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20 Oct 2008 07:00
UBC Media Group plc ("UBC" or The "Company")
Trading Update and Update on Sale of UBC's Commercial Division
London, 20 October 2008 - UBC Media Group plc (UBC.L), the UK's specialist radio services company, is making the following Trading Update ahead of its interim results announcement for the half year to 30 September 2008.
In line with the comments made in our trading statement on 29 August, the Company expects turnover to be 15% down on the same period in the previous year.
Difficult trading conditions continue to affect, in particular, the Commercial Division where revenues from radio advertising are down in common with the rest of the radio advertising market. Our core programme production businesses, where revenues are based largely on long term programme supply contracts, and our Interactive business, are performing broadly in line with the Company's expectations.
The deals announced last week with Global Radio and Bauer Radio mean that we are confident that we have used the current market conditions as the opportunity to build a Commercial Division which is well placed to benefit from a returning advertising market. Our commercial networks now give advertisers the opportunity to reach 67% of the UK's commercial weekly radio audience.
As previously announced, UBC has been progressing negotiations with NASDAQ-listed Global Traffic Network, Inc. ("Global") to agree the terms of a Sale and Purchase Agreement for the sale of the Commercial Division. As announced on 3 October 2008, it was intended that the Sale and Purchase Agreement would be signed on 17 October 2008 and that the transaction would complete by 15 November 2008.
Both parties have concluded that the current market conditions mean that a deal in the form originally envisaged will not be completed. Notwithstanding this, constructive discussions between the Company and Global are continuing which may or may not lead to a transaction between the companies. However, there can be no guarantee that these discussions will be successfully concluded. A further announcement will be made in due course.
For further information, please contact:
|
Simon Cole, CEO, UBC Media Group plc |
Tel: 020 7453 1602 |
|
Mark Percy or Sarah Jacobs, Seymour Pierce Ltd |
Tel: 020 7107 8000 |
Notes to editors
About UBC Media Group plc
UBC is quoted on the London Stock Exchange's AIM market. The Group is the market leader in the supply of audio content and broadcast data software to the radio industry in the UK. In addition to the entertainment, traffic & travel and national news services provided to commercial radio, the Group is the largest independent producer of radio programming for the BBC and the UK's leading supplier of digital radio scrolling text and EPG software. It is also part of the MXR Regional Multiplex consortium.
ENDS
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