TIDMOMIP
RNS Number : 1171E
One Media iP Group PLC
28 June 2023
28 June 2023
One Media iP Group Plc
("One Media", the "Group" or the "Company")
Interim Results for the six months ended 30 April 2023
Continued strong revenue performance with TCAT investment
showing results
One Media (AIM: OMIP), the digital media content owner and
manager which specialises in the active monetisation of music and
video intellectual property rights, together with copyright
protection technology, announces its unaudited interim results for
the six months ended 30 April 2023.
Financial Highlights
-- 15% increase in revenue to GBP2.7m (H1 2022: GBP2.4m), of
which GBP2.5m was generated from intellectual property royalties
driven largely by organic growth and active management of portfolio
of copyrights
-- 14% uplift in net revenue to GBP1.8m (H1 2022: GBP1.6m)
-- EBITDA of GBP0.8m (H1 2022: GBP1.0m) reduced due to
allocation of resources to TCAT in line with Group strategy. Core
business of copyright investments performed positively delivering
an EBITDA of GBP1.1m
-- Trials of TCAT software in the six months to 30 April 2023
generated GBP182,000, compared to GBP74,000 for H1 2022, reflecting
a 147% year on year increase
-- Reduced EPS of 0.07p (H1 2022: 0.19p) as a result of strategic investment into TCAT
-- Net margin maintained at 67% (H1 2022: 67%)
-- Cash balance at 30 April 2023 of GBP2.2m (H1 2022: GBP2.1m)
-- Final dividend of 0.055p per share distributed in May 2023
Operational Highlights
-- Ongoing active management of music and video rights
portfolio, with focus on maximising potential of catalogues which
include recorded and/or producers' royalty rights to songs written
or performed by Culture Club, Don Williams, Mungo Jerry, José
Carreras, Kid Creole, Mago De Oz and Take That
-- Continued growth and expansion of TCAT client base, with
internationally recognised songwriters, two majors and several
independents among those now either trialling or licensing TCAT's
software
-- New product - TCAT Insight - launched post period end with
pipeline of further products to add to suite of TCAT software
solutions designed to tackle digital copyright infringement
Outlook
-- Continued positive outlook for industry, with new
developments bringing increasing opportunities to generate value
from digital copyrights as well as requirements for protecting
copyrights from illegal infringement
Michael Infante, CEO said: "The digital rights division of our
business continues to perform strongly and in line with
expectations. Given our specialist skillset, the positive
structural tailwinds and supportive developments in the music
industry, we remain optimistic about the growth prospects for our
catalogues portfolio.
"Alongside the ongoing management of our copyright catalogues,
our strategic focus has been on investing in the potential we see
in TCAT against this advancing industry backdrop. We continue to
invest in content with both time and resource and will, as part of
our day-to-day, exploit opportunities that fall within the
Company's acquisition multiple expectations. Over the past six
months the TCAT team has introduced several new products, tailored
to the digital copyright challenges being experienced by the
industry . AI has had much press acclaim and equally has spread
elements of concern within the music industry. Our commitment to
staying ahead of the curve and embodying AI in both our catalogue
enhancement and TCAT detection process, as well as using the
technology to improve our metadata, has enabled us to differentiate
ourselves from competitors and provide our customers with
cutting-edge solutions that address their evolving needs. We are
already seeing positive reactions as we seek to transform its
potential into shareholder value."
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation. The person who arranged the
release of this information is Michael Infante, Chief Executive
Officer of the Company.
