Shares of 7Digital Group PLC (LON: 7DIG) today surged 50% after the music streaming company announced that it had achieved profitability in Q4 2020 and that H2 2020 revenues were higher when compared to H1 revenues.
The company further said that it expects to report full-year profitability in the 2021 financial year after winning multiple contracts in H2 2020, which will generate substantial revenues for the company next year.
7digital won five new contracts coupled with four contract extensions and eight contract renewals in H2 2020, which contributed heavily to its profitability in the fourth quarter.
Some of the new contracts signed in H2 2020 include a deal with a global technology company, the Triller and Apex Rides contracts with existing customers including ROXI, GrandPad, jazzed and Moodagent renewing or extending their contracts.
7Digital share price
7digital shares today surged 50% to trade at 1.65p having rallied from Wednesday’s closing price of 1.1p.