7digital Share Discussion Threads

[monte1] 15/8/2016 11:50

What a shower.

[hope67] 15/8/2016 11:36

Monte1 great contribution if you have something to add I'm all ears.

[trotterstrading] 15/8/2016 08:05

Great posts everyone. I really like the developing story here, I continue to add in anticipation of the Sept Interims which I believe will be very good (reading recent trading update)

[hope67] 14/8/2016 14:41

There appears to be so many layers to 7dig looking forward to Septemebr interims to see if they have managed to break even, hopefully 7dig will go on the Voxmarkets podcast get them back on the radar. With another 60 prospects to possibly add to revenues I think 7dig could be a good recovery share, Img selling out has obviously damaged the share price. But Hendersons and Miton appear to be snapping them up.

#7dig 7digital (AIM:7DIG), the digital music and radio services company, is today pleased to announce a deal with eMusic, a leading music discovery and download-to-own destination. The deal will see 7digital power the eMusic service re-launch and will allow eMusic's new owners to build new features into the service through use of 7digital's technology and content management system. It was announced in October 2015 that TriPlay had acquired eMusic, making the combined entity one of the largest, most comprehensive digital music services in the world, comparable only to Apple iTunes and Amazon with a broad offering of features including its own music store, music player and accessibility on over 14 platforms via the web and apps. TriPlay will offer its millions of active, eclectic and music-savvy users access to tracks from a comprehensive catalogue of more than 25 million songs from every genre. Now, for the first time, eMusic users will have instant access to their extensive music collections, both online and offline, on any device, anywhere in the world. Through the deal, eMusic will access their licensed content from 7digital's global catalogue of over 40 million tracks. eMusic will also rely on 7digital for rights holder reporting and benefit from other enhancements to the service offering. The eMusic service will use 7digital's platform to power and improve its user experience and content offering. Improvements include newly enhanced metadata for classical music that promises to provide better search and discovery of classical tracks and albums, as well as the addition of an extensive library of hi-resolution lossless audio in both 16-bit (CD quality) and 24-bit (premium quality) FLAC. The deal will contribute to 7digital's revenues for 2016.

[hope67] 14/8/2016 14:35

Thank you for your views Someuwin appreciated. The Chairman has a rather impressive CV hopefully he will steer the ship in the right direction.


Sir Donald Cruickshank has been Chairman of Audioboo Limited since April 2010. Sir Donald has served as a director of Qualcomm Incorporated since June 2005. He was Chairman of Clinovia Group Limited from January 2004 to February 2007 and Formscape Group Limited from April 2003 to December 2006 and was a member of the Financial Reporting Council, the body in the UK responsible for oversight of the Accountancy and Actuarial professions and for corporate governance standards, from June 2001 to June 2007.

Sir Donald has extensive experience in a number of areas, including European regulation and telecommunications. Sir Donald’s career has included assignments at McKinsey & Co. Inc., Times Newspapers, Virgin Group plc., Wandsworth Health Authority and the National Health Service in Scotland. Sir Donald served as Chairman of the London Stock Exchange from 2000 to 2003 and as Director General of the UK’s Office of Telecommunications (Oftel) from 1993 to 1998. From 1997 to 2000, he served as Chairman of Action 2000, the UK’s Millennium Bug campaign. In 1998 Sir Donald was appointed as

Chairman of the Government’s Review of the UK banking sector, and from 1999 to 2004, he served as Chairman of SMG plc.

Sir Donald holds an M.A. degree in Law and an honorary L.L.D. degree from the University of Aberdeen and an M.B.A. degree from Manchester Business School, the University of Manchester.

[loobrush] 13/8/2016 21:44

Fair comment someuwin,however it should be noted that since they changed tack into their current market other directors have come on board including

Sir Donald Cruickshank, a director of Qualcomm Inc, non-executive
chairman
Eric Cohen, SVP Corporate Development at Dolby Inc
Mr. McGowan Chairman of HMV,Chief Exec. Goodmans Capital who own 20.3% of the Company's issued share capital.

There is now more than one man, but a team, driving the company forward.
Also the drop in share price was caused by the dumping of stock by Imagination Technologies after the sacking of the MD there who was also a director of 7dig which has caused some uncertainty.
On the plus side is the fact that Miton and Henderson have recently acquired over 6% each of the company.
It is also still relatively early days in this new business where a number of competitors have gone to the wall,but they are still gaining ground. Indeed they may be the first company to actually start making profits as competitors dissapear.
It seems to me that there is also some important news in the offing as refered to in the latest RNS,this will be revealed in the Sept results which I am sure will include a date when 7DIG will be in profit. With 7DIG only valued at £8 million any news on profitability and how this could ramp up in future will give the shares an almighty lift.
We will have to wait till Sept to see.
But you never know , by then the share price could be a lot higher if investors buy in before the results date in anticipation or its tipped in the press.

