One Media IP Group acquires percentage of licensor's royalty share in 5868 catalogue

One Media said on Wednesday that 5856 had been "a long-term licensor" to the firm, with its income growing "successfully" over the last ten years.

The AIM-listed group added that the deal would result in a percentage of the amount that One Media was paying in royalty fees being retained by the group, meaning that while the transaction would not add to turnover, the retention of royalties payable would now flow to the bottom line in cost savings.

The catalogue contains recordings by Muddy Waters, Tina Turner, Don Williams, Sister Sledge and Taveres.

Chief executive Michael Infante said: "Acquiring royalty rights that the company has previously paid out is a sensible profitable addition to our acquisitive strategy.

"With over 200 label partners we have extended the Harmony IP Initiative to any royalty-bearing participants so that label management and artists may benefit alike."

As of 1015 BST, One Media IP shares were up 3.49% at 8.15p.