One Media IP Group PLC (LON:OMIP) has reported a 93% increase in underlying profits in the half-year to the end of April and said its operations have remained “unimpacted” by the coronavirus pandemic.
The half-year period, which was characterised by the group as a period of consolidation after completing five acquisitions in 2019, saw revenue increase 28% to £2.03mln and the company said it continues to trade in line with expectations.
WATCH: One Media's Michael Infante hails 'robust model' as first half profits rise
Underlying profits (EBITDA) increased to £757,678 from £392,192 and pre-tax profits were up 177% to £399,236.
Bank balances ended April at £1.1mln, versus £0.86mln at the end of October and £5.2mln a year ago as cash was used for acquisitions instead of equity.
The company said in May that it was returning to paying a dividend, with an interim paymnt of 0.055p per share that was paid earlier this month.
“As the world adjusts to life under COVID-19, we continue to observe changing habits in both music consumption and genres being streamed as a result of the dramatic changes to people’s daily routines,” said chief executive Michael Infante.
“Coinciding with this, we have also seen an uplift in streaming of children’s, classical and ambient music, all of which favour One Media’s diverse catalogue.”
With staff now working remotely, Infante added: “This ‘new normal’ lends itself to our continuing operations and we have successfully proven our robust business model in the first six months of 2020.”
The half-year has seen interest from the music industry for the company’s proprietary TCAT anti-piracy technology, as stated in its recent trading update, and its unique intellectual property equity release programme, Harmony IP.
On the outlook, chair Claire Blunt said the group's highly scalable business model put it in a strong position to expand its geographical footprint in the second half of the year, as well as push its new product offerings and capitalise on the growth of streaming globally.
Shares in the company rose 13% to 7.9p in early trading on Monday, an 18-month high.