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Digital music solutions company 7digital reported narrower annual losses as cost cuts offset a fall in revenue owing to the pandemic-led deferral in new business and renewals.
For the year ended 31 December 2020, pre-tax losses narrowed 61.3% to £2.3 million even as revenue fell to £6.5 million from £9.3 million
Gross margin for 2020 was 71.1%, up from 64.0% in 2019.
'The sales momentum from the end of last year has continued in 2021, which we expect to translate into significant year-on-year revenue growth and deliver a full year of positive EBITDA,' the company said.
'Looking further ahead, based solely on our current contracts and pipeline for 2021 - before the contribution from any new deals signed in 2022 - we expect an even stronger 2022 with a substantial increase in EBITDA and strong revenue growth over 2021,' it added.