7digital Share Discussion Threads

[tiger60] 25/9/2018 09:19

The response to the contract win was muted as usual and unsurprisingly when the details are so vague.

Cant go to the AGM but would like to know:

Why aren't the latest share options performance based?

Did Mr Honey go through the due diligence employment process when re hired. I know he is friends with SC - when he rejoined was it based on friendship?

The contract news never has any detail and as a consequence the share price doesn't react. The standard is to say it is confidential but numerous other firms 'shout out' the impact on their figures. Can we get more info?

They say they are committed to creating shareholder value in the latest accounts. Can they point out when this has been achieved in the last 4 years?

The biggest thing is the market doesn't believe in the company based on its history of under delivering and over promising. Can change occur with the same personel? They need a new approach to investor relations small and large and to demonstrate they are moving forward. Everyone knows that the streaming market and opportunities are immense but can 7dig take advantage? So far we are always lured in by the great pipeline but converting these opportunities seems to slip each time.


As to holding shares only when you are 'super bullish' most investors are when they buy but are left less so when they have had diminishing returns as time goes by. There are many a holder waiting for an opportunity to get back to their starting point. That said I am bullish about the industry, the PaaS model and the wide ranging scale of the opportunities and market. But it is the conversion rate and the rhetoric that does not stand up to retrospective review that sticks in my throat. I truly believe this company could be massive but maybe only with a shake up of management. That said the accounts fiasco maybe the kick up the butt they needed. It is the sales team that will make or break this at present. Still dreaming of Walmart

[bckttsim] 24/9/2018 09:07

Big news today London-listed music technology firm 7digital will today reveal a partnership with Universal Music Group, the record label behind artists such as Taylor Swift, Elton John and Lady Gaga, to create new bespoke music streaming services attributed to individual artists.

[tiger60] 24/9/2018 08:53

Quite ironic with the heading in CityAM stating 'London firm to set up Spotify rival' when Simon Cole has spent the last few years saying Spotify and Apple are not our competitors. But thats down to the paper.

On the surface looks actually quite a large deal. Hopefully hear about the transition to one platform in October and gain those 1.5m cost savings. With margins so high its potential may be getting closer to being recognised

[kamitora] 24/9/2018 08:34

It seems like Selftrade, Barclays and IG can't quote against most stocks this morning, so it will be interesting to see the reaction once the market actually opens.

[russ505] 24/9/2018 08:24

London firm to launch Spotify rival with Universal Music Group

[michaelmouse] 24/9/2018 07:20

"Announcement of Universal Music Group contract wins
7digital Group plc (AIM: 7DIG), the global leader in B2B digital music solutions, is pleased to announce it has entered into agreements with Universal Music Group ("UMG") to provide partner services across three of UMG's separate digital music products. The global agreements each cover a multi-year term and will contribute to 7digital revenues in 2018 and beyond."

Simon Cole, CEO of 7digital, commented:
"We are delighted to be announcing agreements with the world leader in music-based entertainment, Universal Music Group, since each contract focuses on UMG initiatives that enable deeper engagement between artists and their fans, and leverage a range of revenue streams within digital music."

Excellent news. AGM on Friday. Hopefully the trading update will give details of further contract wins and confirm all is on track.

[tiger60] 24/9/2018 07:16

Good news but the details are so vague. Again it is impossible to gauge the impact but timing before AGM not a surprise. Still good win.

[soothsayer345678] 18/9/2018 16:13

Am I the only one here asking the question "What about musical.ly?" Please forgive me if I am not...the entire thread is a bit TL/DR. Musical.ly have been swallowed up by a bigger fish (TikTok) and so have we been told about whether or not the musical.ly & 7Digital contract still exists? I still see lots of outdated, inactive, finished clients and defunct projects on 7D's 'client stories' webpage but nothing actually compelling. Technics Tracks closed, Musical.ly is uncomfirmed, Panasonic, McDonalds are finished projects, Will.I.am watch is a non-starter, OpenLIVE pivoted and shut their retail music store down 2yrs ago. Onkyomusic is still going, but Hi-Res only = very niche. BBC contract is still on, AFAIK. But where is the the profit going to come from? This triller contract better be good, otherwise ...

