7digital Share Discussion Threads

[pet lover] 19/12/2016 13:02

2hrs ago.

We're hiring! Check out hxxp://about.7digital.com/careers for roles in Legal & Business Affairs, Client Operations, Dev and Product teams #Techjobs

[smithie6] 18/12/2016 21:55

21/1/2016

RNS "...continued growth"
But later in 2016 the H1 results show a FALL in turnover after you remove French turnover from acquisition to get like-like perf.

So, the co. forecast growth in 2016 and produced a DECLINE.

[smithie6] 18/12/2016 21:26

Petlover

S.Cole MD. Sept
...."is sharp growth indeed"

Whereas the truth indicates this is false

H1 turnover about the same as H1.
& H includes .26M £ of turnover from an acquisition (2.5 months. 12 months= 1.5M€. Exchange 1.2:1)

So turnover in 2016 was LOWER than 2015.

While the MD says "sharp growth"

From my data ( from accounts) it appears the MD is a liar.

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If a co. needs to , or might need to, raise new money & it can ONLY do it by managing to get ppl to buy new shares....it has no choice but to try make sure it is creating an image that helps achieve that need. In part since there is an obligation of the dirs. to the workers, otherwise they cant pay them their wages and their mortgages or rental costs.

[pet lover] 18/12/2016 19:11

Mr Cole 23 September 2016


“This company is on the brink of profitability: we are no longer burning through cash, and the inflection point for this business is just around the corner, thanks to the size and scale of the kind of customers we’re dealing with.”

7digital’s other important numbers concern the streams and listeners across its network of clients. In the whole of 2015, it delivered 72.6m streams to three million listeners, meaning that the 600m streams to 15 million-plus listeners in the first half of 2016 is sharp growth, to say the least.



“It’s a tiny spot in the wider world of people listening to music. Radio content produced by the 7digital Creative team reaches over 10 million people every week in the UK alone,” he said. “But with two more larger scale customers, that 15 million will become 27 million, and that’s where we want to go: 10bn streams a year to 30 million people from 70 customers.”

[smithie6] 18/12/2016 19:09

Musical.ly

What is it about ??
Looks like personal videos where people (kids/youngsters) dance or lark about to music....but I cant see any button or option to buy the music being played...
..after a quick look I cant see how musical.ly gets income....or 7DIG...
..it looks like a free service....& since Youtube is free then musical.ly cant charge for posting videos...

(Worth recalling Twitter history....popular but not been able to turn that in to income)

[pet lover] 18/12/2016 18:59

Loobrush:

Smithie6 has an agenda.

He might be spot on shares don't always do what you think they might. The downside is a wipe out but the upside is unlimited.7dig have 150 staff and are hiring more.They are winning new contracts.

[smithie6] 18/12/2016 18:39

Petlover

You ramp the cDiscount connection as it going to move 7DIG fortunes

I give some facts to counter your view

7DIG bought Snowite
Snowite already worked for leading french names including FNAC, Leclerc, Vivendi
and the Snowite turnover fell between 2014 and 2015 from 1.7ME to 1.5ME.

Of these, imo, FNAC and Vivendi are much bigger names for music than cDiscount
so imho it is 99% g'teed that the cDiscount connection for 7Digital will have no material impact on 7Digital AT ALL and is just yet another ramp from 7DIG directors, partly since it is loss making and needs to keep raising cash.

[loobrush] 18/12/2016 18:33

Good work Pet lover, keep it up -I agree with all your views-if all goes as they plan 7DIG could be a big winner, but like all stocks there is a risk that things don't turn out as hoped. However thats the same with all stocks even blue chips. keep digging up the info as it gives a better understanding of the company and then we have to wait for an RNS or results which will really gives us the data.
In my view 7dig at the moment is at a really interesting point in its development and any good news will see it motor.

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

Personally I see 7dig being the first to turn a profit.If that turns out to be the case you will need to buy back in.👯

[pet lover] 18/12/2016 18:10

Smithie6

You might like to check out the big players in the streaming music market.All of them make a loss and have done for years. 7dig may be the first to make a profit next year.
7dig have seen the number of streams jump and are aiming for 20BN a year. Your looking at the past but it's now and the next 18 months that count.

[smithie6] 18/12/2016 18:09

Petlover

cDiscount
have big sales....but not in the music section
they look like another version of AOWorld or MediaMarkt or Euronics

selling TVs, cookers, hairdryers

and dog food !!


hxxp://www.cdiscount.com/animalerie/chiens/nourriture-pour-chien/l-1621001.html#_his_

I dont see them providing much income or profit to 7DIG especially after the % paid to the music rights owner and to cDigital themselves....and after subtracting the labour costs of 7DIG. Let's recall that cDiscount and similar companies have been around for years and also 7DIGITAL and its French acquisition have been as well....and both have been loss making with insufficient turnover and others have gone bust. I dont see a new product for cDigital making any difference to 7DIG at all.

[smithie6] 18/12/2016 17:59

H1 turnover of 5M...for 6 months

iTUnes probably has that ever 10 minutes..!

[smithie6] 18/12/2016 17:55

Petlover

gross negligence imho that they sold music to Guvera Australia and the contract did not require the Guvera Group to act as guarantor for payment in the case that Guvera Aus did not pay.....normal procedure imho

if the contracts with other customers are similarly badly written then the risk of other non-payments is real imo

Receivables is 4.73M

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Uf
receivables has stayed roughly flat (more on that later) while payables has gone from 3.8M to 6.5M !

co. has stayed in business by not paying for all the stuff is selling

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receivables 4.73M
turnover for 6 months is 5.25M

5.4 months of turnover has not been paid for !...in a 6 month period !!

that is too high imho

Those that recall my excellent analysis of the Globo accounts (hands up anyone ?? ;-) ) will recall similar situation/numbers.....stuff being sold not being paid for....GLobo later announced its accounts were false. Getting paid for sales is a vital part of staying in business.

