8.35am: Music group links up with personal training specialist
Digital music group 7digital Group PLC(LON.7DIG) is stepping into the home fitness trend which has been booming during lockdown.
It has signed a two year deal with FORME Life, a personal training system, to supply its music catalogue to stream content which can be synchronised to a training video and played on demand and live.
Paul Langworthy, 7digital chief executive, said : “Our label relationships and advanced technology have positioned us as the leader in home fitness solutions by providing seamless music integration to live and on-demand programming. The deal, which is key to our strategy, is expected to be a major part of the revenue contribution from this growing market segment to overall revenues in 2021.
“As demand for online and home fitness accelerates, we’ve seen a clear shift towards content-driven workout experiences. Entrants to this market segment can use our leading global platform, and by taking advantage of our end-to-end, fully automated system for accessing licensed music for fitness it frees them to focus on innovative technologies and experiences.”
There has been a healthy response to the news from investors. 7digital’s shares have added 13.7% or 0.95p to 1.62p.
Still with music, and shares in Gear4music Holdings PLC (LON.G4M), the UK’s largest online retailer of musical instruments and music equipment, are up a tuneful 6.9% or 50p to 775p after an upbeat trading statement.
It said both its UK and European businesses had been performing strongly this year so far after Brexit, with revenues and margins coming in better than expected just a month ago. It said: “The Board now expects EBITDA for the 12 months ending 31 March 2021 will be not less than GBP18.2m, up from the guidance provided on 14 January 2021 of not less than GBP16.5m.”
In a buy note, broker Peel Hunt said: ” It is an improved and improving business and the industry should evolve in its favour.”