Image source: @Tumisu/Pixabay

Highlights

  • Vinyl Group is an ASX-listed music technology company, which was listed on 21 September 2010
  • In 1HFY24, the revenue of VNL jumped 318% YoY to AUD 876k
  • In latest quarter, revenue increased by 218% QoQ to AUD 1.86 million                 

Vinyl Group Limited (ASX: VNL), previously known as Jaxsta Limited, operates brands like Jaxsta, Vampr, and Vinyl.com. Vinyl.com, a recognized record store, holds accreditation on charts and provides sales data for physical albums to Billboard and the Australian Record Industry Association (ARIA).

In the third quarter of the financial year 2023 (3QFY24), revenue of the firm surged by 218% QoQ to AUD 1.86 million, while in the first half of FY24 (1HFY24), revenue jumped 318% YoY to AUD 876,000. The half yearly revenue was backed by implementation of its product roadmap and focused marketing and sales efforts. The company highlighted that its combined revenue is now on an annualized trajectory of around AUD 10 million.

In 1HFY24, net loss after income tax stood at AUD 4,797,000.

Recent business update

On 26 April 2024, the company notified that RealWise Group Holdings Pty Ltd has chosen to convert its convertible notes into shares, and the transaction had received thumbs up in the EGM. With this, the principal balance of AUD 6,955,413 would be converted into stocks at AUD 0.04482 apiece of conversion price. 100% of the accrued interest on the note was waived by RealWise, informed VNL.

Third quarter activities report was released by VNL on 24 April 2023. During the reported period, cash from customers surged to AUD 1.690 million, compared with AUD 1.166 million in the previous quarter. The operating net cash burn during the period stood at AUD 1.256 million, up 125% over the previous quarter.

0utlook

After acquiring Brag Media, the firm introduced a short-term integration plan to unlock synergies of its technology platforms, including the launch of a merch store on Vinyl.com with official Rolling Stone merchandise.

With its full backend refactoring of Jaxta, the firm is prepared to its tech with the most modern and efficient coding practices, to save cost substantially and adopt an AI framework to enhance the customer experience.

Share performance of VNL

VNL shares closed 35.42% higher at AUD 0.130 apiece on 26 April 2024. Including today’s gain, VNL share price has jumped 182.61% in the past one year and in the past six months, it has increased by 154.90%.

The 52-week high of VNL is AUD 0.096, recorded on 24 April 2024, while the 52-week low is AUD 0.073, recorded on 2 May 2023.

VNL Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 26 April 2024. The reference data in this report has been partly sourced from REFINITIV.