7digital unveils contract wins on re-admission to AIM

10th Jun 2014 08:00

Digital music and radio services company 7digital has scored two contract wins, including a new partnership with Guvera, a streaming music service. The deals were announced on Tuesday, following the stock's re-admission to the AIM market. Under the agreement, Guvera will use 7digital's platform to support its imminent expansion into India and Middle Eastern territories on mobile handsets manufactured by Lenovo, the technology group. The roll-out of its services will include a preloaded app on all Lenovo smartphones and tablets. 7digital has also formed a global HD music partnership with Onkyo Corporation, a Japanese hi-fi company, under which they will take digital music store e-onjyo music to Europe and the US.The group said the contract wins move it "significantly" towards business to business revenues from new services in streaming services and high definition audio services. "This is a very exciting day, the launch of a new company which brings together the best of digital music and radio at a time of enormous change and opportunity in both industries," 7digital Chief Simon Cole said. "New funding of £7m in total gives us a significantly strengthened balance sheet and it was particularly encouraging to see the Executive Directors and senior management participating in the fundraising." He also said that while the new contracts would not change market expectations, they do change the revenue mix towards streaming and away from downloading.NR