7digital sees bright future after forecasting 2017 revenue rise
B2B streaming digital music and radio services company 7digital is expecting a sharp rise in revenue for 2017 after the company's acquisition of rival 24-7 in June and announced that it moved back into the black over the second half of the financial year.
That acquisition brought with it a contract to provide services to MediaMarktSaturn (MMS) which alone contributed £6.5m of new sales.
As a result, unaudited revenues were seen 52% higher at £17.3m, with a further £1.3 of secured billings during the period from MMS to be recognized in the first quarter of 2018.
Simon Cole, chief executive of 7digital, said: "2017 was a year which marked a major transformation at 7digital. Our acquisition in June of 24-7 and, with it, the contract to supply services to MediaMarktSaturn (MMS) 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."
Besides the upturn in sales, the company forecast significantly reduced losses at the adjusted LBITDA level for 2017 in comparison to the previous year, thus allowing it to exceed market expectations.
Progress also continued to be made in signing new clients to its platform.
"This provides the right foundation for full year profitability in 2018," said Cole.