7digital Share Discussion Threads

[smithie6] 19/9/2016 10:44

Quick review...

My view is unchanged....negative.

a) bod not to be trusted imho......RNSs are too rubbery wrt truth

b) Guvera
As I thought , but no one listened, Guvera deal signing was a non event......Guvera promise to pay was falsely presented via RNSs ( 'we will get paid' (from start up company with money problems. Yeah right)....to "we wont get paid" just weeks later..

c) 2M negative movement in current assets.....!!!!...(update. But some is phps from one offa if Guvera debt is written off in caah flow calcs.)
To be 1/2M negative....!!!
BIG RISK imho

d) payables is far too HIGH wrt other numbers and TNAV. imho

e) growth in turnover.
..no way near enough to get co. to break even never mind profitable.

f) needs a cash raise fast imho...surprised it hasnt done it already
..and any new cash raise would be at much lower price than main floatation/merger cash raise price.....(was it 27p ??) so initial backers will not be happy, they like the price of any new cash raise to be higher, not lower, so ...would they back a new cash raise ?!!, if not then are there new big funders out there and if so, would they demand their pound of flesh ? ..such as a price well below mkt price ??

various uncertainties imho

G) chart. Terrible.

h) my opinion on receivables versus payables......based on likely underlying reality....( that high % of payables are payable now while a good % of receivables are arguably receivable in the future...imho... and recalling that 1 big lump of receivables was written off, so what % of receivables is of doubtful payment ?? ) and with negative current assets and loss making situation....is disastrous...imho

imho a bargepole job

Fulltimeinvestors.com

[loobrush] 19/9/2016 09:14

Patience is necessary here that's for sure. I'm waiting for end of year results as that will show a different picture.

[orange1] 19/9/2016 08:19

Loobrush denies shower claim.

[loobrush] 19/9/2016 08:13

Results are ok and will be in profit by year end.In my view they are building up momentum very nicely.

[monte1] 19/9/2016 07:58

What a shower.

[masurenguy] 19/9/2016 07:10

RNS Number : 1364K
7digital Group PLC
19 September 2016

Half year results for the period ended 30 June 2016

7digital Group plc (AIM: 7DIG), the digital music and radio services company, today announces its results for the half year ended 30 June 2016.

Highlights

· Improving sales momentum: Q2 materially stronger than Q1

- annualised exit monthly recurring revenue ("MRR") for the period increased by 10%

- high-margin licensing revenues in June rose by 17% compared with 2015

· Shift of client base continues to major, tier one corporates, increasing the scale of our customers and improving the quality of our business

· Contracts signed during the first half with a cumulative lifetime deal value of £4.7m, compared to £4.2m for the whole of 2015

· Major new customer launches this period including Musical.ly in 30 territories. 600m music streams delivered to more than 15m people to date in 2016, compared to 72.6m streams to approximately 3m people for the whole of 2015

· Acquisition of Snowite, the leading French digital streaming music provider completed in this period. Integration of technology platform is on track with greater than anticipated overhead savings. Major new French client launch of Cdiscount streamed music service next week.

· Management team materially strengthened by new Chief Financial Officer, Chief Technology Officer and Chief Commercial Officer; benefits already being realised

· Strong focus on cost base, with approximately £1m of annualised savings anticipated by the year end (including £0.5m overhead synergies from the Snowite acquisition); of this amount a £0.3m saving will benefit the second half of 2016

· Half year revenues of £5.2m (H1 2015: £5.1m); adjusted LBITDA of £2.8m (H1 2015: £1.3m), after £0.7m provision for bad debt at customer Guvera, costs relating to the move to a cloud based IT systems and reflecting the timing of R & D tax credit; the statutory loss for the period was £3.2m (H1 2015: statutory loss of £6.6m)

· Cash at period end of £1.1m

Simon Cole, Chief Executive of 7digital, said: "We have continued to improve the quality of our revenue base, remain confident of our commitment to achieve profitability by the year-end and expect the Group to be profitable for the full year 2017. It is disappointing that, despite this accelerating progress, the provision for revenues owed to us by Guvera and slower revenue growth than expected in the first half overall will result in a larger loss this year than we had anticipated. We continue to expect to be broadly EBITDA breakeven in the final quarter of the year. Our Snowite acquisition was completed in this period and has brought greater than the anticipated cost savings, which will reflect in a £1m reduction in anticipated overhead for next year. It has also brought new revenues and clients; next week we will launch a major new streamed music service in France for Cdiscount, adding to existing retail clients Fnac and E.Leclerc. The sales pipeline is strong for the second half of the year with a number of significant contracts in the final stages of negotiation".