[michaelmouse] 18/9/2018 16:08

chrisdgb - Yes very positive. Meanwhile some additional reading:-

[monte1] 18/9/2018 15:28

#3762

No.

I hope this helps.


vbrs

[tiger60] 18/9/2018 14:47

The chart might give you a clue...but us holders continue to hope

[chrisdgb] 18/9/2018 10:42

Not a holder here but read some pretty positive broker research in recent weeks, anyone else convinced of good things ahead..??

[lagansider] 16/9/2018 21:17

Unlikely that I'll be making the AGM unfortunately as I'd really hoped to go. While I'd be hopeful of a positive update/contract announcement, I would definitely have been keen to question the BoD regarding the recent Options award. I likewise find the lack of any performance criteria very frustrating, particularly soon after the suspension period.

[michaelmouse] 16/9/2018 15:04

Incidentally, I spoke to Simon Cole prior to the lifting of the suspension. He also appeared super bullish, but then I suppose I'd be worried if he wasn't.

[michaelmouse] 16/9/2018 14:25

Why would I hold shares in a company if I wasn't super bullish?

[tiger60] 16/9/2018 13:25

I know their reporting history very well and conversed with SC regarding contracts. In the last 4 years you would be hard pushed to find more than a handful of PIs in the blue thats why i am dead against the options both in relation to timing and exercise conditions

Revenue of gbp 20m are down on figures provided to Edison (24m) in feb but like i have said before revenue is vanity profit sanity. There is no point celebrating increased revenue if there is no profit at the end of it, especially revenue that is not organic.

I know you are super bullish and we all hope for that one big contract that has been hinted at for so long. Remember Walmart was mentioned in 2016 lets hope one day soon they convert otherwise we continue to sit near lows

[michaelmouse] 16/9/2018 09:38

If you look at 7digital's history of reporting the value of contracts then you'll notice that it's regular and informative. The AGM is on the 28th September (less than two weeks away) and they will no doubt release an update on trading. They tend to bundle the contracts together and then state the lifetime value of the contracts won together with the licensing revenues e.g.



As a long term holder with a view to holding indefinitely (assuming all progresses largely to plan), I'm happy with this. Given that revenues for the full year should be around £20m+ then an individual contract would need to be £1m+ to merit an RNS separately.

2 minutes of research would reveal 7digital's reporting history anyway? The share price will ultimately take care of itself based on profitability, cashflow, balance sheet etc.

The thing is with the minnows (like 7digital) is that they can double their share value (or halve for that matter) in a couple of hours or less on any major news story good or bad. That's why I take a position and try to imagine how they might be fairing in 2/3/5/10 years time.

If 7digital succeeds then the share price over the next few years will be many times greater than it is today.

[tiger60] 16/9/2018 08:38

And that is thing nobody knows so the market reaction is zero.

[tiger60] 15/9/2018 12:42

What is the financial gain for 7dig of the Mercedes contract with Soundhound?

[michaelmouse] 15/9/2018 11:52

The more traction SoundHound gets the more important 7digital become as a partner.

[michaelmouse] 15/9/2018 11:51

A little bit more about the Mercedes Infotainment system in the USA. It's also worth having a browse around SoundHound's (7digital's partners) website to gain an understanding of the traction they're getting in the AI space.

[tiger60] 15/9/2018 11:37

That will be a no then. I dont know the details of the commercial agreement with Soundhound but the market reaction was zero. I have been here for a while based on the potential or as SC would say the 'vertical sales opportunities' but after four years of misery for PIs and a bull run looking likely to come to an end they fail time and time again to build shareholder value.

This year - how many new contracts? Just cant get traction based on soundbites. Still ask the question why arent the share options performance based??

[tiger60] 14/9/2018 19:36

But what is the bottom line for 7dig? What impact on revenue, or more importantantly PnL?

[michaelmouse] 14/9/2018 19:14

More exciting news from 7digital's AI partners Houndify/SoundHound. See Pete Downtown on twitter.