7digital Group PLC COVID-19 Update (9216K)
27 Abril 2020 - 1:00AM
UK Regulatory
TIDM7DIG
RNS Number : 9216K
7digital Group PLC
27 April 2020
27 April 2020
7digital Group plc
("7digital" or "the Company")
COVID-19 Update
7digital (AIM:7DIG), the global leader in B2B end-to-end digital
music solutions, provides an update on the potential impact of
COVID-19 on the Company's operations and the measures it is taking
to mitigate the resulting risks.
In the middle of March 2020, in light of the escalating threat
from COVID-19, 7digital reacted quickly to prioritise the safety of
its workforce and client services. The Company's advanced
technology, with increased use of virtualised applications and
storage in the cloud, has enabled a seamless and secure transition
to remote working with no impact on 7digital's delivery and service
capability for clients.
As previously stated, 7digital started 2020 strongly with
contract renewals, new contracts signed, and a healthy pipeline. As
a result of COVID-19, the Company expects certain new contracts and
renewals to shift from Q2 2020 into Q3 or Q4 2020. In response, the
Company has implemented a number of cost-saving measures to support
the liquidity and financial position of the business including
organisational restructuring and securing a short-term rent
concession on the Company's leased property. These measures are
expected to reduce monthly running costs and generate in-year
savings of approximately GBP750k.
With respect to previous guidance on mid-year profitability, the
Company now expects to achieve operational profitability during the
second half of this year. It will continue to adapt quickly to
ongoing environmental changes, and the Company is well positioned
to further optimise the business model and position 7digital for
future growth.
Paul Langworthy, Chief Executive Officer of 7digital, said:
"COVID-19 is top of mind as we prioritise the health of our
workforce and support our customers and partners. We have acted
quickly to implement measures to protect our liquidity during the
crisis and we are proud of the response of our employees. We are
also encouraged that the Company has not lost any customers during
this period and has continued to win new business.
"The industry is seeing consumers adapt to the new environment
by spending more time at home using streaming entertainment, while
there is also a rise in music consumed in other formats such as
gaming and home fitness. 7digital is well-positioned to benefit and
grow from incumbents and new entertainment formats that would
leverage music to drive loyalty in their customer base. This
strengthens the Board's confidence that the Company is
well-positioned to accelerate growth when normal trading resumes.
The Company will continue to monitor the situation closely and
update the market as appropriate."
Enquiries:
7digital 020 7099 7777
Paul Langworthy, CEO
Arden Partners (Nominated Adviser and Broker) 020 7614 5900
Richard Johnson, Benjamin Cryer
Luther Pendragon (Financial PR) 020 7618 9100
Harry Chathli, Joe Quinlan, Elliot Fradd
Notes to Editors:
About 7digital ( www.7digital.com/ )
7digital is the global leader in B2B 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. From years of being the largest
independent producer of programming for the BBC and powering
services for partners like Global Radio and Fender, 7digital is
perfectly positioned to lead innovation at the intersection of
digital music and next-generation radio services.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014. With the
publication of this announcement via a Regulatory Information
Service, this inside information is now considered to be in the
public domain.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDFIFIISRIDFII
(END) Dow Jones Newswires
April 27, 2020 02:00 ET (06:00 GMT)
7digital (LSE:7DIG)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
7digital (LSE:7DIG)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024