6 January 2023
One Media iP Group Plc
("One Media", the "Group" or the "Company")
Trading Update
Core business trading in line with expectations against positive industry backdrop
One Media iP (AIM: OMIP), the digital media content provider which specialises in the active monetisation of music and video intellectual property rights together with copyright protection technology, provides the following update for the year ended 31 October 2022.
The Group's core business of music exploitation continues to perform in line with expectations and the Company expects to deliver revenue of c. £5.1 million (reflecting year on year revenue growth of c. 16%) and EBITDA of c. £1.8 million for the year to 31 October 2022. The outlook for the music industry, despite wider market challenges, remains on a strong and positive growth trajectory.
The Group is also pleased to report that its anti-piracy SaaS subsidiary, TCAT Ltd ("TCAT"), has signed additional industry contracts and trials for its proprietary software and is continuing to gain traction internationally with both major and independent labels. The TCAT business is delivering an important and much needed service to music rights holders (including One Media) and to the creative community by providing protection from copyright infringement and loss of due income through the illegal activities of others. The Board continues to believe that the TCAT business presents a significant, scalable opportunity with exciting potential.
As announced in the Group's half year results on 19 July 2022, the One Media Board, together with the newly formed TCAT board, have been exploring independent funding options for TCAT. However, since that time the One Media Board has undertaken a further assessment of the strategic position of the TCAT business in conjunction with its advisors and with the engagement with major shareholders. This included a consideration of both the external and internal funding options available, given the strength of the Group's balance sheet, and concluded that, in its opinion, greater value can be captured by retaining TCAT within the Group and supporting TCAT in reaching its next level of growth.
The Group will therefore continue to use its cash resources to invest into TCAT's operations, as it has done to date, with a view to benefitting from the medium term value creation potential of the business. The net cash investment is expected to be up to c. £1.4 million in the current financial year (up from c. £0.8 million in FY22) but it is not expected to impact on the Group's dividend policy.
Michael Infante, CEO of One Media iP commented: "We are pleased to be on course to deliver results that are in line with expectations, including double digit revenue growth. The Board's decision, which was made alongside our major shareholders and advisors, not to progress with external funding options for TCAT at this particular time is based on a thorough assessment of its future potential. Having come through that process and against the positive trajectory of the industry backdrop, we believe that One Media has more to gain by investing into the next stage of TCAT's growth and exploring the strategic options available to realise value creation further down the line.
"The outlook for the music industry is positive and with technology advances accelerating the emergence of further monetisation opportunities, we are well placed to take advantage of these developments through our deep experience and extensive network, built up over many years."
The Group's full year results for the year ended 31 October 2022 are expected to be announced in March 2023.
ENDS
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.
For further information, please contact:
One Media IP Group Plc |
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Michael Infante | Chief Executive Tel: +44 (0)175 378 5500
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Claire Blunt | Chairman Tel: +44 (0)175 378 5501
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Cairn Financial Advisers LLP | Nominated Adviser |
Liam Murray / Jo Turner / Ludovico Lazzaretti
| Tel: +44 (0)20 7213 0880
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Cenkos Securities plc | Broker |
Max Gould/Giles Balleny (Corporate Finance) Michael Johnson (Sales)
| Tel: +44 (0)20 7397 8900 |
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Claire Turvey, Fourth Pillar
| Financial PR Tel: +44 (0)7850 548 198 |
About One Media iP Group Plc
One Media is a digital music rights acquirer, publisher and distributor with a catalogue independently valued at £34.8 million (as at April 2022). The Group specialises in purchasing and monetising intellectual property rights with proven, repeat income streams. One Media adds value to its content by maximising its availability in over 600 digital stores globally, including Apple Music, YouTube, Amazon and Spotify.
One Media's music is also widely used for synchronisation in film and TV whilst its video content is primarily viewed on YouTube where One Media operates over 20 YouTube channels as a certified partner. Additionally its copyright infringement and digital music audit tool software TCAT is used by major record labels and the world leading digital international distributor. Men & Motors, the Company's branded car channel, is now available via YouTube www.youtube.com/channel/UCNLiybn_9jgQaV0NZlSRwCg
One Media is listed on the AIM Market of the London Stock Exchange under the ticker 'OMIP'.
For further information, please visit www.omip.co.uk and www.harmonyip.com/
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.
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