7digital expects significant profit increase in 2018
Source - SMW
7digital expects 2018 profits to increase significantly to an estimated EBITDA of £3.4m compared with previously anticipated £1.9m, shareholders at today's annual general meeting will be told.
The group the management team would give a presentation on the benefits of the recent acquisition of 24-7 Entertainment from MediaMarktSaturn and the plans to integrate the 24-7 business, based in Copenhagen, into the 7digital technology platform.
It said the presentation would be made available on the company's website (http://about.7digital.com) later today and chairman Don Cruickshank would make the following statement: "As announced on June 20, the Company estimates that the Acquisition will increase 7digital licensing revenue in 2017 by approximately £5m and more than £8m in 2018.
"The company believes that by increasing the investment in its core platform in 2017, it can accelerate the integration of the two businesses.
"This will allow for quicker cost reductions and higher profitability in 2018.
"The board now expects 2017 to result in a combined loss before interest, tax, depreciation and amortisation of approximately £1.5m, much reduced when compared to that of 2016.
"In 2018 profits are anticipated to increase significantly to an estimated EBITDA of £3.4m compared with previously anticipated £1.9m.
"The board is confident that 2018 will be a year of profitability and positive operating cash flow as the full benefits of the acquisition are realised."