Cellcast News
Trading Update
14th July 2006
Further to the trading update issued on 2 June 2006, UK margins have continued to be adversely affected by the direct and indirect effect of changes to the Electronic Programming Guide (“EPG”) implemented by Sky Digital in March 2006. As a result, additional spending has been incurred in marketing (directing viewers to the new channel locations), channel acquisition and increased programming to fill our allocated broadcasting hours.
Whilst the Board has taken decisive action, the Company's cash position has been affected by this additional level of spending. The Company has been in discussion with a number of potential funders and has received an indicative offer of finance from a third party, through a convertible loan, subject to contract and due diligence, and in addition, the directors have agreed in principle to make available a loan facility.
Although the EPG situation has impacted margins, unaudited revenues from UK operations for the first half of the current financial year are expected to be up by 17% on the same period in 2005, demonstrating consistent and growing consumer demand for Cellcast’s services.
Although initial uptake from the Company's growing international operations has been slower than originally anticipated in the first quarter, revenues during the second quarter are expected to meet budgeted forecasts and deliver in excess of £2 million in turnover for the first half.
A further announcement relating to the Company's fundraising plans will be made as soon as is practicable.
For further information:
Cellcast plc |
|
Andrew Wilson, CEO |
Tel: +44 (0) 20 7190 0300 |
| andrew@cellcast.tv | www.cellcast.com |
Daniel Stewart & Company Plc |
|
Lindsay Mair / Marc Young, Corporate Finance |
Tel: +44 (0) 20 7776 6550 |
Media enquiries:
Abchurch |
|
Henry Harrison-Topham |
Tel: +44 (0) 20 7398 7700 |
Notes to Editors:
Cellcast plc
Cellcast plc 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 Buenos Aires, Cellcast's applications and programming are distributed on the Sky Digital platform in the UK and broadcast partners include Canal+ in France; STB in Ukraine; Future TV, Dubai Television and Rotana TV in the Middle East; Zee TV and Star TV in India; TVS-3 in China; Telefe in Argentina; and TeleAmazonas in Ecuador
Cellcast's revenues streams are independent of both advertising and subscription fees. With a network of revenue sharing agreements with telecommunications carriers and aggregators across five continents, Cellcast receives a share of the call revenue every time a consumer uses a mobile or fixed-line phone to participate in its interactive entertainment, revenue which is retained or shared with its broadcast partners. Cellcast's programme formats and proprietary Interactive Platform (CIP) also facilitate delivery of content to mobile phones, the internet and broadband-delivered IPTV. This enables viewers to continue participating in a programme away from the TV, generating 24/7 revenue opportunities. In May 2006, Cellcast announced the launch of a range of new interactive entertainment services on Freeview's digital terrestrial television (DTT) platform in the UK which included a breakthrough in interactive TV technology.
Cellcast plc joined the AIM market (AIM) of the London Stock Exchange on 21 September 2005.