B2B digital-music firm 7digital has published its financial results for 2018, although it’s events since the end of last year that have put the company in its current worrying position.
So, 7digital’s group revenues grew by 19% in 2018 to £19.9m (around $24.8m) but its net losses grew from £4.8m to £11.9m. However, the financials also detail the fact that since then, 7digital’s relationship with its largest customer, retailer MediaMarktSaturn, has ended, while it has also transferred technology and staff to Danish telco TDC.
“The loss of MMS, its associated companies, and TDC, being marginally in excess of 50% of the 2018 sales, is a fundamental loss to the Company,” explain the financials. And as we reported last month, 7digital is now trying to raise £4.5m by the end of July, else it will be “highly likely that the Company would need to be placed into administration”.