finance as and when required”.
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