For further information, please contact:
One Media IP Group Plc
Michael Infante Chief Executive
Tel: +44 (0)175 378
5500
Claire Blunt Chairman
Tel: +44 (0)175 378
5501
Cairn Financial Advisers LLP Nominated Adviser
Liam Murray / Jo Turner / Ludovico Tel: +44 (0)20 7213
Lazzaretti 0880
Cenkos Securities plc Broker
Max Gould/Giles Balleny Corporate Tel: +44 (0)20 7397
Finance) 8900
Michael Johnson (Sales)
Claire Turvey, Fourth Pillar Financial PR
Tel: +44 (0)7850 548
198
About One Media iP Group Plc
One Media is a digital music rights acquirer, publisher and
distributor with a catalogue independently valued at GBP34.8
million (as at April 2022). The Group specialises in purchasing and
monetising intellectual property rights with proven, repeat income
streams. One Media adds value to its content by maximising its
availability in over 600 digital stores globally, including Apple
Music, YouTube, Amazon and Spotify.
One Media's music is also widely used for synchronisation in
film and TV whilst its video content is primarily viewed on YouTube
where One Media operates over 20 YouTube channels as a certified
partner. Additionally its copyright infringement and digital music
audit tool software TCAT is used by major record labels and the
world leading digital international distributor. Men & Motors,
the Company's branded car channel, is now available via YouTube
www.youtube.com/channel/UCNLiybn_9jgQaV0NZlSRwCg
One Media is listed on the AIM Market of the London Stock
Exchange under the ticker 'OMIP'.
For further information, please visit www.omip.co.uk and
www.harmonyip.com/
Chairman's Statement
At this half year milestone, I am pleased to report that our
company continues to demonstrate revenue growth, innovation in our
response to fast moving industry developments and an ongoing
commitment to delivering value on behalf of our shareholders. The
strong performance is testament to the One Media management and its
wider team, whose hard work continues to deliver consistent
results.
Financial performance
Our financial performance for the first half of the year has
been in line with expectations. For the fourth period in
succession, revenues have seen a double digit increase, improving
by 15% to GBP2.7m (H1 2022: GBP2.4m) and putting us in a strong
position for the second half of the year. This is an excellent
reflection of the quality of the Company's portfolio of music
recording rights and its efficacy at monetising their value through
the various avenues available to drive copyright royalties.
Net revenues are up 14% to GBP1.8m (H1 2022: GBP1.6m), however
we have reported a reduction in in our EBITDA to GBP0.8m as we
continue with the stated Group strategy of investing into our SaaS
platform, TCAT. The allocation of resources to developing and
growing TCAT, an update on which is provided below, has naturally
impacted on earnings per share (EPS), which have reduced to 0.07p
(H1 2022: 0.19p). Despite this, our margins and cash balance remain
stable at 67% and GBP2.2m respectively.
Borrowings have decreased to GBP1.7m (FY 2022: GBP1.9m).
Alongside the continued positive performance, a final dividend
for the 2022 year of 0.055p per share was distributed in May 2023
which was approved by shareholders at the annual general meeting
held on 26 April 2023.
Operations and investments
During the first half of the year, in line with the Group's
stated strategy, the management's efforts have been focused on
maximising the existing portfolio of music copyrights and on
investing into growing the TCAT platform to enable it to reach its
potential.
The One Media team's success in monetising the music and video
rights that we own is well known, underpinned by its keen
expertise, strong network across the creative industries and
favourable market tailwinds. A highlight in the first half of the
year was the placement of 'Concerto for Violin, Strings and Basso
Continuo No. 1 in A minor BWV 1041: Allegro', from the Point
Classics catalogue, into an episode of 'Star Trek: Picard'. The
episode it featured in (season 3, episode 8) aired on Paramount+ on
6 April 2023.
The strategic allocation of cash towards TCAT stems from our
objective to expand our investment into the proprietary software
platform to grow its brand and customer base at this important
juncture for the industry. While it means we have not committed to
any significant music catalogue investments this half year, the
relevance of TCAT's offer to the music industry is increasing by
the day and investments into research and development have
continued to yield innovative solutions, enabling the whole Group
to respond to evolving digital technology market demands with even
more effectiveness.
The increased support that the Group has provided over the past
months has contributed to the successful launch of several new TCAT
services. The new products have been well received by customers,
who continue to trial initiatives within their music content
delivering anti-copyright infringement results in the fight against
music piracy.
