One Media iP Group PLC (AIM:OMIP) reported a jump in revenue and said it expects a supportive market backdrop to continue.
Revenues increased 13% in the six months ending 30 April 2022 to £2.4mln compared to the same period 12 months earlier, driven by “new acquisitions, organic growth and active management of portfolio”.
According to a statement from the digital music rights acquirer, publisher and distributor, the supportive market within the music industry continues to accelerate, with more opportunities to generate income through royalties.
As well as that, positive industry developments in the US should increase the royalty rate to 15.1% from 10.5% following the Copyright Royalty Brand ruling in July 2022.
Underlying earnings (EBITDA) grew 39% to £1mln, notwithstanding the addition of TCAT overhead expenses, its copyright analysis tool that protects and identifies content across various platforms.
However, the group’s cash balance fell from £6.4mln to £2.1mln.
Operationally, the group acquired the licensor’s share of the royalties to the Orbital Digital and Rapier Music catalogue.
That includes “40 branded record labels and several thousand diversified recordings with proven revenue streams,” from artists such as Joe Strummer and Kool & The Gang.
The London-listed company said its TCAT business plan is also progressing, with it now operating in 178 territories with three record labels which are expected to translate into long-term contracts.