OVATION MUSIC & ST COM USD0.01 (OTCMKTS:OVMS) reported that its new location in Gallatin has opened for business. This turns into the first step to accomplish strategic goals to enhance the business by seeking opportunities in two markets, Nashville and South Florida. The company had its roots in South Florida.
The expert comments
Keith De Tone, the CEO and Chairman of Ovation Music, said that this expansion and commencement of business into the Nashville market is a result of hard efforts of determined team. The company is now set to become a leading player in the Nashville music scene and also a music educator in growing market. It is working to develop new licensing and franchise opportunities in the Nashville and South Florida markets.
Ovation Music is exploring future locations that include Atlanta suburbs and metropolitan, GA, Charlotte, NC close to the research triangle, Westchester County, NY and the Washington DC metropolitan market which covers parts of both Northern Virginia and Southern Maryland. The Company intends to reach new markets that have attractive demographics as and when the opportunity arises.
The performance
Ovation Music reported on November 2, 2015 that its profit and gross revenues for the third quarter and nine month of 2015 stub period have shown growth over the previous year. The company announced that its 3Q2015 gross profit was up 14.1% and gross revenue was up 3.8% over the same period in a year earlier and gross profit was up 15.4% and Gross Revenue was up 6.8% for the nine months ending September 2015 from the comparable period in 2014.
Ovation Music’s net income declined in the 3Q2015 due to increased expansion costs that include construction expenses for the new location, marketing costs and management training. Ovation Music’s new location in Gallatin possess the potential to match revenue with existing locations and fetch better profit margins following lower fixed costs.
