One Media IP Group PLC (LON:OMIP) said it is to split off its anti-piracy business TCAT into a new subsidiary to capitalise on the evolving music streaming market.
Revenues in the year to end-October rose by 14% to £4mln with profit before tax up by a third to £740,000.
Since the half-year, One Media has also acquired a back catalogue of producer royalties from Take That's songs and launched a new Men & Motors TV channel as well forming the new TCAT arm.
Michael Infante, chief executive, said the period to October had been another successful year for the company, pointing out that even in the midst of the Coronavirus (COVID-19) pandemic underlying profit or EBITDA grew 38%.
Explained the rationale behind the TCAT move, he said: “Separating TCAT from the core business underpins our two activities. Primarily, the core business of the group, being the continuation of content exploitation within our genres, offers a bespoke ‘antipiracy detection’ service not only to ourselves, but also the music industry at large.
“TCAT, we believe, can become a major player to both record labels and artists alike, whose content is exploited in over 167 territories globally within the 130 million-music tracks traded daily on digital stores.
“As 2021 progresses, and further to our successful fundraise of £6 million, Harmony iP www.harmonyip.com is being offered as an alternative method of allowing copyright holders to partially cash-out and partner with One Media, taking a share in the asset income and giving TCAT care to the content now under joint ownership.
“This both enhances the contents’ future earning ability and gives the original owner an opportunity to participate in the growth of future earnings of their life’s work.
“Working in unison for the first time, with both author and label, sees a joint mission of ensuring transparency in the future values of content.”
One Media paid a final dividend of 0.055p and closed the year with cash of £6.8mln after a £6mln placing in August.