One Media IP: Flat Revenue Projection, Strong Position Ahead

One Media iP Group (OMIP) has announced that it expects its total revenue from continuing operations for 2024 to remain flat compared to the previous year, at around 5 million pounds ($6.2 million). Despite this, the company's Chief Executive Officer, Michael Infante, expressed confidence that the disposal of its technology subsidiary, TCAT, has put OMIP in a much stronger position for the year ahead. Let's delve into the reasons behind this projection and explore the potential opportunities for OMIP to enhance its portfolio and deliver value for shareholders.

Flat Revenue Projection: A Blip or a Trend?

OMIP's flat revenue projection for 2024 may seem concerning at first glance, especially considering the overall growth trend in the digital music rights industry. However, it is essential to examine the company's historical performance and the context surrounding the disposal of TCAT.

In the half-year ending April 30, 2024, OMIP's revenue grew by 15.70% compared to the previous year, reaching 2.76M GBP. Although this growth rate slowed down compared to the 4.57% growth in the fiscal year ending October 31, 2023, it still indicates that OMIP's core business has been performing relatively well.

Moreover, the disposal of TCAT, a non-core subsidiary that was still in its beta phase of development with limited revenues but substantial operating costs, may have contributed to the flat revenue projection. By divesting TCAT, OMIP can now focus its resources and management time on its core music rights management business, which has been performing well and in line with expectations.



Opportunities Ahead: Enhancing the Portfolio and Delivering Value

With the disposal of TCAT complete, OMIP can now refocus on its core expertise and explore several opportunities to enhance its portfolio and deliver value for shareholders. Some of these opportunities include:

1. Restoring cash reserves: By divesting TCAT, OMIP can now prioritize restoring its cash reserves, providing the company with a stronger financial foundation to pursue growth opportunities and invest in its core business.
2. Expanding the music catalogue: OMIP can allocate more resources to acquiring and monetizing digital music rights and other intellectual property. By expanding its music catalogue, the company can increase its revenue streams and diversify its portfolio. For instance, the acquisition of the Entertain Me catalogue in late 2023 allowed OMIP to gain income exposure to new songs in its "sweet spot of music nostalgia."
3. Capitalizing on the vinyl resurgence: OMIP can capitalize on the resurgence in physical music sales by launching new vinyl imprints, such as The Carolean. This can help the company tap into the enthusiasm for vinyl releases and generate additional revenue.
4. Strategic investments: With the disposal of TCAT, OMIP can redirect resources towards strategic investments in its core business. This could involve investing in new technologies, platforms, or partnerships that enhance the company's ability to manage and monetize its music rights portfolio.
5. Assessing opportunities to enhance the portfolio: Post-disposal, OMIP can reassess its portfolio and identify opportunities to enhance its value. This could involve divesting underperforming assets, consolidating income streams, or investing in high-growth areas within the music industry.

By pursuing these opportunities, OMIP can strengthen its position in the digital music rights market and deliver value for its shareholders.



Conclusion: A Constructive Outlook for OMIP

While OMIP's flat revenue projection for 2024 may raise concerns, it is essential to consider the context surrounding the disposal of TCAT and the company's historical performance. By divesting TCAT, OMIP can now focus on its core music rights management business and explore several opportunities to enhance its portfolio and deliver value for shareholders. As the company restores its cash reserves and invests in strategic initiatives, investors should maintain a constructive outlook on OMIP's prospects in the digital music rights market.