One Media iP Group Plc - Trading Update

06 January 2023 - Press release

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.