7digital Share Discussion Threads

[macmuck] 13/12/2017 12:27

Thanks for the link hauso but go through the whole of AndrewScott TV and you wont find a CEO not as positive at their companies prospects...

[lagansider] 13/12/2017 10:39

Good spot hausofmaus, definitely worth watching...

[hausofmaus] 13/12/2017 10:11

The video linked from this tweet is well worth a watch...

[lagansider] 13/12/2017 07:18

Bloomer2,Chezt - worth noting too I think that MMS are supporting the Placing to the tune of just over £1M. via the purchase of over 25M shares.

[tiger60] 12/12/2017 15:07

Managed Funds are a lot lot lot safer but not as exciting!

[bloomer2] 12/12/2017 14:16

Simon Cole strikes me as a very good salesman. He clearly has the gift of the gab, but I'm not clear that he is CEO material and for me I'm very sceptical about anything he says. For example, his claim that the business would have been profitable in 2017 if it was not for MMS take over is clearly not true. I suspect that the end of year results may be a lot worse than we are expecting - we shall see.

[macmuck] 12/12/2017 13:37

Cheers Tiger. I'm a novice investor but have done well with funds and was going to put it back in that direction. I'll think about your advice now before deciding. Could have wiped out a deal of losses if I'd have taken the latest placing but I had no confidence in them!

[tiger60] 12/12/2017 12:59

Well with 116% increase in shares in issue cone the 19th and the pricing of the issue ( a major contributor as to why it was oversubscribed) i am sure some will vote with their feet. Edison predicted a 2m bridging facility but we went down the route of tapping investors. Would of preffered a bilateral revolving facility.

I understand and share the frustrations but i would suggest it is not the time to sell up. Personally believe following the 19th we will get news on new contracts and a move into profitabilty. Also note the share price peaks near end of january the last two years so maybe a good time if you are committed to sell.

It may be rocky over the next few weeks but the potential returns upon any sign of profitability, which the mgmt strongly expect, would see multiples of the current share price even with 400 odd million shares in issue. Hold and apply for your excess!

[chezt] 12/12/2017 11:10

You could read it like that, but as the sentence is phrased in the past tense i.e. became the largest customer, it should say "was" and not "is expected".

[bloomer2] 12/12/2017 10:44

I thought the wording of the RNS regarding the capital raising was worthy of a mention:-

Following the acquisition of 24-7 Entertainment from MediaMarktSaturn (the "Acquisition"), announced on 20 June 2017, MMS became one of the Company's largest customers and was expected to add approximately £8 million of revenue in the financial year ending 31 December 2018, including approximately £6 million of annual revenue.

It suggests that they are no longer expecting MMS revenues in 2018 to be £8m. Possibly I'm reading too much into it - we shall see!

[lagansider] 10/12/2017 19:27

I agree MM, I think 7DIG is now in an excellent position. Their Advisers certainly didn't seem to have a shortage of Institutions either existing or new wanting to buy shares and support the Placing. I don't believe they are in for just a quick flip, instead that they think there is real potential for 7DIG. I was initially a bit frustrated by the size of the dilution, but it does ensure that 7DIG is financially sound when undertaking contract discussions with potential new clients. It could indeed get exciting if 7DIG can fully exploit it's position in a hugely developing streaming market.

[michaelmouse] 08/12/2017 18:49

You can see why the recent fund raise was hugely over subscribed. At the moment, 7digital is a tiddler, but it's chosen market has high barriers to entry and they are pretty much last man standing in Europe. Their biggest uncertainty has always been their finances, but with a very large fund raise now pretty much complete and cashflow positive and profitability within sight, it could get exciting. I hope so anyway!!

[michaelmouse] 08/12/2017 18:41

Interesting re: YouTube. Here's a link:-



"Additionally, the March date leaves very small turnaround time for licensing deals with labels in order for the service to promote any sort of catalogue. While Billboard notes that they already have Warner Music Group on board, giants like Sony Music and Universal Music Group are still in the negotiation phase. However, even if these three massive labels agreed to YouTube’s terms, there is still no news on whether indie labels — who greatly rely on streaming for the promotion of their notably smaller artists — are even in the running for consideration on Remix."



"YouTube must overcome several hurdles to meet a March target. Not only has YouTube been trying to negotiate new deals with Universal and Sony for more than a year, but it also has a talks with Vevo looming early next year. Vevo, owned by Universal and Sony, distributes music videos for their acts."

