One Media iP half-year results: stable royalties offset currency drag

One Media iP Group's latest half-year results are a mixed but fairly steady affair. Reported revenue and profit moved lower, yet the underlying music portfolio continued to produce broadly unchanged royalty receipts in US dollar terms.

That distinction matters. Most of the Group's income is received in dollars, so translating it into sterling reduced the reported numbers even though the underlying royalty stream remained stable.

Meanwhile, cash generation remained positive, borrowings declined and management said trading was in line with expectations for the remainder of the year.

Investors can read the original company announcement for the full unaudited accounts.

One Media iP's key half-year figures

Metric	H1 2026	H1 2025	Movement
Revenue	£2.34 million	£2.51 million	Down 6%
Net revenue	£1.60 million	£1.70 million	Lower
EBITDA	£1.10 million	£1.15 million	Lower
Operating profit	£0.64 million	£0.70 million	Lower
Operating margin	27%	28%	Down 1 percentage point
Profit before tax	£0.59 million	£0.66 million	Lower
Continuing operations profit	£0.43 million	£0.52 million	Lower
Continuing operations EPS	0.20p	0.23p	Lower
Cash	£1.18 million	£0.51 million	Higher
Coutts debt facility	£0.58 million	£1.00 million	Lower

EBITDA means earnings before interest, tax, depreciation and amortisation. It is commonly used to show operational profitability before certain accounting and financing costs.

It is worth noting that the H1 2025 EBITDA comparison has been stated as £1.15 million, having previously been reported as £1.2 million.

Currency explains much of the revenue decline

Headline revenue dropped 6% to £2.34 million. One Media attributed that reduction mainly to unfavourable foreign exchange movements and non-recurring items that benefited the previous year's period.

Management said like-for-like revenue was stable once those factors were excluded.

The clearest evidence comes from royalty receipts. One Media received approximately US$1.95 million of net income during the period, compared with US$1.94 million a year earlier.

However, the weaker dollar reduced sterling net revenue by approximately £0.1 million. This left reported net revenue at £1.60 million, down from £1.70 million.

That is reassuring from an operational perspective, but currency sensitivity remains a genuine risk. One Media has limited control over exchange rates, and a further weakening of the dollar against sterling could continue to hold back reported growth.

Profitability remained healthy, but earnings fell

Operating profit declined from £0.70 million to £0.64 million, while the operating margin slipped from 28% to 27%.

That is still a healthy margin, particularly given the currency pressure. Administration expenses also fell to £0.53 million from £0.58 million, partly offsetting the decline in net revenue.

Profit before tax fell to £0.59 million from £0.66 million. Profit from continuing operations attributable to shareholders was £0.43 million, producing earnings per share of 0.20p compared with 0.23p.

Total profit attributable to shareholders was higher at £0.51 million after including a £75,147 asset disposal contribution. The prior-year total was £0.19 million, reflecting losses from the discontinued TCAT operation.

For investors assessing the ongoing music rights business, the continuing operations figure is the more useful comparison. On that basis, earnings moved backwards.

Cash generation is the standout positive

The balance sheet provides the strongest part of this update.

Net cash inflow from operating activities rose to £0.68 million from £0.54 million. After investment and financing outflows, cash increased by £0.39 million during the six months, reaching £1.18 million.

At the same time, total borrowings fell to approximately £0.58 million. Cash therefore exceeded borrowings by roughly £0.60 million at the period end.

One Media also repaid £187,240 of loan notes during the half year. Continued debt reduction should reduce financial risk and provide greater flexibility when considering catalogue investment or other uses of capital.

No dividend was paid during the period. The Board said it continues to evaluate opportunities to enhance shareholder value through active portfolio management, catalogue development and disciplined capital allocation.

Finding more value in the existing catalogue

One Media iP Group owns a diversified catalogue of more than 400,000 music tracks. Its strategy is not simply to hold those rights and wait for royalties. Management is working to improve discoverability, metadata quality and audience engagement.

Several areas performed particularly well, including Point Classics, selected publishing assets, Carinco, Locomotive and catalogue acquisitions completed in recent years.

The Group also created new visual content around recordings by George McCrae and The Troggs. A previously unheard 1969 interview with George Harrison attracted more than 65,000 views shortly after publication.

The commercial importance is broader than the views themselves. Archive interviews, videos and other supporting material can introduce older recordings to new audiences and potentially generate additional streaming activity.

Synchronisation is another opportunity. This means licensing music for use in television, films or other visual media. One Media secured Point Classics placements in the CBS series Tracker, the feature film Only Living Pickpocket in NY and Peacock's The Copenhagen Test.

These placements can produce direct licensing revenue while increasing exposure for the underlying recordings.

How One Media is using AI

One Media said it is using artificial intelligence-assisted tools in a controlled operational role. Applications include workflow efficiency, audience engagement, metadata enhancement, searchability and visual content creation.

This is a practical rather than transformational claim. Better metadata and searchability could help overlooked tracks appear in relevant searches, playlists or licensing opportunities.

The Group stressed that it intends to preserve the integrity and authenticity of original works. That balance will be important as technology plays a larger role in music discovery and rights management.

What investors should watch next

Management said One Media was trading in line with expectations and remained highly cash generative. It also highlighted continued growth in streaming subscriptions and global recorded music revenue as a supportive industry backdrop.

The key positives are stable underlying dollar royalties, resilient margins, stronger operating cash flow and lower borrowings. Active catalogue management is also producing visible signs of audience engagement and synchronisation demand.

The negatives are equally clear. Reported revenue, operating profit and continuing earnings per share all declined. The business remains exposed to dollar-sterling movements, while future growth will depend on management finding effective ways to monetise the catalogue.

These figures are also unaudited and were not reviewed by the Group's auditors.

For the second half, the most useful indicators will be underlying royalty receipts, further debt reduction and evidence that archive content, technology and synchronisation placements are generating meaningful financial returns. Stable is acceptable, but investors will ultimately want One Media's stronger balance sheet and catalogue initiatives to translate into renewed earnings growth.