In May 2023, TCAT announced the launch of a new product to its
proprietary software platform, 'TCAT Insight'. The new software's
scanning ability can help music copyright owners to detect
copyright infringing tracks, including AI generated music, and can
also identify possible covers using a process that incorporates
metadata matching and artificial intelligence to analyse
lyrics.
With the explosive growth of AI and the debate it has prompted
in the music industry, this new product is extremely pertinent and
points to the future potential of TCAT that, with the right
direction, can be unlocked ultimately to benefit of One Media's
shareholders.
As a result of the TCAT management's active engagement across
the creative spectrum over the past 12 months, the software is now
being licensed by two of the major record companies as well as
several independent record companies. Among TCAT's clients are the
leading British independent, Domino Recording Company, which is
using the anti-piracy software on behalf of a number of its artist
roster including a major English rock band; Empire Distribution, an
American distribution company and record label focused
predominantly on Hip Hop music; Irving Azoff's Iconic Artists
Group; Sony Music; The Orchard (Sony's distribution arm); and a
number of prominent, internationally renowned songwriters and
composers, who are specifically using TCAT Insight to protect their
catalogues from infringement, particularly from AI generated
music.
Efforts to strengthen existing customer relationships from our
music related activities and forge new strategic partnerships have
yielded additional uses for the TCAT software. The pipeline of new
customers is advancing, with several sets of negotiations in train
and we have successfully entered several new market trials,
leveraging our innovative products and solutions to create
continued interest in the battle against the new emerging threats
to legitimate music monetisation. In H1 2022 these trials generated
GBP74,000 in revenue, while trials in the six months to 30 April
2023 generated GBP182,000, reflecting a 147% increase vs the prior
year.
This gives a flavour of the strides that have been made over the
past year in growing the TCAT offer and brand, while also providing
an indication of the market opportunity available to generate
additional sales and sustainable revenues in the future.
Environmental, social and governance
ESG is an integral part of our corporate strategy and we
recognise the importance of environmental stewardship, social
responsibility and good governance.
We remain committed to upholding the highest standards of
corporate governance, transparency and ethical business practices.
Our Board of Directors and management team have diligently worked
to strengthen our governance framework, ensuring that we operate
with integrity and in the best interests of our shareholders.
We have actively engaged with local communities through various
philanthropic activities and volunteering efforts. This includes
our voluntary contribution to the BPI; The Tring Park School of
Performing Arts; placements for undergraduates and apprentices
within our Creative Technician team; and offering assistance to
aging artists within the One Media digital distribution arena to
help them to better understand their royalty reporting income with
one-to-one engagement .
Market backdrop and outlook
As we look towards the remainder of the year, we are optimistic
about the opportunities that lie ahead. With a strong performance
delivered for the first six months, the Company is well positioned
to navigate the challenges of an ever-changing business landscape
and, importantly, to capitalise on the emerging trends in our
industry.
The music industry's growth is unabated and, indeed, forecasts
are being revised upwards. This year's IFPI's Global Music Report
showed that global revenue from recorded music grew by 9% to
US$26.2 billion in 2022, an eighth consecutive year of growth. This
trajectory is being driven by the sustained success of streaming
and the growth in subscription revenue.
While global capital markets have faced some challenges over
recent times, the income derived from music royalties, underpinned
by positive structural trends, is stable, secure and annuity-like,
offering an attractive option for investors.
Against this backdrop, One Media's continued investment into our
people, technology and innovation is driving sustainable growth and
creating long term value for our shareholders.
We extend our sincere appreciation to our employees, valued
customers, and loyal shareholders. Your support has been
instrumental in our success thus far. We will remain committed to
delivering on our strategic vision.
Thank you for your continued confidence in our company.