[someuwin] 13/8/2016 20:27

Hello Hope67

I've deleted my post 779 - it was a bit strong.

I've nothing against S. Cole - I'm sure he's a good bloke. But he is a radio man first and foremost not a businessman at heart - imo.

7DIG are supposed to be at the cutting edge of digital streaming, but make a lot of their revenue from producing radio shows for R4 and R3 (folk, jazz etc).

Making money from streaming is extremely difficult (that's why so many companies doing it are going bust) and I think they need to dump the radio side of things and get someone more dynamic in charge.

BWDIK - its not really my field and if they do reach breakeven by year end then they may be on the up.

...I might even buy back in myself for a punt. But caution is required here.

This is how UBC media performed (with S. Cole at the helm) before it became 7 Digital,...


free stock charts from uk.advfn.com


This is how 7 Digital has performed (With S. Cole at the helm)...


free stock charts from uk.advfn.com

[hope67] 13/8/2016 19:45

Yep that is two lots of 15K

[shrewdmole] 13/8/2016 17:06

Nice large buy report d late yesterday.
Could be tempted to add a few Monday morning.

S

[hope67] 13/8/2016 12:48

Someuwin would appreciate any views you have especially after your comment on Cole

[hope67] 13/8/2016 12:47

7digital is also pleased today to announce its first contract using MQA, the high resolution audio technology. The Company has been contracted to develop desktop and mobile applications and handle rights holder reporting, end user management and payment processing for a customer which will launch an MQA service later this year. High resolution audio was identified by the Company a year ago as an important growth segment within digital music and today's announcement builds upon 7digital's early implementation of MQA download stores, in January 2016.

[hope67] 13/8/2016 12:45

Another investor pointed this out to me.

Interesting tweet from Stuff magazine about MQA format earlier, I think this could be v significant space for 7dig. I suspect this is where they are working with labels as mentioned in last update.

[trotterstrading] 12/8/2016 12:44

Loobrush, yes I noticed that in the update.

"In June this year Guvera, a customer of 7digital, announced a group restructure and put one of its subsidiaries, Guvera Australia Pty Ltd, into administration. Prior to the administration, 7digital worked closely with Guvera to restructure the debt owed to the Company within the Guvera group and to agree a repayment plan. An initial payment of GBP77,000 has already been made, with the Company expecting the balance of GBP818,000 to be repaid over 8 months under the revised repayment plan, pursuant to the restructure."


I take comfort from the fact they have a repayment plan and the fist payment has already been made, look like they expect c.100k per month, so it should soon become apparent if they stick to the plan, not a show-stopper, just a speed bump IMHO

[loobrush] 12/8/2016 12:36

I hold the shares and also consider they could give a big big win if all goes ok
I think that what has kept the share price down is that in the last RNS it said that Guvera owes it £800,000 odd which it is now paying off over 8 months,which is not good at the moment.
However on the flip side, despite that, they haven't needed to raise more funds so cash required to run the business must be ok,so that is very good.
In the same RNS however they seem quite upbeat-so we will have to wait until results which I am expecting will spark the share price into life and back up to 14p at least.

[trotterstrading] 12/8/2016 11:45

Good post over on LSE"JARV55 - it's a very interesting company. If you look at the dynamics at play, emerging technology, market trend for streaming vs. downloads, market leading position with recently decreased competition in this space, a scaleable operation, a timely and complimentary acquisition, with a business that's bordering on profitability (let's not forget 50% of rev in foreign currency so that will provide new momentum) together with ties with industry music players e.g. Warner Music, then this all makes for the classic dynamics of an attractive investment, which looks to be at a discounted share price. I put that down to liquidity, questions over funding (which appears to be okay) and forced sellers (the conditions for 7Dig I think have changed since those forced sellers commenced their exit). I like the management too- they are measured and patient with the comms and managing expectations. Saves significant gyrations in the share price. I sense that when solid news is delivered (start of which will be the MQA tie ups in September results announcement as flagged by Cole). Anyway a few thoughts an of course all IMHO"

[trotterstrading] 12/8/2016 11:22

"The Company has a healthy sales pipeline for the second half of 2016, demonstrated by the contract wins announced today, and the Board remains confident of meeting expectations for the full year and continues to anticipate achieving profitability by the end of 2016." The gross margin increase to 68% is particularly impressive, the French Acquisition also looks set to add significant bottom line.

