7digital Share Discussion Threads

[smithie6] 28/12/2016 10:39

Short tweet sent out showing 71% increase in payables during 6 months of H1....to imo worrying levels..(cause 7DIG hasnt got the cash to pay their payables (touching 7M pnds !! 70% of turnover in 1 year !!) ...
and mentioning that 1/2M negative current assets

not pretty imo for a loss making company...where most of its clients seem to be producing falling turnover (see Snowite accounts) or are start ups (EJukebox, Musical.ly, Guvera....) with no turnover and with Guvera not paying its debts to 7DIG


imo this desperately needs a cash injection...and I dont think it can borrow any more money....so I think it has to be new shares...if so, then at what price can it get a placing away ?

@fulltimeinvest

[smithie6] 28/12/2016 10:38

Petlover 1148
I disagree with the pts you raise, many of my reasons I have posted before.
Are you a big shareholder in 7DIG....desperate to
- stop the share price falling down thru 6p support ?
- hold up the share price as much as possible to help get away a cash raising for the co.
- phps you are B.Drury....with 9-10M shares that you need to drum up buyers so you can sell some more...you sold 2.75M shares in months before you left...price is now lower....so you were right !

[smithie6] 28/12/2016 10:32

.".embedding the music"
So it will have mega GB memory ?

....(personally Im not sure cos. like 7DIG will have a large part to play...music owned by Z on device created by X.....they have got rid of the streaming co.....do they really need 7DIG ?...whose part would seem to be to just keep a record of which tracks are listened to by the user in order to calculate how much money to pay to the music rights owner. Is that function big enough to pay for a listed company (7DIG) ?

(Will device owner just do it themselves in the future ?)

[pet lover] 27/12/2016 15:23

Cary Audio has partnered up with MQA. Our DMS-500 network audio player is the first Cary Audio product in the range to be MQA certified. What makes this partnership especially exciting is that the Cary Audio DMS-500 is MQA’s first partner product to use MQA 16x rendering. This means all MQA files are decoded within the DMS-500 to an astonishing 705.6 kHz (44.1 X 16) or 768 kHz (48 x 16). With the DMS-500 and MQA’s 16x rendering, MQA files will take you back to the original master recording and capture the missing timing detail. The result is amazing. Every nuance and subtlety of the artist’s performance, every tiny drop of emotion is authentically reproduced. When you listen, you’ll be transported right into the very moment of creation.


MQA is the only platform artists will want to produce on. They don't want second best.
Cary Audio is embedding the music so when you buy the product is ready to listen to straight away.

It's the new standard.

[pet lover] 27/12/2016 11:49

Or one could look to the future.

Company have said investment phase is over.
Broker says profit due in 2017.
Streaming revenues roaring ahead.
MQA new digital format that 7 dig are licensing.
Now working for two of the big three record labels
Director buying.
Hiring new staff
Expanding market
Rights to Worldwide RADIOPLAYER.
Cash of over one million at June 16.
Very low market cap £7M
Milton fund buying
Powering Musical.ly. 160 million users worldwide.
Massive cost savings, one million a year.
Half of revenues are recurring and growing.
Margins on new licensing deals running near 90%
Very little competition with just 2 or 3 worldwide.

[smithie6] 27/12/2016 11:34

Petlover
"For years, 7digital has been dedicated to transforming the listening experience for music on connected devices. We are proud to be MQA's leading platform provider,"

Spotify turnover around 2000 M€
7Digital turnover around 10M pnds...flat for 3 yrs in a row


7Digital ...transforming the listening experience...acquisition Snowite in 2015 its turnover fell
Guvera...a startup....not paying its bills...800k written off
Electric Jukebox....another start up


I hope for holders and workers that 7DIG but hldrs should not ignore imho
- 3 yrs of flat turnover
- 3 yrs of on going consumption of cash
- that imho its got no cash left !

[smithie6] 27/12/2016 11:29

"but not directly applicable to real life because no real-world signals are bandlimited. "

Disagree on that point.

