7digital Share Discussion Threads

[yus777] 10/9/2021 10:15

1,500,000 buy at 088.45

[yus777] 10/9/2021 10:12

massive buys going in

[dickiebird2] 10/9/2021 09:38

Thank you !!

[wapper] 10/9/2021 09:22

Were towards end September last year.And hey released quite a few RNS's in the run up

[dickiebird2] 10/9/2021 09:08

When are the results ?

[wapper] 10/9/2021 08:49

Interesting day. Hope to see further strong buying ahead of results

[mikeyaddy] 13/8/2021 14:21

Sub 0.50 shortly ! Disaster for the company going bust soon at this rate

[babbler] 07/8/2021 19:42

Yeah because the contracts being worthless is why they will achieve profitability next report.

[solardave] 07/8/2021 11:20

Anyone here also invested in BBSN
Id be really interested in your comments/comparisons

[solardave] 07/8/2021 11:19

mdchand

How did you get hold of the Arden note?
When was the 3p price target published?

Many Thanks
Dave

[97peter] 06/8/2021 09:10

The questions and replies from 7DIG, investor relations:

On 5 Aug 2021, at 12:01, 7digital Investor Relations <[e-mail]> wrote:

?Dear Peter,

Thank you for your questions and your support as a 7digital shareholder. Please find the responses below to your questions.

Let me know if there is anything else I can help with.

Kind regards,
Joe

1. What is 7Dig 1/3/5 year strategy as I cannot find it anywhere on your website or Annual statements.

The Company has not published a 1/3/5 year breakdown, however 7digital’s strategy is to grow revenues, profitability and shareholder returns through:
• offering flexible, productised, end-to-end music solutions;
• increasing the number of clients it serves in strategic, well-funded market verticals, particularly the growth markets of home fitness, social media and artist monetisation;
• improving the financial quality of our business by driving recurring SaaS and PaaS revenues;
• expanding and leveraging its geographic coverage;
• continued investment in market-leading technology to meet shifting technology trends, user consumption and client needs;
• applying strict control of its cost base to ensure that revenue growth is quickly reflected in improved overall Group profitability; and
• establishing and maintaining a partner channel programme for scaling sales into the identified target market verticals.

2. Will there be some real financial statements of revenue and profit in September 2021?

Yes, the Company will be releasing its interim results for the six months ended 30 June 2021 in September 2021.

3. Why has 7Dig not been approached or takeover by the likes of Hipgnosis, Spotify or Triller? They could takeover for 3 times asset value?

It is Company policy not to comment or speculate on such matters.

4. Is cash flow an issue and if so will there be another round of consolidation and revenue grab?

Under the current management team, 7digital has focused on streamlining its operations to position it for sustainable growth and becoming cash flow positive. This has involved moving away from bespoke modular solutions to a highly productised, cloud-based technology offering. The Company has also brought down overheads, successfully reducing administration expenses by 43% last year. As a result of its focus on profitability, 7digital is on track to deliver a full year of positive EBITDA in 2021 for the first time in its history.

The Company ended 2020 with a strong cash position of £2.8m. It also has two highly supportive major shareholders which have confirmed their financial support to allow 7digital to manage its working capital and to support growth needs.

This was in response to my questions a week ago. Very positive and clarity!

Peter

[axonic] 31/7/2021 07:20

I'm feeling very positive after reading the latest newsletter

[benny shares] 27/7/2021 22:02

September cracker bomb, wait and see

[wapper] 27/7/2021 06:27

More contract wins . 7DIG will multi-bag from current levels . Just needs a bit more visibility on financial forecasts then rerating will come. For the record I'm fully invested here.GLAH

[mdchand] 23/7/2021 09:52

Recent Director buying was a bit toe in the water, rather than staking my mortgage, but perhaps there was an overhang which they've removed. Noted another 1m purchase today so perhaps more Director buying.

[on target] 22/7/2021 17:23

The bad news was the final results.

[parsons4] 22/7/2021 16:47

Also we must not forget that they raised money at 2.25p and haven't had any bad news since !!! This one is way off the radar imho

[parsons4] 22/7/2021 16:45

This is either a very overlooked share or a complete fraud !!! I agree with kcr69 they are signing contracts with some very big names. After the drop today I am tempted to buy more !!!

[mdchand] 19/7/2021 08:33

So - have read through the Arden note. Basically saying b/e this year before showing £3m EBITDA for 22. 40% growth. Target price 3p. Didn't really address the short term liquidity issue other than the existing shareholders remain very supportive and will fund any shortfall (hello equity raise or personal Director loans from Invesco).

[kcr69] 07/7/2021 09:08

While always good to see new contracts being signed, irrelevant of their ultimate scale and importance, what was of most interest to me in todays update was here we have another two commercial business, who will have done their own due diligence on 7 digital, and clearly don't expect to see them go bust in the next 24 months.

[gb904150] 02/7/2021 13:07

mdchand - your comments were fair and only highlighted what was in the RNS. It just seemed overly negative to focus solely on liabilities in 3 months time when it also stated the company has the written support of its two largest shareholders.

I don't think the RNS refers to a particular liability, only that they will need funding over the next 3 months. To which they state they have supportive shareholders.

You're right to be sceptical in that respect but it's not unusual for high growth tech companies to need funding to grow revenues enough to reach profitability.

At 7DIG they appear focused on that kind of 'prudent growth' now vs what you might call 'reckless growth' that failed previously.

There's arguments to watch and wait for the next placing but on a 5-year view I think it's a good one to hold as long as they look to be reaching their revenue targets due to those great GM's.

[mdchand] 02/7/2021 12:45

GB - I selected those comments as the market rightly focussed on them. That said, I felt the underlying fundamentals were also improving and used BOOM as an example of market disconnect to the underlying fundamentals. No one on here knows why they might have a short term liquidity issue but after the debacle of BIDs continually wiping out shareholders with deeply discounted fund raises, its far better to examine a worst case scenario to determine whether now is a good entry point.

I can't see the share price moving ahead in the ST with this uncertainty hanging over it, but the next interims - whenever they are - will potentially clarify and reduce that uncertainty. Its a calculated gamble right now, but it would be a more calculated investment after the next interim figures.

That said, if there was a discounted fund raise, I would definitely top up at that point. Hope that clarifies my position.

[gb904150] 01/7/2021 14:38

thanks kcr69 - nice to read your views and see we're on the same lines there.

I quite rate Paul Langworthy so far. 7DIG seem to be building a business in a more sustainable way than it was run previously. That's to say, keeping a lid on SGA costs while trying to increase top line growth as quickly as possible.

At the other end of the scale is Napster (NAPS) who appear to be where 7DIG were a couple of years ago. Splurging cash in desperate search of enough revenue to 'make it big'. Except that if they don't they run out of cash and have to rely on death spiral finance (CLN's) to keep things going. That's pretty much where they are now....and it's not been a good ride for shareholders.

You can only get away with those 'growth' promises on the NASDAQ it seems! Eye watering valuations for loss making companies over there.