8 Jul 2010 07:00
7 July 2010
UBC Media Group plc
Digital radio transmission early release
UBC Media Group (AIM: UBC, 'UBC' or 'the Group'), the multimedia content and services company, has settled an early release with Bauer for its multiplex spectrum contracts which run until 2013. This will result in an increase in the current year's Net Profit in excess of current market expectations.
UBC will write back £0.5m as released provision to the profit and loss account and will make a one-off cash payment of £2.2m to Bauer, which the Group has previously provided for, in order to release it from its commitment, which would have cost UBC in total £3.1m. UBC will still be able to use the digital spectrum should it wish to and is able to assign the spectrum to third parties at no cost, however it will pay no more fees to Bauer.
The settlement of the Bauer multiplex contract follows the recent sale of UBC's 7.5% stake in the regional multiplex operator MXR to the Guardian Media Group announced on 21 June 2010, which enabled UBC to release circa £0.4m of provision against spectrum contracts on those multiplexes. Collectively these agreements increase the Group's net profits and strengthen the balance sheet by £1m.
Simon Cole, Chief Executive, said:
"This settlement with Bauer finally clears UBC of all outstanding legacy issues and liabilities associated with digital radio spectrum. We are now able to focus management effort 100% on the production of content and the development of interactive software. The interplay between content and technology are where we see the real opportunities of the future."
"Our strong balance sheet is in contrast to much of the sector and should create opportunity for us. Our focus is on continuing to grow Gross Margin and EBITDA and continuing our progressive dividend policy"
Enquiries:
| UBC Media Group | 020 7453 1600 |
| Simon Cole, Chief Executive |
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| John Falcon, Finance Director |
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| Seymour Pierce | 020 7107 8000 |
| Mark Percy, Corporate Finance |
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| David Banks, Corporate Broking |
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| College Hill | 020 7457 2020 |
| Adrian Duffield/Carl Franklin/Rozi Morris |
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About UBC Media (www.ubcmedia.com)
UBC Media is a business to business provider of multimedia content and interactive software. The Group provides content expertise across a wide range of platforms including commissioned radio programmes for networks such as the BBC, advertiser funded audio and video, media sponsorship and mobile advertising, along with interactive software for radio broadcasters and apps for mobile devices. It is the UK's leading independent producer of radio programming. UBC consists of five operating divisions: Unique (radio production), Above the Title (radio and other Audio production), Smooth Operations (radio production), Lynx Content (marketing through content) and Unique Interactive (interactive software).UBC is in a strong position to serve the rapidly growing and converging multi-platform media and wireless markets in ways that have potential to generate substantial earnings over the coming years. The Group's business model already generates highly visible revenues, such as long term radio commissions and monthly software fees. UBC Media is listed on AIM (AIM: UBC), and is based in London, UK.