All Things Considered [AQSE:ATC], the London-based, Aquis-listed independent music company has been cranking up the volume in 2024, reporting an increase in revenue by more than 100% over the year to £50m.
ATC’s impressive growth marks a significant milestone as the company achieved positive adjusted operating EBITDA of around £1.5m, up from a loss of £0.46m the previous year. As previously reported, ATC started life in 1996 as a ticketing agency before moving into the management of music artists targeting music agents looking for an ‘artist-focussed’ representation for their clients.
ATC also represents artists directly, including Nick Cave of Bad Seeds fame and Sister Bliss formerly of Faithless, and through ATC Live supports artists’ touring plans. Additionally, Driift, ATC’s producer and promoter platform, offers livestreaming services.
The company has grown substantially over the past few years, especially through its expansion across the Atlantic. Headquartered in London, ATC has offices in Los Angeles and Copenhagen. The company is keen to grow by acquisition as well as organically.
ATC’s latest set of results validate the agency’s strategic direction and showcase its success in leveraging a fully integrated artist services model that spans talent management, live booking, merchandising, and events.
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All Things Considered’s growth drivers and strategic expansion
ATC’s strong financial performance was fuelled by a combination of organic growth and strategic acquisitions. The company successfully integrated new managers, agents, and artist clients, broadening its market reach and enhancing its value proposition. ATC’s Integrated Artist Services strategy played a crucial role in this growth, aligning with industry trends that empower artists to maintain control over their rights. By offering a comprehensive service model that supports artists at every stage of their careers, ATC solidified its reputation as a leader in the music industry.
The company expanded its client base to approximately 860 unique clients across 1,080 business engagements, reflecting the growing demand for its diverse range of services. This approach underscores ATC’s commitment to delivering long-term strategic benefits to artists by offering tailored solutions that meet their creative and financial goals. Recognizing the competitive landscape, ATC emphasized a ‘best-in-class’ service ethos to attract and retain top talent in the industry.
Strong divisional performance
ATC experienced robust growth across all its business segments, demonstrating the broad appeal of its full-service model. Its Artist Representation division outperformed management expectations, driven by the addition of new managers and clients, as well as strategic mergers and acquisitions. Artist Representation remains a cornerstone of ATC’s business, underscoring its leadership in talent management.
And despite a year that was embodied by an ongoing cost-of-living crisis in the UK, where families were anxiously counting their pennies to pay the gas bill, touring and live events seemed to remain a popular leisure activity with consumers. ATC Live had a substantial year of growth as a result of robust live touring activity, and the Live Events and Experiences division enjoyed material revenue growth. ATC also acquired a controlling interest in Joy Entertainment this time last year as a bolt-on to ATC Live Events and Experiences and this has started to contribute to revenues.
Another recent acquisition is Sandbag, a merchandising company which ATC bought 60% of in July 2023 and which was added to ATC’s Services Division. Sandbag has already made material contributions to the company and has been just one part of ATC’s aggressive acquisition strategy to enhance its service offerings and expand its market reach. As explained above, the group acquired 50% of McKeown Asset Management (renamed Joy Entertainment) and 55% of Raw Power Management in FY24. Joy Entertainment diversified ATC’s revenue streams, entering festival management, live music promotion, and venue assets. Meanwhile, Raw Power significantly increased the number of artists under ATC’s management, including high-profile acts like Bring Me the Horizon, further cementing its influence in the music industry.
These strategic acquisitions have positioned ATC as a comprehensive music business, with twelve operating entities across three core segments. This structure aligns with key growth areas within the industry, providing ATC with unparalleled market intelligence and data-driven insights. The group’s expansive presence across the music value chain enables it to deliver innovative solutions, ensuring sustained competitive advantage.
In the last month ATC said it has agreed to acquire the remaining shares in Driift Holdings, a provider of end-to-end livestreaming solutions that it didn’t hold. This acquisition will fully integrate Driift into ATC’s Services division, further enhancing its digital offerings and reinforcing its leadership in the live streaming segment. The company also in the last year signed a cooperation agreement with China-based music company Modern Sky, and launched a transatlantic music promotion company called Circa.
Robust pipeline in events
ATC has begun the new financial year with strong momentum, supported by a robust pipeline of events and festivals. The company remains committed to scaling its business through a dual approach of organic growth and strategic acquisitions. By continuously expanding its service offerings and client base, ATC is well-positioned to capitalise on emerging opportunities in the evolving music industry.
The agency’s integrated approach to artist management, encompassing representation, live performance, online management, ticketing, and merchandising, continues to drive growth. Additionally, ATC’s data analytics capabilities enable enhanced connections between artists and fans, fostering deeper engagement and generating new revenue streams. The company remains focused on strategic acquisitions to complement its service portfolio, particularly those that introduce new services or expand its artist roster.
All Things Considered to list on London Stock Exchange?
So far, ATC has been a success story for the Aquis Exchange, showing that an innovative company, with an aggressive growth strategy in a rapidly evolving market can find a home on the alternative market. However, the indie music company may not be a fixture on Aquis for much longer, with the company indicating it is looking at a flotation on the London Stock Exchange, as a response to: “existing and potential shareholders’ requests to improve share liquidity,” and greater growth opportunities.
The past year has been transformative for All Things Considered, underscoring the success of its Integrated Artist Services strategy and strategic acquisition approach. By doubling revenue and achieving a profitability milestone, ATC has demonstrated its capacity to scale effectively while maintaining a robust financial position. The company’s innovative full-service model and market-leading position provide a strong foundation for continued growth in the dynamic music industry. With an expanding client base, strategic acquisitions, and a potential move to the London Stock Exchange, ATC is poised to capitalise on future opportunities and deliver sustainable value to its shareholders.