ALL telecommunications is band limited imho.
Why ?
Because transmission uses up part of the finite total amount of communications capacity available. So a lot of investment is made to bandlimited and cut the amount of communications being used....so that more users can use the communications capacity...and hence greater income ...

On a satellite link for example....it will often be voice/sound activated....if only 1 person is talking then the comms link in return dirn. will be cut off and given/sold/used by someone else !...and when/if you start talking it will then again connect you to a working link....quite clever really but simple...

All the coding stuff like MP3 etc is also to reduce the % of the comms system that it used.

imho the higher data rate needed for high resolution will heighten the avoidance of it for use by people using their monthly data limit on their mobile device.

----

And due to this data link stuff.....the only companies that will get real useage will be those offerred by the system operators such as Vodafone...who use Spotify...(since they exclude (or did) their music offerring from calc. of data used (in my opinion illegal under European competition law but there we go)

[rapier686] 24/12/2016 20:25

Allow me to disagree Smithie:

Human hearing capability is 20Hz to 20kHz (reducing with age)

An accepted summary of sine wave audibility.
Human hearing is non-linear though, so the audibility of isolated sinewaves says nothing about whether higher frequencies do or don't affect our perception of what we hear. They do.

Physics defines that it can be "perfectly" reproduced by sampling digitally at double, ie 40kHz

No doubt you're referring to "Nyquist's theorem", which that states that a bandlimited signal can be so reproduced (and tells you how to do it). A very useful result, but not directly applicable to real life because no real-world signals are bandlimited. Which is the whole point in the first paragraph.

With high res. I assume it prohibits use by the masses for mobile use due to its higher consumption of data

And that's where MQA comes in. Streaming MP3s is rather lower datarate, but HiRes at around CD datarates is broadly what MQA offers.

[pet lover] 24/12/2016 13:52

The teams at MQA and 7digital envisaged and implemented a process for bringing MQA's quality sound into digital music services globally. For years, 7digital has been dedicated to transforming the listening experience for music on connected devices. We are proud to be MQA's leading platform provider, allowing our partners to integrate MQA technology into their service effortlessly.


THE TEAMS AT MQA AND 7DIGITAL EVISAGED AND IMPLEMENTED A PROCESS FOR BRINGING MQA's QUALITY SOUND INTO DIGITAL MUSIC SERVICES GLOBALLY.

[pet lover] 24/12/2016 13:37

Don't forget next month we will told the big three record labels have signed up to MQA.

Reading between the lines.

Warner Music has been onboard since last summer with the other two working on the case.

[pet lover] 24/12/2016 13:33

London, UK and Las Vegas, US, January 7 2016 – 7digital, leading B2B digital music and radio services company, announces their first content available in MQA, a new revolutionary end-to-end technology that delivers master quality audio in a file that’s small enough to stream or download.

Following the announcement of their global strategic partnership as the leading platform provider of MQA, from January 11, 7digital will for the first time have indie label content available in this higher quality format on their platform for B2B clients. This content will also be available for download by customers of both the 7digital D2C web store and mobile apps, with the company becoming the first digital music platform provider to offer MQA for both download and streaming.

In addition, Onkyo – one of the world’s foremost creators of innovative home entertainment products – is working with 7digital to include the new MQA technology into its high resolution audio store, onkyomusic. From January 8, users will be able to access indie label MQA content in onkyomusic, a store powered by 7digital (branded e-onkyo music in Japan). Onkyo, and its subsidiary Pioneer, are also launching digital audio players with MQA playback capability.

[smithie6] 24/12/2016 13:12

Hi-Res
Who cares !
Just a digital file. 7DIG has no patent on hi-res. The transmitting end can easily limit or control the resolution that is transmitted or allow users to select. Big deal. Other music streamers can do exactly the same. In complexity it is zero, zilch, nada.

(science. If interested.
Human hearing capability is 20Hz to 20kHz (reducing with age. Physics defines that it can be "perfectly" reproduced by sampling digitally at double, ie 40kHz.
With high res. I assume it prohibits use by the masses for mobile use due to its higher consumption of data, which costs users money & which the masses dont like spending).