It's worth reading the full articles for context, but I've reproduced a paragraph from each because they illustrate why 7digital is in such a strong position where barriers to entry in their market are very high.

If youtube are struggling to agree licensing deals with the major record labels then imagine how others struggle.

7digital already have the licensing deals in place with all the major labels and most of the indie labels. By using 7digital to provide the service it cuts out the hassle of negotiating separate deals.

In fact, YouTube might be better off just using 7digital imo. Certainly a large number of customers must be considering doing just that to enter the rapidly expanding streaming market place.

[tiger60] 08/12/2017 17:29

YouTube re entering the paid for musical streaming market again in 2018

Spotify and tencent link up announced as well

[hausofmaus] 07/12/2017 12:59

Some news of 7DIG customers via YOLO RNS)

YOLO is pleased to announce that its investee company, Magic Media Works Ltd ('Magic'), has received commitments of £1.46 million from existing and new investors towards an intended £2 million new round of financing.

In addition, Henrik Holmark, previously the CFO of Pandora Jewellery, has invested £650,000 in this fund raise and will join the Magic board as a non-executive director.

The fund raise follows the launch of ROXI, the new 5-in-1 music entertainment device, which brings Unlimited Music, Karaoke, Music Games and other family friendly features to consumers in the UK and USA. Funds will be used to continue the development and rollout of ROXI and related products and services in 2018.

Also... social media detective work identifies - @fanlabelapp as a likely new customer, along with @weyv_app - - as highlighted a week or so back.

[michaelmouse] 06/12/2017 16:15

If you look at twitter you'll see that even the creative department at 7digital are collaborating on projects with the major record labels. Excellent working relationships clearly established over many years. Tweet relates to work with Warner Music Group.

[michaelmouse] 06/12/2017 15:55

"I note that the pump is in full swing to allow all those hoovering up new placing shares out straight away with a nice little lift."

On a positive note you can actually string a reasonably coherent sentence together. Sadly it just illustrates what a clueless pillock you are.

How exactly are 16 new investors with an average of around £400,000 each invested going to sell them when a £10,000 sale would probably trash the share price? That doesn't even include existing investors or Directors. Look at today's volumes, even tiny volumes shift the share price up and down.

As for pumping the share price I'm pretty much the only one that's made any comment today, and I'm here for the very long term.

The institutions are here because they're hoping it multi-bags into a many hundreds of millions of pounds company which will improve liquidity that they can eventually buy and sell into. They are more likely to be buyers than sellers.

The share price may fluctuate and consolidate for a while on slim volumes but then if things remain on track it's off to the races.

Some short term traders might make a very small amount of money on a quick turn, but that'll be it.

Anybody trying to pick up any volume will send the share price into orbit.

[bloomer2] 06/12/2017 15:10

Matt Honey is taking up £10K of shares. Seems a small amount for a director. His overall holding is very modest. If anyone knows about the potential of the business, it should be him!

[barnetpeter] 06/12/2017 14:33

Yes...handy to be able to sell some at 5.5p when the placing was at 4p. Closed my spreadbet too. Think this is as high as it gets ....for a while.

[monte1] 06/12/2017 13:11

I note that the pump is in full swing to allow all those hoovering up new placing shares out straight away with a nice little lift.

[dickiebird2] 06/12/2017 12:42

What happened to Pet Lover ??

[michaelmouse] 06/12/2017 10:59

Up 10% on s*d all volume as far as I can see. Institutions will see value in this company at multiples of the current share price if 7dig land contracts and hit profitability. DYOR. Aimho.

Thread's gone very quiet. ;)

[michaelmouse] 06/12/2017 10:25

The placing was interesting because it was oversubscribed and brought in 16 new institutional investors. Existing investors were also involved including the Directors.

They raised £6.5m. If you divide that figure by 16 then each new investor gets £400,000 worth, however include the existing investors and new investors and they get far less than £400,000 each (on average). Clearly they like the story and hence I'd anticipate some won't have received as many shares as they'd have liked, and will be prepared to pick up more in the open market at what I'd still consider an extremely cheap share price.

The evidence points to considerably more demand to come from here.

[lord gnome] 06/12/2017 10:01

Plenty of stock available now at 5.69.