[iamnoone] 18/9/2016 20:40

michaelmouse - This all depends on whether that growth also comes from taking away subscriptions from the likes of Apple Music, Deezer and anyone of those 7Digital partners. Key to ensuring growth for 7Digital is ensuring that 7Digital partners are able to successfully market and retain customers by providing quality service and improved user experience.

[michaelmouse] 15/9/2016 07:38

"STOCKHOLM—Swedish music-streaming service Spotify AB on Wednesday said it had reached 40 million paying subscribers, up a third from six months ago."

This is encouraging news for 7Digital. Growth in streaming equates to more potential clients since 7Digital is a B2B provider for streamed services.

[michaelmouse] 05/9/2016 16:12

musical.ly one of 7dig's fairly recent contract wins appears to be going great guns ;)

[michaelmouse] 02/9/2016 14:01

This is good news for 7Dig :-



"MUSIC streaming service Guvera has been having a wild ride, but one thing the Gold Coast firm is driving home to investors this week is that it’s paid its bills. It’s a good business practice, you know – companies paying their bills. “Once again there has been press reporting around (debt restructuring) payments etc, but our board has met the $1 million payment to (administrators) Deloitte as planned,” Guvera acting chief Claes Loberg said in an investor note.

Guvera had struggled, with its prospectus detailing delays at the end of 2015 in paying out their tax and superannuation liabilities. Two subsidiaries went into voluntary administration, and are now getting out of it, thanks to a debt restructure deal that saw some creditors take a substantial haircut."

Guvera clearly honouring their debt repayments which means 7Dig should get their money:-



"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 £77,000 has already been made, with the Company expecting the balance of £818,000 to be repaid over 8 months under the revised repayment plan, pursuant to the restructure."

[sweenoid] 01/9/2016 13:52

That relationship with play store was a really big win for 7
I still maintain its mightily undervalued, we shall see

S

[loobrush] 01/9/2016 12:49

Looking better-will be a lot better when investors realise that 7DIG could turn out as market leader and making money.

[trotterstrading] 20/8/2016 08:33

Strong results to come in Sept, holding firm for that one!

[hope67] 16/8/2016 15:14

bdroop

Personally I see it as a positive step that Gurvera have already negotiated the payment plan with 7dig. This shows that the two parties had a strong customer relationship. 7dig is also focusing on higher margin work with upfront fees and in increasing their monthly recurring revenues. So they are making steps in the right directions also 7dig have a healthy pipeline of work coming from existing customers and new contract wins, so hopefully the increase in revenue and resulting cash inflow from that will compensate for Guvera in any case.

[bdroop] 16/8/2016 14:54

Sure. If they continue in business that is. I hope they do for the investors here.
I just think it's a really big IF at this juncture.

[trotterstrading] 16/8/2016 12:18

Agreed. But given the below comment I believe we will get most, if not all the 800k back (in any case it's not huge amount)"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".

[bdroop] 16/8/2016 06:47

The bear argument here would be Guvera debt and their ability to continue paying...

[trotterstrading] 16/8/2016 06:21

Monte obviously you take the house broker target with a pinch of salt, but it's even more obvious that if 7DIG reach profitability by the end of the year (as per the Trading Update RNS) the share price will be much higher than current levels. Personally I think a 20p share price is easily achievable in the near term.

[trotterstrading] 15/8/2016 23:08

I'm expecting a stellar update in Sept!?

[monte1] 15/8/2016 20:14

Would that be finn cap the house broker?

[someuwin] 15/8/2016 20:12

I see finncap put out a note today reiterating their 38p target here.

7digital Group Plc 7DIG finnCap Corporate Price 7.38 Target 38.00