Claire Blunt
Chairman of One Media
Unaudited Consolidated Statement of Comprehensive Income
For the six months ended 30 April 2023
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended 31 October
30 April 30 April 2022
2023 2022
GBP GBP GBP
Revenue 2,731,644 2,381,784 5,128,840
Distribution charges (572,920) (526,466) (1,090,703)
Royalty costs (227,917) (232,036) (459,115)
Other costs (110,088) (26,155) (253,334)
_________ _________ _________
Net revenue 1,820,719 1,597,127 3,325,688
Amortisation of catalogues (408,353) (378,251) (806,082)
Administration expenses (1,094,913) (611,342) (1,604,863)
FOREX gains 24,696 18,134 34,365
_________ _________ _________
Operating profit 342,149 625,668 949,108
Share based payments - (30,228) -
Finance costs (66,411) (90,205) (384,416)
Finance income - - -
_________ _________ _________
Profit on ordinary
activities before
taxation 275,738 505,235 564,692
Tax expense (110,033) (90,031) (126,442)
_________ _________ _________
Profit for period
attributable to equity
shareholders and total
comprehensive income
for the period 165,705 415,204 438,250
========= ========= =========
Basic earnings per
share 0.07p 0.19p 0.20p
========= ========= =========
Unaudited Consolidated Statement of Financial Position
As at 30 April 2023
Unaudited Unaudited Audited
30 April 30 April 31 October
2023 2022 2022
GBP GBP GBP
Assets
Non-current assets
Intangible assets 14,384,649 14,562,132 14,438,031
Property, plant
and equipment 25,940 23,486 12,998
_________ _________ _________
14,410,589 14,585,618 14,451,029
_________ _________ _________
Current assets
Trade and other
receivables 1,546,820 1,443,787 1,472,369
Cash and cash equivalents 2,157,169 2,138,294 2,175,663
_________ _________ _________
Total current assets 3,703,989 3,582,081 3,648,032
_________ _________ _________
Total assets 18,114,578 18,167,699 18,099,061
========= ========= =========
Liabilities
Current liabilities
Trade and other
payables 1,030,698 1,055,961 993,646
Deferred tax 158,253 137,512 158,253
_________ _________ _________
1,188,951 1,193,473 1,151,899
Borrowings 1,685,210 1,769,987 1,872,450
_________ _________ _________
Total liabilities 2,874,161 2,963,460 3,024,349
_________ _________ _________
Equity
Called up share
capital 1,112,231 1,112,231 1,112,231
Share redemption
reserve 239,546 239,546 239,546
Share premium account 9,484,577 9,484,577 9,484,577
Share based payment
reserve 504,399 534,627 504,399
Retained earnings 3,899,664 3,833,258 3,733,959
_________ _________ _________
Total equity 15,240,417 15,204,239 15,074,712
_________ _________ _________
_________ _________ _________
Total equity and
liabilities 18,114,578 18,167,699 18,099,061
========= ========= =========
Unaudited Consolidated Statement of Changes in Equity
For the six months ended 30 April 2023
Share Share Share Share Retained Total
capital redemption premium based earnings equity
reserve payment
reserve
GBP GBP GBP GBP GBP GBP
At 1 November
2021 1,112,231 239,546 9,484,577 504,399 3,418,054 14,758,807
Proceeds
from the
issue of
new shares - - - - - -
Profit for
the six months
to
30 April
2022 - - - - 415,204 415,204
Share based
payment charge - - - 30,228 - 30,228
________ _________ _________ ________ _________ _________
At 30 April
2022 1,112,231 239,546 9,484,577 534,627 3,833,258 15,204,239
Proceeds
from the
issue of
new shares - - - - - -
Dividends
paid - - - - (122,345) (122,345)
Profit for
the six months
to
31 October
2022 - - - - 23,046 23,046
Share based
payment charge - - - (30,228) - (30,228)
________ _________ _________ ________ _________ _________
At 31 October
2022 1,112,231 239,546 9,484,577 504,399 3,733,959 15,074,712
Proceeds
from the
issue of
new shares - - - - - -
Profit for
the six months
to
30 April
2023 - - - - 165,705 165,705
Share based
payment charge - - - - - -
________ _________ _________ ________ _________ _________
Balance at
30 April
2023 1,112,231 239,546 9,484,577 504,399 3,899,664 15,240,417
======== ========= ========= ======== ========= ========
