News
Final Results for the year ended 31 December 2007
27 June 2008
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Highlights:
- Group revenues from continuing operations of ?12m in a challenging consumer environment with new growth driven by expanded distribution on the internet and a 400% increase in interactive 3G mobile video traffic
- Gross profit from continuing operations increased significantly from a loss of ?249,000 in 2006 to a profit of ?889,000 in 2007
- Group operating costs and expenses in respect of continuing operations reduced by 18% following rigorous cost-reduction programme
- Operations in India, Sri Lanka, Malaysia and South-East Asia acquired by new regional venture formed by Canaan Partners, with the group's 37.5% retained shareholding valued at ?2.6 million against an investment cost of ?700,000
- SUMO.tv, the group's incubator of multi-platform technology solutions and user-generated services, now focused on B2B opportunities to enable broadcasters to rapidly integrate UGC content with existing programmes
- Deployment of SUMO technology within existing operations already capturing significant new revenues opportunities arising from the growth of 3G, IPTV, enhanced broadband, video mobile and wireless broadband services
- Group received ?1.4 million cash payment from Discovery Networks in channel swap on the Sky Digital satellite television platform, resulting in a ?1.1 m profit in H1 2008
- Repaid all short-term debt under overdraft and factoring facilities and renegotiated terms of Headstart convertible term loan facilities during H1 2008
- Positive outlook in uncertain economic conditions, with the group's 3G traffic and revenue doubling since October 2007 on the back of increased distribution across Cellcast’s television output.
- Reorganisation and recapitalisation of Asian businesses into Cellcast Asia Holdings
- Injection of $5.25 million into Cellcast Asia Holdings, by leading private equity house, Canaan Partners providing post-money valuation of $13.5 million, valuing Cellcast's 37.5% share holding at $5.1 million against a cost of $1.4 million
- SUMO.tv achieves significant growth in web traffic and TV revenues, and developing co-venture opportunities accelerating the distribution timetable
Julian Paul, Chairman of Cellcast plc, commented:
“After the massive disruption in 2006 from the Sky EPG reorganisation, the company believes that the UK operations will be profitable in 2008 (before group overheads) following the substantial cost-cutting exercise undertaken over the last year. UK revenues are currently running at over ?1.1 million per month, and we anticipate that in 2008 Cellcast will revert to being the substantially UK based business that it was in 2005, with over 95% of its revenues arising in the UK.
“The company has performed surprisingly well and consistently against a backdrop where the participation TV revenues of the large TV broadcasters and the market on the whole had declined by more than 70%. We hope that 2008 will be a significantly better year than 2007.”
For further information:
| Cellcast plc | |
| Andrew Wilson, CEO | Tel: +44 (0) 20 7190 0300 |
| andrew@cellcast.tv | www.cellcast.tv |
| Media enquiries: | |
| Threadneedle Communications | |
| Graham Herring / Josh Royston | Tel: +44 (0) 20 7936 9605 |
| graham.herring@threadneedlepr.co.uk | |
| HB Corporate | |
| Edward Hutton | Tel: +44 (0) 20 7510 8600 |
About Cellcast plc
Cellcast plc (AIM: CLTV) is a leading international provider of participation television applications and interactive mobile content in the fast-growing multi-platform digital entertainment sector. Headquartered in London, with associated operations in Paris, Beirut, Mumbai, Hong Kong and Sao Paolo, Cellcast's applications and programming are distributed on the Sky Digital and Freeview platforms in the UK, and the company is partnered with broadcasters and telecom networks in Europe, the Middle East, India, South-East Asia, China, and South America. Cellcast plc joined the AIM market of the London Stock Exchange in 2005.
