7digital has released a preliminary look at its financial results from 2015 in advance of the complete report, which is due out at the end of March. The company said the results for the year ended in line with expectations, with overall revenue expected to be in line with 2014’s total. However, the company did see shifts in revenue composition last year. It saw annualized monthly recurring revenues increase by 72% to about £5.8 million, compared with £3.4 million in the previous year, while licensing revenue rose 21% to about £6.5 million. On the other hand, content revenue dropped by about 50%, which the company noted as part of an intentional move away from these lower margin sales.
It was also a good year for growth in 7digital’s customer base, with deals inked for eMusic, Onkyo, ROK Mobile, Electric Jukebox, and Google Cast, among many others.
“We are pleased with the progress made in 2015 – it was a year in which our business model was validated by the growth rate of our recurring licensing revenues,” CEO Simon Cole said. “We remain on track to achieve profitability by the end of 2016 and look forward to continued growth this year and beyond.”