Business
Preliminary Results
Preliminary Results.
About this update from Catalyst Media Group Plc
[{"type":"text","content":"\n Catalyst Media Group PLC\n21 July 2006\n\n\n21 July 2006\n\n CATALYST MEDIA GROUP PLC\n ('CMG' or the 'Company')\n\n PRELIMINARY RESULTS\n FOR THE SEVENTEEN MONTHS ENDED 31 MARCH 2006\n\nCatalyst Media Group plc, the media company, today announces its preliminary\nresults for the 17 months ended 31 March 2006.\n\nOVERVIEW\n\nCMG is a media company that manages and distributes high quality audio-visual\ncontent using interactive digital technology. Through its associated companies,\nCMG provides services to support clients' online strategies and is a partner to\nmedia companies in the digitalisation and distribution of broadcast content. CMG\nalso holds its own rights, specialising in historic entertainment and\neducational content, generating revenues from the licensing of content globally\nto third parties, from consumer subscriptions, pay-per-view fees and from\nadvertising revenue.\n\nCMG also owns an effective 17.7% stake in Satellite Information Services\n(Holdings) Limited ('SIS'), the leading producer of sports content in the UK,\nproviding over 9,700 bookmakers with live television pictures, data display\nsystems and other broadcast services.\n\nOPERATIONAL HIGHLIGHTS\n\nThe 17 months to 31 March 2006 has been the most significant period of\ndevelopment in the history of CMG. In September 2005, we completed the\nacquisition of a 20% stake in SIS from United Business Media plc. Following\nshare repurchases by SIS in November 2005 and March 2006, our stake increased to\n22.2%. The SIS stake is held through our subsidiary company, Catalyst Media\nHoldings Ltd ('CMH'), which is owned 80% by CMG and 20% by Eureka Interactive\nFund Ltd. Consequently, our current effective interest in SIS is 17.7%.\n\nFollowing the SIS acquisition, we embarked on a strategy to de-risk and reduce\ncosts in the Group so as to maximise the benefit to shareholders of our interest\nin SIS. As part of this process, Global Media Services ('GMS'), the New York\nbased media services business, was sold to its management in October 2005. As\nconsideration, CMG will receive 15 per cent. of the gross revenues of the\nholding company of GMS from 1 January 2006 to 31 December 2010. In addition,\nBPI, the wholly owned New York based television production company, entered into\nan agreement with PowPix Productions which assumed responsibility for running\nBP...