In fact, SNWR presented a compelling case for why investors may want to act sooner than later to capitalize on a valuation disconnect that is not giving credit where it's due. Apparently, the more than 25% spike last week indicates some already are. Still, the more excellent news is that even after its recent surge, those considering a position now should also benefit from SNWR's sum of its parts that justify a significantly higher share price. Thus, investors may want to consider the move higher a precursor of better things to come before booking profits.
And that's not an overly bullish assumption, especially with
Unlocking The Value At Intercept Music
That deal ushered in a strategy change at
Best of all, being better positioned than at any time in its history, SNWR is executing its mission flawlessly. In less than a year, the combined power of SNWR and Intercept has delivered significant growth, made substantial investments to further its market reach, and has proved its model can successfully provide specialized services to meet current as well as the expected surge in demand from its core market of music labels and artists.
The more excellent news- they are just getting started. And while 2021 may have been transformative, 2022 is set up to be exponentially better. Proof of that is in the numbers, with 2021 totals showing best ever financial and operational performance with a tailwind to reach additional record-setting milestones this year. Not only that, growth could happen faster than expected, with SNWR's business model scalable to leverage Intercepts expertise to deliver unparalleled services offerings to clients compared to competing independent music service companies.
How good are the early results of the SNWR/Intercept integration? In a word, excellent. Already, SNWR has scored impressive increases across the board of performance indicators, including a 70% increase in year-over-year gross sales and a 22% spike in per artist revenues since 2020. In addition, SNWR is cleaning up its balance sheet, converting more than 75% of short-term convertible debt and successfully raising
Client Base Continues To Increase At Record Pace
After expanding and refining service offerings, SNWR reported increasing its customer base significantly over the past year, serving at least 40 independent labels and roughly 300 independent artists. Also, a big push was made to monetize artist branding, with the company developing online merchandising stores to enhance revenue. That's not all. The company also expanded artist marketing services to include playlisting, public relations, advertising, and physical recordings to capitalize on other revenue-generating opportunities inherent to its artist-focused services.
So, with a best-in-class platform firing on all cylinders, what's in store for
Remember, talent isn't everything. Access to technology and leveraging the connections of industry players are just as important. And that's where SNWR makes its impact, giving artists a single platform allowing them to focus on what they do best and leaving the technical and marketing legwork to experts that understand that landscape.
Of course, it takes a fortified infrastructure to pull that off, and
Infrastructure To Support Growth
Several initiatives were completed making SNWR more efficient in meeting that demand and need, which should also help revenues fall faster to its bottom line. Part of those enhancements included streamlining its customer support services, which has already resulted in a 50% decrease in customer service requests. That gives SNWR more time to focus on its labels. SNWR found that compared to individual artists, it can enhance operational efficiency and allow the company to maximize its resources by bringing multiple artists under its services umbrella in a single contract.
And with a staff that tripled in size over the past year, that's happening. SNWR hired a full-time marketing manager, added more customer service and marketing team members, and signed with top-end, outsourced service providers to provide multi-layered support for software development, public relations, and investor relations services. Outsourcing adds expertise while eliminating company-sponsored employee overhead. In other words, outsourcing key positions drives shareholder value higher by reducing redundant costs.
Indeed, tuning up its team sets SNWR up for success. Keep in mind the music industry tends to be a loyal beast, and it doesn't take long for gossip to spread. Do a good job, and everybody knows; do a bad job, and signing talent and labels can be a tremendous challenge. Fortunately, SNWR is the former, and the results of its work show.
Rewards Of Efficient Growth
Already, the SNWR team has helped artists earn more than 100
Even better, and as noted, SNWR is just getting started. Moreover, despite global trade and logistical headwinds, SNWR can boast this- they are in the right sector, doing the right things at the right time. And as a result of a booming industry, SNWR is in line to benefit since technology has no borders.
That's obvious. In 2021 alone, and during the pandemic, the industry continued to stack YoY growth in recorded and streaming music, emphasizing independent artists more than ever. In the first six months of 2021, recorded music revenue was pacing 27% over the same time last year. While good, the second half of 2021, once reported, is expected to be higher.
In fact, projections call for the music industry revenues to post their highest annual mark since the all-time high set in 1999. The streaming side, of course, has also exploded in size, with digital sales accounting for about 58% of total industry revenue. By the way, despite the broad global adoption, streaming is still in its infancy, evidenced by a surge in songs streamed per month up by over 300% during the past two years. And there are no signs of the trend slowing.
On the contrary, another boom cycle could be in the works, supported by an IPO by
Compelling investment Opportunity
And the excellent news there is that SNWR makes a compelling case, even providing a roadmap, for investment consideration. Remember, SNWR has already put into place the framework needed to cash in on a
Music artists also rely on merchandise and ticket sales to build revenue streams. But, an even bigger market emerged last year, with non-fungible tokens (NFTs) earning global popularity as a tool to monetize work. It's a huge market already, with global NFT sales eclipsing
It's a likely outcome, especially with SNWR providing a win-win partnership solution. Its Intercept Music subsidiary is one of the few full-service companies offering a comprehensive, powerful suite of tools focused primarily on independent labels and artists. Moreover, unlike some of its competitors, the Intercept platform delivers potentially unrivaled major-label services designed to generate revenue and allow the artist to maintain 100% ownership.
For artists, it's the best of both worlds. And signing clients is a win for SNWR in the process. Now, with the framework, capital structure, and personnel in place, SNWR is in its best position ever to leverage the value inherent to Intercept Music deep into the marketplace. As noted, at the right time, too. Artists and labels need what SNWR is selling. Why?
Because labels and artists using Intercept Music benefit from substantial marketing muscle, including massive social media reach, targeted ad campaigns, and playlisting. They also get turnkey online merchandising and, perhaps most valuable, free worldwide music distribution to more than 200 countries and 80 major streaming services. In short, SNWR's marketing and distribution platform gives independent artists and labels a competitive advantage in a crowded market.
A Proposition Too Good To Ignore
Hence, there's a lot to like from an artist and/or label perspective. Still, investors can win, too. And a trend is emerging to support that presumption, as investors note its roughly penny a share stock price doesn't serve justice to a company serving up high double-digit percentage growth in some of its vital metrics. But, as is often the case, once untapped value is exposed, investors will pounce on the investment opportunity if the price is right. Clearly, that's a scenario tailor-made for
Is SNWR already in play? Signs point to yes. And if so, investors are right to bid SNWR shares higher. After all, not many penny stock entertainment technology companies can come close to offering the services SNWR provides. And in a competitive landscape separated by reputation, having advantages matters.
Actually, it's those advantages that make
Changing The Representation Landscape
Thus, put most simply, SNWR is changing the way independent artists and labels do business and, at the same time, respect the person, the brand, and the content. Believe it or not, that's a difference unique to
It's another instance where being different is good. And the more learned about
Still, recognizing a disconnect is only half the battle; being timely to the opportunity makes up the other half. Right now, investors evaluating the SNWR value proposition have a chance to seize on both. And in a turbulent market, taking advantage of undervalued stocks in booming sectors may provide more than a safe haven; they can deliver potentially significant near and long-term rewards in the process.
Thus, while evaluating the
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The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.
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