[shrewdmole] 12/8/2016 09:24

I've had a few last few days here.

A small cap that turns to profitability usually sees a decent rise.

Trotters - your correct the chart looks positive and ready for a run.

S

[trotterstrading] 12/8/2016 09:21

Took a position today I do like good recovery story, double bottom on the chart and good RSI. Looks set to breakout any day now.Someuwin, I take it you don't think the company will hit profitability as per guidance?

[folderboy] 12/8/2016 08:44

Last trade a buy . . .

[hope67] 11/8/2016 23:33

Imagination have hammered the price down Miton and Hendersons are buyers I have bought here because I think that gap on the chart at 14.10 will get filled.

[hope67] 11/8/2016 23:32

1.Potentially very broad customer base including consumer brands, mobile providers, radio stations/broadcasters offering streaming services, automotive, record labels, wearables. Big growth potential for revenue if start tapping into these. 2.Barriers to entry for other new entrants – 7 digital has invested in market leading technology. They have music rights. They also have established and strong relationships within the industry such as with Music content suppliers. 3.2/3 competitors globally at most according to CEO interview. 4.Strong pipeline of customers with 60 new prospects being discussed as well as existing customers looking to expand their activity with 7 digital. 5.Since year end 15, 7digital have acquired Snowite – a leading French music digital streaming provider has and will continue to add to revenues whilst providing cost savings due to what the company believes are big synergies (£500k pa). This has already in 2016, led to new business from a leading e commerce retailer in France who has 34.4% of total share of ecommerce in France. 6.Clients – 7 digital have done a deal in Jan 16 with eMusic which is a leading music provider. eMusic has since been taken over by Triplay which makes the combined entity one of the largest digital services in the world. They have also deals with 2 of the world’s major record labels which will add to 2016 revenues. They have also won work for their high resolution revenue stream. 7.Have geographical presence in 33 countries and hold music licensing rights in 82 so they can take on work fast. Financials 8.7 Digital are currently loss making but confident that they will achieve profitability by end of FY16. They have an impressive 68% gross margin in 2015 (compared to 59% in 2014). This is due to a shift in strategy to reduce their direct music download sales and increase their licencing revenues which are higher margin. They have achieved this as licencing revenues are up 21% overall in 2015 compared to 2014. They are also focussed on a monthly recurring revenue model with their customers and are achieving this with a year on year increase of 12%. With the licencing revenues, 7 digital take a one off licencing fee as well as a monthly fee and also a share of the user related revenues. Revenues are in line with expectations with 2015 £10.4m vs 2014 £10.2m. Gross Profit of £7m (2015) vs £6m (2014) Operating loss for 2015 is £(3.1m) vs £ (4.5)m in 2014. This is reduced due to improved gross margin. Admin costs are the highest cost at £11.3m – with staff costs being £6.7m of this and R&D of £1.7m. Key is to grow revenues and keep focus on strong gross margin. During 2015 7digital disposed of it’s holding in Audioboom resulting in a loss on disposal of £4.8m which caused overall loss for 2015 to be £(7.9m). Cash at end of Dec 15 is £1.7m . According to H1 2016 trading update, the following has happened since year end: Licencing revenues continue to increase. Contract wins continue with £1m won in last 12 weeks. Over 50% of revenues are in foreign currencies which will benefit the company. For transparency (Guvera) 7dig are owed 818K by Guvera who are now insolvent however they have agreed to receive monies over 8 months with 77k having already been received. Average time taken for debtors to pay 7dig is 140 days per the Dec 15 accounts. The move to more monthly recurring revenues should help reduce the average credit period taken on sales. REASONS TO BUY – this is currently cheap given the contract wins, imminent profitability and acquisition releasing synergies. Drop has been caused due to 2 sellers – a previous director who moved to start a new business and Imagination Tech who needed the cash and were a forced seller. Both have recently had an impact on the share price Hendersons have increased their position in the business and owns 6.02%. Miton have taken position in the business (6.11%) Shareholder register is out of date. There is a growing market for music streaming services . The potential has not yet been priced in. CEO estimates that within 3 years the market will $0.25bn. 7 Digital has just been featured on the hxxp://sharepicker.com website they will be inviting Simon Cole onto the podcast after the interim results are out (he cant appear at the moment as they are in a closed period) link here: hxxp://www.sharepickers.com/549-mercom-capital-kibo-mining/ …