[hausofmaus] 22/12/2016 20:33

No "buy now" from me I'm afraid, very happy with my position here, up to others what they do :) Not going to debate this any more.

Instead, here's a nice piece from UMG's CTO, which gives more info on hi-res event at CES...

[smithie6] 22/12/2016 19:55

Hausof
Can you do a "buy now" analysis ?

I cant see any argument.

(& if it achieves break even at some time in 2017.(unlikely imo since needs at least +5M turnover & no resulting increase in op. costs !, impossible. 2018 or 2019 phps but need 6-8M more to cover losses till then)...then so what...it has to pay down debt & reduce the massive payables bill & shore up accnts...no chance of any divi till yrs in future, if ever..

IMG Pure (hosted by 7DIG) was a non-event, Guvera failed to pay its bills...one assumes that more clients of 7DIG will copy in future

[smithie6] 22/12/2016 19:50

Excluding all the bits like deprecn , amortis, lay off costs. Etc

Sounds possible.

But overall a big miss for the year and a big miss on original jan 2016 target of being profitable on monthly basis for month of Dec 2016.....and imho big money problems.

[pet lover] 22/12/2016 19:03

Smithie6

I ask again.

OK Let's look at those numbers of yours.

If I understand it correctly your predicting a second half loss of £800,000 to £1.3M ?

[smithie6] 22/12/2016 18:14

Hausof

Btw
3 yrs in a row with flat turnover

2014
2015
2016.

imho as soon as MD asks for more cash (ie. now ! Or before annual accounts are signed/issued) then imho he is gone.
Phps that it why it is taking so long....& I guess he might be hoping for sudden jump in turnover to save his posn & MD salary & benefits.

[smithie6] 22/12/2016 18:09

..'if' it does another placing to survive the the big sh. hldrs wont be pappy...

6M raised at 27p/share....
And the cash from selling Audioboom shares

All smoked
& co. now has
- bank debt
- negative current assets
- a massive payables bill ( that it cant pay)

& still loss making !!

Who is going to put up the cash ? (3.5M) What price ?
The 27p investors are probably not happy and cld well decline. Others ?

---

Ah....at present the co. imho cannot issue shares since minimum legal price is nominal share value...ie. 10p. Ok, not a big deal it can create deferred shares and re-price but needs court approval.

:-0

[pet lover] 22/12/2016 18:02

SMITHIE6

OK Let's look at those numbers of yours.

If I understand it correctly your predicting a second half loss of £800,000 to £1.3M ?

[smithie6] 22/12/2016 17:55

Petlover
2.5-3M underlying loss in 2016 imho.

So, imho there is no margin !, it's loss making.
Each to own view.

[smithie6] 22/12/2016 17:52

1.7M cash loss in H1 (excluding the 800k Guvera effect)

If trim a bit then phps 2.5-3M loss for the year.

imho the co. does not have the cash to support H2 losses and imo needs a cash raise to stay in business.

For 2017 it wld need 5M more turnover to generate that gross profit if 3M just to break even, or sack a lot of staff. With flat H1 growth when need 50% in 2017 to breakeven...I cant see it happening in 2017. In 2017 it also has to repay 200k€ from Snowite acquisition.
But each to own view.

[pet lover] 22/12/2016 17:44

Smithie 6

The broker has turnover growing at about 13% I think in 2016. That's not spectacular but it's the change in gross margins on ALL turnover that matters.

Go and look at the margin growth over the last two years.

That trend is going Up./ and UP /

[hausofmaus] 22/12/2016 17:37

Smithie6 - thank you. Hard to argue that the past has been poor. My analysis is that company is well placed to go forward now, with recurring revenue growing.

Trading update in Jan will let us know for sure, but I think there is now revenue coming from many sources (musical.ly, Playster, CStream, etc.) plus work they have with the labels. And there will be other customers coming next year.

For me, it is all about the future here now...