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7digital Group PLC on Wednesday came closer to breaking even in its half-year as expenses narrowed and revenue rose.
7digital is a London-based music licensing provider.
Shares surged 33% to 0.25 pence each in London on Wednesday morning, though the stock remains down 72% over the past 12 months.
Pretax loss in the six months to June 30 narrowed to £330,000 from £1.9 million a year prior. Revenue grew 21% to £3.9 million from £3.3 million. Despite the higher revenue, cost of sales decreased to £1.17 million from £1.22 million. Administrative expenses were reduced by 23% to £3.0 million from £3.9 million.
Back in July, 7digital said it signed a long-term contract with Switzerland-based music fintech company Utopia Music AG. It did not disclose financial details.
Further, on Wednesday 7digital said: ‘In progress with existing licensing customers, [7digital] secured 3 contract renewals or expansions during the first half of the year versus 4 in the first half of 2021, reflecting the value of 7digital's platform and services to its customers. This included a contract expansion with a B2B music streaming service customer, worth a minimum of €2.2 million over a three-year period. 7digital has been providing services to the customer since 2016, with contract renewals on an annual basis. This latest contract expands the relationship to a long-term agreement, providing the group with greater visibility over revenue.’
Looking ahead, 7digital expects ‘strong’ total revenue growth for 2022.
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