Licensing now accounts for the majority of gross profits (up 17%). With a 72% y-o-y increase in annualised monthly recurring revenue (MRR) and a strong pipeline, 7digital is on track to break even in H216. The proposed Snowite acquisition (for £0.6m in shares plus debt of €1.8m, stc) should generate significant synergies and accelerate this journey. FY15 was a pivotal year for the company and the industry, yet the share price remains backward looking and we believe it offers an excellent buying opportunity.
