Profits of any kind are rare in digital music, but there's money to be made powering other company's services. White-label service Omnifone announced Tuesday its first annual operating profit in the company's nine-year history.
The London-based company, whose Music Station platform powers the music services of companies such as Sony and Research In Motion, announced earnings before income tax, amortization and depreciation (EBITDA) of $6.1 million and a pre-tax profit of $4.65 million on revenues of $47.2 million in its fiscal year ended April 30. In the previous year, Omnifone posted a pre-tax loss of $34.8 million on revenue of $21.6 million.
Sony Music Unlimited, Research In Motion's BBM Music, Rara.com are among the services powered by Omnifone's MusicStation cloud-based media platform. The company powers services in 30 countries on five continents and works with all majors, hundreds of independents and an array of publishers and collection societies. In other words, Omnifone is paid to do all the dirty work that a consumer-facing electronics or technology company couldn't possibly do on its own.
Omnifone also announced it acquired Swedish content management specialist Global Media Bank for an unspecified sum. According to its website, Global Media Bank streamlines the value chain by providing content ingestion, metadata validation, reformatting, storage and reporting services.