7digital acquires 24-7 Entertainment and collects £3m from shareholders
7digital, as reported by Music Ally, just announced a new deal to acquire European rival 24-7 Entertainment from its current owner MediaMarktSaturn.
CEO Simon Cole commented in a statement:
We would expect to significantly strengthen our licensing revenues if the transaction completes as anticipated.
News of the 24-7 deal arrives as 7digital announced its preliminary full-year results for 2016, and revealed plans to raise up to £3m from new and existing shareholders. The company’s revenues rose 15% to £11.9m ($14.5m) in 2016 – after currency gains. 7digital says it was profitable on an EBITDA basis in the final quarter of 2016 too.
According to 7digital, the number of music streams that it delivers reached 228m in December 2016 alone, up from 72.6m for the whole of 2015, as it capitalised on partnerships like its deal with social app Musical.ly.
By the way, Spotify generated more than 7digital’s 2016 revenues every three days in 2015, for example. Meanwhile, despite the EBITA profit in Q4, 7digital still recorded a net loss of £5.2m for the year – down from £7.9m in 2015. Still, in the world of B2B digital music, 7digital is consolidating its position and aiming for more growth ahead.