7digital boosts US radio-streaming portfolio with SBS’ La Musica
Gross profit for 7digital Group, the London-headquartered international digital-music service provider and radio services company, rose in the first half of this year just as it added US radio operator Spanish Broadcasting System (SBS) to its growing list of clients.
Gross profit increased to £2.48 million in the first half of this year compared to £2.45 million the same period in 2013.
The relative good news comes with the group’s first interim report since its restructuring in June. That month radio-focused UBC Media Group executed a reverse acquisition of 7digital, a pioneer in B2B services to companies seeking their own branded streaming and download services.
The merger, which led to 7digital’s listing on London’s AIM stock exchange, means the first half year to 30 June includes six months of 7digital’s figures and one month of UBC Media Group’s figures.
Although gross margin was up 49% compared to 43% in 2013, the 7digital and UBC Media merger came at a price. Turnover slumped 11% to £5.06 million this year. Pre-tax loss also rose to £2.89 million (from £2.24 million).
However, the company is speeding ahead with ambitions to be the world’s leading supplier of streaming-music services and infrastructure to third-party clients. This year, it has already clinched contracts with Guvera, Onkyo, ROK Mobile and BlackBerry.
Yesterday, 7digital announced it is to create new music offerings, including a streaming-radio service, for SBS, a leading Hispanic multi-media group and radio operator in the US.
SBS’ La Musica online Latin-music platform will now include 7digital infrastructure to support additional streaming services.
“La Musica is a perfect example of the kind of services we are seeing emerging from the world’s more visionary radio companies as radio and streaming music come together,” says Simon Cole, 7digital’s CEO. “Listeners want more from their radio experience and users of streaming-music services want the content curation and ‘lean-back’ experience that radio can offer.”
[Juliana Koranteng]