One Media - results for the year ended 31 October 2023

29 April 2024 - Press release

One Media iP Group Plc ("One Media", "the Company" or the "Group")
Audited results for the year ended 31 October 2023

 

 Robust results with core music rights business delivering in line with expectations

 

 

One Media iP (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 audited results for the year ended 31 October 2023.

 

Financial highlights

- 5% increase in total revenue to £5.4 million (2022: £5.1 million) and EBITDA of £1.4 million (2022: £1.8 million), driven by organic growth and active portfolio management.

- 5% uplift in net revenues (net of distribution charges, royalty and other costs) to £3.5 million (2022: £3.3 million).

- Operating profit of £0.5 million (2022: £0.9 million) and EPS of 0.05p (2022:0.20p), reflecting continued investment into TCAT in line with Group strategy.

- £2.1 million invested, including £1.4 million into new acquisitions matching the Company's appetite for proven, recurring income streams that have the potential for further monetisation.

- Strong balance sheet with cash balance of £1.2 million (2022: £2.2 million) offering headroom for strategic investment.

- IFRS NAV per Ordinary Share unchanged at 7p (2022: 7p).

- Operative NAV per Ordinary Share of 18p ⑴

- The directors recommend a final dividend of 0.055p per share.

 

Operational and portfolio highlights

- Acquisition of licensor's income share of Entertain Me catalogue including songs by Gloria Gaynor, The Drifters, Louis Armstrong, Don Williams and James Brown; funded through existing cash resources at advantageous earnings multiple.

- Renewal of distribution deal with The Orchard, including US$1.0 million advance.

- Ongoing active management of music and video rights portfolio, with focus on maximising potential of catalogues which include recorded and/or producers' royalty rights to songs written or performed by Culture Club, Don Williams, Mungo Jerry, José Carreras, Kid Creole, Mago De Oz and the producers royalty on certain Take That tracks.

- Continued strategic development of the TCAT software initiative, with trials with internationally recognised songwriters and  two major record labels and world's largest digital music distributor.

- New TCAT product – TCAT Protect aimed at individual artists and composers set to launch in 2024 as an 'App'.

 

Continuing growth of music market underpinned by positive structural trends

- Goldman Sachs' Music in the Air report (June 2023) maintained strong growth outlook for the music industry forecasting global music industry revenues to grow at +7.1% yoy in 2023 (+8% prior), with 2023-2030 CAGR upgraded to +7.3% (+7.1% prior).

- In March 2024, MIDiA Research reported 9.8% growth in global recorded music revenues in 2023 to $35.1 billion, compared to 7.1% in 2022, meaning the market is now more than double (124.5%) the size it was in 2015.

- New opportunities to license music and grow royalties continuing to emerge, including in new territories and with new technology advances.

⑴ Operative NAV is calculated by using the IFRS NAV, adjusting for the revaluation of catalogues assets to fair value and then adding back the catalogue amortisation

 

The consolidated statement of financial position for results for the year to 31 October 2022 have been restated to reflect a prior year adjustment for the Right of Use Asset and its relevant liability.

Michael Infante, CEO said: "The founding principle of deriving profitable income from music copyrights continues to be our prime focus. Given our ongoing investment program into TCAT after consultation with advisers and significant shareholders, we have continued to grow our revenues from music rights, delivering a robust set of results despite the challenging conditions presented during 2023. The trajectory for the music industry remains positive and music rights as an asset class continue to prove their resilience to wider markets."

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