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7digital Group PLC (7DIG)

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Thursday 13 April, 2017

7digital Group PLC

Agreement renewal, contract, acquisition

RNS Number : 3886C
7digital Group PLC
13 April 2017
 

 

13 April 2017

                                                                                                        

7digital Group plc

("7digital" or "the Company")

 

Musical.ly renewal, Ubithings contract win and acquisition of FlowRadio®

7digital (AIM:7DIG), the global leader in end-to-end digital music solutions, is pleased to announce it has renewed its agreement with musical.ly, one of the world's fastest growing social video networks. The new contract doubles the number of territories in which 7digital will provide access to music for the musical.ly service, extending its reach from 30 to 60  territories around the world.

The Company has also signed a deal with French startup Ubithings SAS to power a subscription streaming service for an initial term of 3 years. The service will be used with Ubithings' innovative smart audio player Prizm (www.meetprizm.com), now available in France with further territories to follow, which selects music according to the moods and tastes of the people in the room.

These deals will contribute to 7digital's revenues for 2017.

In addition, 7digital announces that it has agreed to acquire the FlowRadio® technology, platform and customers from Imagination Technologies Group plc. FlowRadio® is an internet radio aggregation service which offers instant access to over 25,000 stations worldwide. 7digital signed an agreement in 2015 to license the FlowRadio® technology and platform internationally on behalf of Imagination.

The commercial terms are confidential but, as part of the acquisition, 7digital will be acquiring responsibility for three staff and all current contracts from IMG. FlowRadio® is also expected to contribute to the Company's 2017 revenues.

 

Further to the announcement on 10th March regarding agreed heads of terms with MediaMarktSaturn, 7digital's acquisition of 24-7 Entertainment is progressing as expected. If the acquisition completes, it is expected that it will materially strengthen revenues from 2017 and be earnings enhancing in 2018.

 

Simon Cole, CEO of 7digital, commented:

"We believe the future of a broader digital music industry is in adapting to new modes of consumption - whether that is through apps like musical.ly where users share and engage with music, or by tapping into the connected home and using new interfaces to ensure music fits easily into consumers' busy lives. The acquisition of FlowRadio® ensures we have access on our platform to live streams and listen-again content from every major world radio station, enabling us to support and deliver seamless listening experiences to consumers, in-car and as part of the connected home."

 

 

 

 

Enquiries:

 

7digital Group

020 7099 7777

Simon Cole, Chief Executive

 

Matt Honey, Chief Financial Officer

Holly Ashmore, PR Manager

 

 

 

 

finnCap (nominated adviser and broker)

 

020 7220 0500

Geoff Nash / Carl Holmes - Corporate Finance

 

Malar Velaigam / Mia Gardner - Corporate Broking

 

 

 

 

Weber Shandwick (financial PR agency)

Nick Oborne - [email protected]

Tom Jenkins - [email protected] webershandwick.com

 

About 7digital (http://about.7digital.com)

 

020 7067 0000

7digital is the global leader in end-to-end digital music solutions. The core of its business is the provision of robust and scalable technical infrastructure and extensive global music rights used to create music streaming and radio services for a diverse range of customers - including consumer brands, mobile carriers, broadcasters, automotive systems, record labels and retailers. 7digital also offers radio production and music curation services, editorial strategy and content management expertise.

7digital fosters industry growth and innovation by simplifying access to music for clients such as Onkyo, Global Radio and musical.ly. From years of being the largest independent producer of programming for the BBC, launching Radioplayer in multiple territories, and powering services for partners like HMV, Electric Jukebox and Panasonic, 7digital is perfectly positioned to lead innovation at the intersection of digital music and next-generation radio services.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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