Management Board of IMS S.A. (“Company”, “Issuer”) informs that a subsidiary of the Issuer – Closer Music Sp. z o.o. – signed on July 11 an agreement with a Western European company with approximately 30,000 audio subscription locations in several countries for Closer Music to provide music libraries and use them in its playlists worldwide.
Estimated annual revenues from the public use of Closer Music’s music libraries will amount to approximately PLN 5-7 million in the first year of the agreement. The agreement was concluded for a fixed period until 30 June 2022. The agreement is subject to automatic renewal for a further fixed period of twelve months unless either party effectively delivers a written notice of resignation to the other party no later than three months before the expiry of the agreement.
Such renewal (prolongation) of the agreement will recur after the expiry of each successive term of the agreement. The Company expects that with the expansion of Closer Music’s catalogues, revenues from the agreement will be even higher in the subsequent years of the agreement. In the second half of 2021 and subsequent years, the Issuer expects Closer Music to sign further such agreements, primarily with companies in Western Europe and the United States.