Catalyst Media Group PLC Trading Update (6802L)
July 21 2017 - 1:00AM
UK Regulatory
TIDMCMX
RNS Number : 6802L
Catalyst Media Group PLC
21 July 2017
21 July 2017
Catalyst Media Group plc
("CMG" or the "Company")
Trading Update
Further to CMG's announcement on 23 May 2017 ("May Trading
Update"), CMG is pleased to provide the following update in respect
of Sports Information Services (Holdings) Limited ("SIS") in which
it has an approximate 20.54% interest.
In the May Trading Update, CMG set out that SIS had been
unsuccessful in acquiring two greyhound tracks and that as a
result, there was risk to SIS maintaining a viable greyhound
service and that future operating results could therefore be
impacted.
Since that time, SIS has focused on securing the future of its
greyhound business and has announced the acquisition of a number of
greyhound track media rights, including the extension of media
rights from Ladbrokes Coral's greyhound tracks, thereby ensuring
that SIS now has a significant and viable Greyhound Service over
the next five years.
Additionally SIS has confirmed that it has also secured supply
agreements for its Greyhound and Horseracing content to all of the
Major UK bookmaking groups for the next five years and, as such,
has achieved its strategic objective of sustaining its current
position in the UK Retail Licensed Betting Offices supply
market.
As a result of the above, the impact of losing the two greyhound
tracks has now been mitigated and SIS's underlying operating
results for its financial year ending 31 March 2018 are now
expected to decline by approximately 50%, as initially set out in
CMG's interim results announced on 31 March 2017, as opposed to 60%
as set out in the May Trading Update. As set out previously, the
reduction in SIS operating results for its current financial year,
reflects the transition by SIS to lower risk and lower
profitability business in the UK arising from the changes in the
media rights, particularly in respect of SIS's horse racing
rights
The results for SIS for the year ended 31 March 2017 will be
announced along with the Company's final results for the year ended
30 June 2017 in due course. However, CMG understands that SIS
traded in line with its management expectations for the year ended
31 March 2017 and that profit after tax will be similar to the
previous year. Cash generation for the year continued at higher
levels due to amortised media rights payments and following the
disposal of certain intellectual property rights and hardware by
SIS Live, SIS is expected to report that it generated cash of
approximately GBP12 million, net of the declared and paid
dividends, in the year to 31 March 2017.
Enquiries:
Catalyst Media Group Plc
Michael Rosenberg, Non-executive Chairman 07785 727 595
Melvin Lawson, Non-executive Director 020 7734 8111
Strand Hanson Limited 020 7409 3494
James Harris
Richard Tulloch
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
This information is provided by RNS
The company news service from the London Stock Exchange
END
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