Summary: The Octave Music Group Inc. - S&P Global Ratings’ Credit Research

Summary: The Octave Music Group Inc.

Summary: The Octave Music Group Inc. - S&P Global Ratings’ Credit Research
Summary: The Octave Music Group Inc.
Published Jul 12, 2018
9 pages (2751 words) — Published Jul 12, 2018
Price US$ 225.00  |  Buy this Report Now

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Abstract:

Small size despite market-leading position in digital jukebox space. Modest barriers to entry in the company's niche area of operations. Secular pressures facing traditional brick-and-mortar retailers. Recurring revenues from subscription-based background music services threatened by competition from alternatives such as streaming services. High adjusted leverage of about 6.1x as of December 31, 2017 and minimal free cash flow. Financial sponsor ownership. The negative outlook reflects our view that the company's credit measures are likely to remain weak for the rating over the next year, with operating trends in both digital jukebox (TouchTunes) and in-store entertainment services (PlayNetwork) segments remaining soft with low-single digit percent growth in net coinage, weakness in the retail industry in the U.S., and the company's margin

  
Brief Excerpt:

...Business Risk: Weak Financial Risk: Highly leveraged + Small size despite market-leading position in digital jukebox space. + Modest barriers to entry in the company's niche area of operations. + Secular pressures facing traditional brick-and-mortar retailers. + Recurring revenues from subscription-based background music services threatened by competition from alternatives such as streaming services. + High adjusted leverage of about 6.1x as of December 31, 2017 and minimal free cash flow. + Financial sponsor ownership....

  
Report Type:

Summary

Issuer
GICS
Consumer Electronics (25201010)
Sector
Global Issuers
Country
Region
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MLA:
S&P Global Ratings’ Credit Research. "Summary: The Octave Music Group Inc." Jul 12, 2018. Alacra Store. Sep 18, 2018. <http://www.alacrastore.com/s-and-p-credit-research/Summary-The-Octave-Music-Group-Inc-2070714>
  
APA:
S&P Global Ratings’ Credit Research. (). Summary: The Octave Music Group Inc. Jul 12, 2018. New York, NY: Alacra Store. Retrieved Sep 18, 2018 from <http://www.alacrastore.com/s-and-p-credit-research/Summary-The-Octave-Music-Group-Inc-2070714>
  
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