Music rights owner One Media iP plc HY 2024 results

28 June 2024 - Press release

One Media iP Group Plc ("One Media", the "Group" or the "Company") 

Interim Results for the six months ended 30 April 2024 

Revenues stable with core business of music rights continuing to deliver positive performance

 

One Media (AIM: OMIP), the digital media content owner and manager which specialises in the active monetisation of music and video intellectual property rights, together with copyright protection technology, announces its unaudited interim results for the six months ended 30 April 2024.

 

Financial Highlights

- Increase in Group revenue to £2.8m (H1 2023: £2.7m), of which £2.6m was generated from intellectual property royalties, driven by organic growth and expert management of copyrights portfolio

- Net revenue at £1.8m (H1 2023: £1.8m) mainly due to ongoing allocation of resources to the Group's Technical Copyright Analysis Tool software ("TCAT"), in line with Group strategy

- 14% increase in EBITDA to £0.9m (H1 2023: £0.8m), with growth largely due to management focus on cost efficiencies within TCAT business and ongoing performance of core portfolio of music copyrights

- Notwithstanding funding of TCAT, considering that no new material additions have been made to the portfolio, the core business of copyright investments performed positively and in line with expectations, delivering an EBITDA of £1.1m

- Debt decreased to £1.3m (H1 2023: £1.7m) with continuation of payments in line with refinancing terms reducing Coutts facility by a further £0.4m

- Cash balance at 30 April 2024 of £0.9m (H1 2023: £2.2m)

- Increase in EPS to 0.08p (H1 2023: 0.07p)

- Net margin maintained at 67% (H1 2023: 67%)

- Final dividend of 0.055p per share distributed in June 2024

 

Operational Highlights

- Continued focus on active management of music copyrights portfolio to maximise income potential of rights under ownership

- Entertain Me acquisition, completed in November 2023, performing well and delivering multiples in line with expectations

- No further catalogue investments due to prioritisation of cash towards TCAT subsidiary  

- Experimental launch of a new record label, 'The Carolean', to take advantage of the explosion in sales of vinyl record market, where a 7.1% CAGR is projected from 2024-2032

- Efforts to establish and grow software subsidiary, TCAT, ongoing, with focus on cost efficiencies, new product launches and sales and marketing functions

 

Market and outlook

- Music industry continuing to enjoy benefits of industry tailwinds, supporting strong value and revenue growth with growing opportunities to monetise music.

- Long term impact of artificial intelligence (AI) on the music industry yet to be determined, with the potential for both positive and negative outcomes for the music industry and the Group, including the increased discoverability of its catalogues and copyright infringement, which TCAT was built to tackle. The management and Board continue to keep developments under review as part of its day to day operations.

Michael Infante, CEO said: "One Media's principal expertise is in managing and investing in music copyrights and this core part of our business continues to perform well and in line with expectations. Our capacity to grow our Group profits, however, is somewhat constrained by the continued strategic allocation of resources, including management time, towards establishing and growing our music anti-piracy technology tool, TCAT. This strategy remains under constant review and, as stated previously, we ultimately see TCAT's future lying outside of the core music group. As expected, the delivery of shareholder value continues to be the overriding priority for the management team and Board."

This announcement contains inside information for the purposes of the UK Market Abuse Regulation. The person who arranged the release of this information is Michael Infante, Chief Executive Officer of the Company.