7digital taking a write-off of Guvera debts

7digital blue canvas7digital announced that it is writing off the remaining debt it is owed by troubled streaming service Guvera. “After careful consideration and extensive negotiation with Guvera, we believe that receipt of further payments is now in doubt and have therefore made a provision against the full outstanding balance of £733,000,” the B2B digital music provider said. The write-off will contribute to 7digital’s first-half financial results.

7digital has had several client developments so far in 2016. It picked up Playster in August and Pono Music in July, in addition to closing its acquisition of Snowite and inking deals with Musical.ly and Dial.

Guvera has been struggling financially after the Australian Securities Exchange shut down its pitch to list shares. The platform has shuttered in several markets, including home country Australia, and two subsidiaries have been placed into voluntary administration.

Anna Washenko