One Media iP’s performance shows resilience of business model and music streaming market – broker
The AIM-listed group, which acquires and licenses audio-visual copyrights and publishing rights and provides other tools for the music industry to monetise intellectual property, published half-year results on Monday showing pre-tax profits surge 177% to £399,236 on sales up 28% to £2.03mln.
The top-line growth was split 9% via organic channels and 19% from acquisitions.
The financial performance “is testament to the resilience of its business model and the market in which it operates”, said analyst Oliver Holmes in a note to clients.
He noted that global music streaming fundamentals have proven strong amid the coronavirus pandemic, with demand even increasing for, which has enabled One Media to trade strongly post period end.
As well as global streaming revenue growing 23% to US$11.4bn last year, accounting for 56% of global recorded music revenue, paid subscribers grew 32% to 358mln.
Holmes noted that subscriber growth is a driver of financial performance for One Media and is forecasted to grow 25% in 2020 to hit 450mln, primarily driven by emerging markets, exclusive content and customer acquisition initiatives such as bundled offers from telecoms companies.
The analyst said this growth outlook has been corroborated by Spotify and Apple Music, with both announcingRead More – Source