7digital has issued its financial results for the financial year 2017 and offered a view of its progress in the first half of 2018. The top line numbers include revenues growing 50% to £16.8m, a 74% jump in licensing revenues to £11.61m and a 63% reduction in adjusted EBITDA loss to £1.6m.
It reported an operating loss of £3.76m, down 33% from the £5.6m reported in 2016. For the first half of this year, it saw total sales (“before full consideration of revenue recognition”) grow 57% to £9.33m. Last June, it acquired 24-7, its major competitor in Europe, from MediaMarktSaturn.
“This not only increased our European penetration, but also led to expanding our contract to deliver new music services for MediaMarktSaturn, Europe’s largest electronics retailer, who also become a key shareholder,” said Simon Cole, chief executive of 7digital, in a statement on the filing.
“7digital is one of only two companies in the world to be able to provide full white-label streaming services to businesses who want to use music as part of their offering.”
Looking at future growth, the company said smart speakers and AI will be “the catalysts for re-imagining music streaming in the home and car”.
Looking even further into the connected devices sector, it proposed that “connected aeroplanes are set to yield further opportunities as more airlines look to offer improved and differentiated inflight entertainment services to their passengers”, noting it signed a two-year deal in 2017 with inflight entertainment Global Eagle Entertainment to work along these lines.
The company also referenced its restructuring during the reporting period, notably the closing of its Paris office and the laying off of seven staff members there. Also of note, the company did not pay an interim or final 2016 dividend, adding that “[t]he Board of directors is not proposing a final dividend in the current year”.
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