7Digital Group PLC (LON:7DIG) is a leading provider of turnkey solutions that enable businesses to offer digital music services to their customers. It has made significant strategic progress over the last year, culminating in the acquisition of its largest European competitor, 24-7, which adds £18m of secured revenues over three years and synergy potential. We believe it is well placed to benefit from the evolution in the market for music streaming and forecast profitability from FY18; the shares look extremely attractive at these levels.
24-7 acquisition cements leading position
7digital has made considerable progress over the last year and now counts all three major music groups as partners, along with a number of strategically significant clients in the retail, hardware, social media and automotive segments. The £2.2m acquisition of 24-7, which closed last month cements this leading position and should significantly increase its earnings post-integration. It also adds two important reference clients in the electronics retail and telecoms segments.
To read the entire report Please click on the pdf File Below: