7digital turns 'operationally profitable' in Q4
By Iain Gilbert
Date: Thursday 10 Dec 2020
(Sharecast News) - Shares in digital music solutions group 7digital surged on Thursday after the company announced it had become "operationally profitable" for the first time.
7digital said it had seen "significant progress" in three key areas, social media, home fitness and artist monetisation, as evidenced in new contracts signed in the second half and renewed or extended contracts with the likes of ROXI, GrandPad, jazzed and Moodagent.
As a result, the AIM-listed company achieved operational profitability in the last quarter of 2020, while revenues also increased in the second half.
Chief executive Paul Langworthy said: "7digital is gaining momentum in each of our three key areas. Our strategy of focusing on social, home fitness and artist monetisation demonstrates our ability to create value for new markets in a rapidly evolving music industry.
"As we ramp up activity in these markets and continue to support and improve services for current clients, we anticipate substantial growth in our business and revenues in 2021."
As of 1000 GMT, 7digital shares had rallied 37.27% to 1.51p.
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