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One Media's profits skyrocket amid music streaming surge
Intellectual property rights acquisition outfit One Media iP Group increased adjusted operating profits 121% to £535, in 2017 on revenues up 14% to £2.33m.
AIM-quoted One Media kept gross margins remaining stable at 45% as the growth in revenues enabled its operating profit to increase 927% year-on-year to £297,416, which the Pinewood Studios-based group said was primarily due to a heightened demand for its recordings as a result of a general uptick in consumers streaming music. Cash at the end of the period picked up 14% to £383,051.
One Media's chief executive and chairman, Michael Infante, said, "A year ago I reiterated my confidence in streaming and that of the music industry at large, this has proven to be key in our corporate financial turnaround.
"We have weathered the worst of the drop, as consumers transitioned from downloading to streaming and as predicted by me, it has now reflected in growth.
"As consumers continue to change their music buying habits, and embrace the streaming services provided by the major streaming sites such as Apple Music, Spotify and Amazon, like the Dodo, no new downloading sites are emerging. Devices like the Amazon Echo (Alexa) or Google's Home, provide a brand new experience in daily audio consumption and serves to provide another rapid paradigm shift in subscription funded listening."
As of 0920 GMT, shares had gained 7.78% to 9.70p.