22 Jul 2009 15:03
22 July 2009
ARENA LEISURE PLC
ARENA SECURES NEW MEDIA RIGHTS CONTRACT WITH SIS WITH SIGNIFICANT UPFRONT PAYMENTS
Arena Leisure Plc ("Arena" or the "Group"), the UK's leading operator of horseracing fixtures, which owns and operates seven racecourses in the UK, is pleased to announce that it has signed an agreement with Satellite Information Services Limited ("SIS") for the provision of coverage of horse racing content from all of its seven racecourses at Doncaster, Royal Windsor, Folkestone, Lingfield Park, Southwell, Wolverhampton and Worcester into Licensed Betting Offices in the United Kingdom and Ireland (the "Agreement").
The Agreement will replace Arena's current contract with BAGS at its expiry on 31 December 2011 and has a term of five years to 31 December 2016.
Total revenues receivable by Arena under the Agreement are estimated by the Board at £106 million, significantly in excess of the revenues receivable under the existing five year contract, which are estimated by the Board at £55 million.
Arena receives an initial advanced payment from SIS of £12.5 million upon signing the Agreement.
Further advanced payments of £12.5 million and £7.0 million will be paid to Arena on 22 July 2010 and 22 July 2011, respectively, upon the provision of security by Arena. The balance of the estimated revenues will be received by Arena throughout the five year term of the Agreement on a per race basis.
Mark Elliott, Arena's Chief Executive commented:
"We are delighted to have entered into this long term media rights contract with SIS which secures a very important revenue stream for Arena and reflects the value of Arena's media rights product in the UK market. The new contract will lead to a substantial uplift in profitability in our media rights business from 2012.
"This Agreement will allow the Group to reduce its net borrowings and significantly enhance future operating cash flows."
Arena will announce its results for the six months ended 30 June 2009 on 30 July 2009.
Enquires:
Arena Leisure Plc Tel: 020 7632 2080
Mark Elliott, Chief Executive
Tony Harris, Finance Director
College Hill Tel: 020 7457 2020
Justine Warren
Matthew Smallwood
www.arenaleisureplc.com
About Satellite Information Services Limited ("SIS")
SIS is a long-established media business and a wholly-owned subsidiary of Satellite Information Services (Holdings) Ltd ("SISH"). SISH is owned by a combination of leisure and financial investors. The business focuses on TV production, broadcasting and the provision of live pictures and data via satellite from two key sites in London and Milton Keynes. It is the foremost supplier of television programming and data services to the UK and Ireland betting industry. In addition, it has long-term, high value contracts with other leading broadcasters, such as Sky and ITV, to provide live coverage of news and sports events, including Formula 1 and Rugby World Cup.