Unaudited Consolidated Cash Flow Statement
For the six months ended 30 April 2023
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
30 April 30 April 31 October
2023 2022 2022
GBP GBP GBP
Cash flows from operating
activities
Profit before taxation 275,738 529,487 564,692
Amortisation 408,353 384,388 806,082
Depreciation 25,571 24,840 40,577
Share based payments - 30,228 -
Finance income - - -
Finance costs 66,411 90,205 384,416
(Increase)/decrease in
receivables (74,451) 3,703 (24,879)
(Decrease)/increase in
payables (72,802) 30,031 (175,323)
Corporation tax paid (6,108) - (14,926)
_________ _________ _________
Net cash inflow from
operating activities 622,712 1,092,882 1,580,639
_________ _________ _________
Cash flows from investing
activities
Investment in copyrights
/ licenses (72,791) (1,050,897) (1,225,577)
TCAT development (282,181) (411,548) (534,459)
Investment in fixed assets (38,512) (4,319) (9,569)
Finance income - - -
_________ _________ _________
Net cash used in investing
activities (393,484) (1,466,764) (1,769,605)
_________ _________ _________
Cash flow from financing
activities
Finance cost paid (57,722) (53,637) (205,554)
Bank loan - - 1,900,000
Loan notes repayment (190,000) - (1,900,000)
Loan notes - - 126,715
Dividend paid - - (122,345)
_________ _________ _________
Net cash (outflow) from
financing activities (247,722) (53,637) (201,184)
_________ _________ _________
Net change in cash and
cash equivalents (18,494) (427,519) (390,150)
Cash at the beginning
of the period 2,175,663 2,565,813 2,565,813
_________ _________ _________
Cash at end of the period 2,157,169 2,138,294 2,175,663
========= ========= =========
Notes to the Interim Report
For the six months ended 30 April 2023
1. Nature of operations and general information
One Media iP Group Plc and its subsidiaries' ("the Group")
principal activities are the acquisition and licensing of
audio-visual intellectual copyrights and publishing for
distribution through the digital medium and to a lesser extent
through traditional media outlets.
One Media iP Group Plc is the Group's ultimate parent company
incorporated under the Companies Act in England and Wales. The
address of One Media iP Group Plc registered office is 623 East
Props Building, Goldfinger Avenue, Pinewood Road, Iver Heath,
Buckinghamshire, SL0 0NH.
The financial information set out in this Interim Report does
not constitute statutory accounts. The Group's statutory financial
statements for the year ended 31 October 2022 are available from
the Group's website. The auditor's report on those financial
statements was unqualified.
2. Accounting Policies
Basis of Preparation
These interim consolidated financial statements are for the six
months ended 30 April 2023. They have been prepared following the
recognition and measurement principles of IFRS. They do not include
all the information required for full annual statements, and should
be read in conjunction with the consolidated financial statements
of the Group for the year ended 31 October 2022.
This unaudited interim statement has not been subject to a
review by the Group's auditors James Cowper Kreston.
Comparatives
The comparative periods represent the unaudited results for the
six months period ended 30 April 2022 and the audited twelve months
figures for the year ended 31 October 2022.
3. Segmental Analysis
IFRS 8 'Operating Segments' requires the Group's segments to be
identified on the basis of internal reports about components of the
Group that are regularly reviewed by the Chief Operating Decision
Maker to allocate resources to the segments and to assess their
performance. The Chief Operating Decision Maker is considered to be
the Chief Executive Officer of One Media IP Group Plc.
The Chief Operating Decision Maker receives and reviews
segmental operating profit. Certain central administrative costs
including Group Directors' salaries are included within the Group's
Licenses result. This is consistent with the results as reported to
the Chief Operating Decision Maker.
