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14 May 2015 07:00
Chime Communications PLC
("Chime" or the "Company")
Annual General Meeting Trading Update
Chime Communications plc, the international communications and sports marketing group, announces its Annual General Meeting Trading Update for the first four months of 2015.
Summary
2015 has started slowly in sports marketing with further delays in two major international contract negotiations. All other divisions are trading in line with expectations. