Shares of B2B end-to-end digital music solutions company 7digital have rallied Monday morning on the news it has signed 7 new contracts with new and existing customers worth a total of £1 million.
The company said £700k has been acquired within the last month, and the majority of the revenue is set to be recognised in 2022.
The 7 new contract wins have seen 7digital win 3 new clients and obtain 4 contract expansions and extensions, including within the company's essential music streaming and home fitness markets.
7digital's 3 new customers have been acquired on long-term contracts, which all have an initial duration of 24 months. The 4 contract extensions with existing customers include expanding the contract period and the outline of additional services.
Commenting on the new contracts, Paul Langworthy, CEO of 7digital, said: “These new and renewed contracts reflect the continued growth in demand for our music services including in our target segment of home fitness. As previously stated, multiple new contracts are awaiting signature and it is great to see these start to come through.
“It is also pleasing that we are receiving more-and-more long-term contracts, which enhances our visibility over future revenues. With our new financing in place, we continue to strengthen our fundamentals and look to the future with confidence.”
7digital's share price surged over 11% following the announcement. However, its shares have lost some of that initial momentum and are currently up9% at 0.551p. Earlier this month, the company's share price rose over 3% after it secured a £1 million increase to its revolving credit facility.
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