Why is 7DIG bad at getting paid from customers ?
Perhaps since some are start ups like Guvera and have cash flow problems so they dont want to pay bills with their little cash...and then have no cash to pay wages or rent

imho in the digital world the end customers (the public) are billed very quickly for their consumption of music/product....either instantly...or monthly (often in advance !) so personally I struggle to see any justifiable reason for 7Digital not getting paid from the middle man that they sell to.
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And Petlover
...you real off big numbers....millions here...millions there...

the reality is that turnover for H1 was just over 5M. Flat wrt prev. year and not very high. Marginal for a company trying to support the costs of being listed.

[pet lover] 18/12/2016 17:44

Smithie 6

The company and the broker have both said that they think 7Dig will be profitable in 2017.They said this with 9 weeks to go of 2016.I am correct in thinking shareholders must be told if anything has / does change.? AIM rules.

[pet lover] 18/12/2016 17:37

Smithie6

Cash is tight I can't deny that.One way to change that position is for 7Dig to have won new orders.Another is to receive a cut of streaming revenues. Like most companies they could also take a bank loan.

[smithie6] 18/12/2016 17:33

Petlover
"Hence 7Dig are now working for the big labels. But you know that, don't you.?"

What, like Tesco's

ha ha
world famous as an internet music streaming provider !! ;-)

Apple, iTunes, Google, Amazon, YOutube, Vodafone, Spotify, Deezer watch out ...here comes Tesco !

[smithie6] 18/12/2016 17:30

petlover

net cash used in operations 639k.

+ change in payables & receivables = 1582 + 110 = 1692k

total = 2331k

= 2.3M cash used in H1

= 4.6M per year

Can you spin a gloss on that ??!!!

noting that the co. has spent the money raised in the merger and also from selling Audioboom shares....and now has a bank loan....and is still loss making yet now has a tougher environment imo to raise new money...as indicated by the price chart

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One poor RNS and this share price would open at a much lower price imho since the numbers are obviously very weak/vulnerable.

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Payables can not be ignored....
you can perhaps avoid paying your bills for a short time....but after a while your suppliers will insist on payment and/or will
- stop selling to you
- only sell to you if you pay cash (which 7DIG hasnt got)
- will require some g'tee of payment...which would cost you a % of the value to obtain from some financing house or bank...if available at all

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Deferred payment
I havent tried to look at that (there is no note of explanation since just interims) but the jump of 868k is probably a -ve factor....I would assume that sales numbers for H1 include sales with deferred payment....raising the question of whether the sales numbers for H1 have been manipulated using sales that happen in the future outside of H1

a real sale imo is one that gets paid for.....deferred payment infers risk especially with default and administration history in the sector such as Guvera...

[pet lover] 18/12/2016 17:25

Smithie6

Flat recurring is not good enough. Your right on that. I have bought for fast growth from that very high margin recurring revenue.You have just posted extra is rolling over into 2016 second half.

We also need to look at today's valuation of £7M. One quarter of its floatation price after failing to produce profits in a timely manner.If as I hope 2017 produces profits then the shares should rise. Simon Cole spoke this time last year of a 30% -40% share of a $250M market.Taking that on hoard profits might be £1M in 2017 £3M 2018 and £7M in 2019.So long as the growth kicks in.

[smithie6] 18/12/2016 17:13

nett current assets according to results

532k negative

not pretty....

(if debtors call in that debt then the company may not be able to pay since imo it has no building it can raise money on or other tangible asset it can sell or raise money on)

[smithie6] 18/12/2016 17:10

"Revenue H1
2016 5,247
2015 5,153"

"Delta + 2%"

"Licensing revenue, which forms the core of the business, has remained broadly flat at GBP3.0m (2015: GBP3.1m)."

"Excluding this, content revenue has remained broadly flat.
Creative revenue (formerly labelled production) has fallen slightly due to the movement of some large productions to later in 2016 compared to 2015."



For a loss making company these flat numbers are just not good enough imo !!

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Looks to have raised 27M and lost....23M ....je je !! and have a total equity of 790k !!


YOu can believe your 'hundreds of millions here' and 'hundreds of millions there' but the numbers say you are in dreamland. But on AIM that is very common, many companies where dirs say they are doing well about to fly to the stars suddenly go bust or de-list, 'cause history says that many AIM dirs tell porky pies.

[pet lover] 18/12/2016 17:03

Smithie6

Hence 7Dig are now working for the big labels. But you know that, don't you.?

[smithie6] 18/12/2016 16:58

Petlover
So this post perhaps upset you ?

If you put in some ear plugs and put on a blind fold.....maybe you can just refuse to hear any news that you dont like !!

(bad debts and writing off some of the payables from Guvera were fact)

Guvera....one of the many start ups 7DIG is working with....7DIG also being a loss making start up...and 7DIG bought a competitor in France that was in administration...and at least 2 other companies not far from 7DIG have also gone bust.....

ah, sorry, you dont want any posts with bad news !!



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18 Dec '16 - 14:22 - 1023 of 1029 0 0 Edit
More bad debt risks for 7DIG ?

part of Guvera went bust & failed to pay its debts.....other parts of Guvera could go the same way ?...other start ups that 7DIG works with phps to go the same way ?

[pet lover] 18/12/2016 16:10

With some 120 million users in more than 100 countries, musical.ly offers more than 2 billion online video clips and is one of the biggest clients of Amazon cloud service AWS in China.

The app attracts about 1 million new registered users a day and handles about 200 million new messages daily during peak seasons — all with a technology management team of only three engineers.

[pet lover] 18/12/2016 16:01

The world’s fastest growing video social network.