Each segment is shown net of intercompany transactions and
balances within that segment. The eliminations remove intercompany
transactions and balances between the different segment which
primarily relate to the net draw down of loans and short-term
working capital funding provided by One Media IP Group Plc to the
other company in the Group. Inter-segment transactions are
undertaken in the ordinary course of business on arm's length
terms.
Information regarding the Group's reportable operating segments
for the period ended 30 April 2023 is shown below:
Licenses TCAT Total
Income statement GBP GBP GBP
Revenue 2,550,124 181,520 2,731,644
--------------------------------- ---------- ---------- ------------
Distribution charges (572,920) - (572,920)
Royalty costs (227,917) - (227,917)
Other costs (45,390) (64,698) (110,088)
--------------------------------- ---------- ---------- ------------
Net revenue 1,703,897 116,822 1,820,719
Amortisation (365,629) (42,724) (408,353)
Administration expenses (652,512) (442,401) (1,094,913)
Foreign exchange gains 32,962 (8,266) 24,696
Operating profit 718,718 (376,569) 342,149
Finance costs (66,411) - (66,411)
Profit / (loss) before taxation 652,307 (376,569) 275,738
Tax expense (110,033)
Profit for the period 165,705
Licenses TCAT Eliminations Total
Total assets and liabilities GBP GBP GBP GBP
-------------------------------- ------------ ------------ ------------- ------------
Total assets 18,721,304 1,662,407 (2,269,133) 18,114,578
Total liabilities (2,791,105) (2,352,189) 2,269,133 (2,874,161)
-------------------------------- ------------ ------------ ------------- ------------
Total segment net assets/
(liabilities) 15,930,199 (689,782) - 15,240,417
-------------------------------- ------------ ------------ ------------- ------------
Revenue by segment
The Group considers it has two business segments with its Profit
from the acquisition and exploitation of mixed media intellectual
property rights for distribution and a SAAS platform, ultimately
earned from its sole activity in the United Kingdom.
Year
Unaudited Unaudited ended
30 April 30 April 31 October
2023 2022 2022
GBP GBP GBP
Licenses and other
media intellectual
property 2,550,124 2,308,162 4,761,943
TCAT 181,520 73,622 366,897
2,731,644 2,381,784 5,128,840
============ ========== ============
4. Earnings per share
The calculation of the earnings per share is based on the profit
for the financial period divided by the weighted average number of
shares in issue during the period.
Unaudited Unaudited Audited
Basic earnings 6 months ended 6 months ended 12 months
per share 30 April 2023 30 April 2022 ended
31 October
2022
Profit for period
attributable to
equity shareholders 165,705 415,204 438,250
Weighted average
number of shares
in issue at period
end 222,446,249 222,446,249 222,446,249
_________ _________ _________
Basic earnings
per share 0.07p 0.19p 0.20p
========= ========= =========
The diluted earnings per share would be lower than the basic
profit per share as the exercise of warrants and options would be
dilutive.
5. Share capital
Unaudited Unaudited Audited
30 April 30 April 31 October
2023 2022 2022
Group and company GBP GBP GBP
Issued:
Ordinary shares of 0.5p
each
222,446,249 ordinary shares
of 0.5p each 1,112,231 1,112,231 1,112,231
========== ========== ==========
6. Interim statement
Copies of this statement are available from the Group's
registered Office at:
623 East Props Building, Goldfinger Avenue, Pinewood Road, Iver
Heath, Buckinghamshire, SL0 0NH.
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identified by their use of terms and phrases such as "believe",
"could", "should" "envisage", "estimate", "intend", "may", "plan",
"potentially", "expect", "will" or the negative of those,
variations or comparable expressions, including references to
assumptions. These forward-looking statements are not based on
historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of
operations, performance, future capital and other expenditures
(including the amount, nature and sources of funding thereof),
competitive advantages, business prospects and opportunities. Such
forward looking statements reflect the Directors' current beliefs
and assumptions and are based on information currently available to
the Directors.
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