Trading Update
FY24 revenue flat at £5.0m, EBITDA up 15% to £2.1m; disposed of TCAT technology subsidiary post year-end.
- Total revenue from continuing operations circa £5.0 million (prior £5.0 million)
- Net revenue approximately £3.4 million (prior £3.4 million)
- EBITDA from continuing operations circa £2.1 million (prior £1.8 million)
- Cash reserves £0.5 million (prior £1.2 million)
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One Media iP Group plc (AIM: OMIP), the digital music rights acquirer, publisher and distributor, provides the following trading update for the financial year ended 31 October 2024.
Post period disposal of non-core assets
On 27 November 2024, post year end, the Company announced that it had entered into an agreement with Round Group Limited ("Round") to dispose of its entire interest in the capital of TCAT Limited ("TCAT"), its technology subsidiary, in exchange for a shareholding in Round. In the twelve months to 31 October 2023, TCAT contributed an operating loss of £566,632 to One Media's overall operating profit of £498,138. As of 31 October 2023, TCAT had net assets of £258,008.
The completion of this transaction fully aligns with the Group's long-term strategy to prioritise its core expertise of acquiring and monetising digital music rights and music and video affiliated business activities, while the divestment has also enabled a further streamlining of operations. The Company and its management are now in a stronger position to enhance shareholder value, with the immediate priority being the implementation of a consolidation phase aimed at growing cash reserves to further its strategic music business objectives.
Full Year 2024 performance
For the twelve months to 31 October 2024, the Group expects to deliver total revenue from continuing operations of circa £5.0 million (FY2023: £5.0 million) and net revenue of approximately £3.4 million (FY2023: £3.4 million). EBITDA from continuing operations is expected to be circa £2.1 million (FY2023: £1.8 million), reflecting a 15% increase, with the increase underpinned by active cost management. Cash reserves at the year-end were £0.5 million (FY2023: £1.2 million).
Michael Infante, CEO of One Media iP said: "Despite a challenging market backdrop, we delivered robust revenues and achieved a significant improvement in EBITDA during last year, underlining our ability to extract value from our music rights portfolio while carefully managing costs. The strategic disposal of TCAT puts us in a much stronger position for 2025, as we refocus the business on our core expertise of music rights management. To this end, our immediate priority will be to restore our cash reserves while we continue to assess opportunities to enhance the portfolio and deliver value for shareholders."
The Board looks forward to providing further updates in due course alongside the release of the Group's full year results.
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