One Media iP Group PLC (AIM:OMIP) ncreased its revenues by 15% to £2.7mln with a 67% net margin in the first half of 2023.
Underlying (EBITDA) earnings fell 20% to £800,000, largely due to an allocation of resources to its subsidiary software platform TCAT, a platform that helps music copyright owners detect infringement, including by AI-generated music.
However, revenues generated from TCAT have increased at a fast pace, surging 147% to £182,000 in the reporting period.
As a result of the TCAT management's 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.
An expected uptick in operating expenses including in regards to the TCAT investment saw a reduction in operating profit from £627,000 to £342,000, with basic earnings per share dropping from 0.19p to 0.07p.
Cash in the bank as of April 30, 2023, was £2.2mln, compared to £2.1mln at the same time in 2022.
A final dividend for the 2022 year of 0.055p per share was distributed in May 2023.
In the trading statement, the music and video intellectual property rights monetisation group said it has a 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.
One Media iP chief executive Michael Infante commented: "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.”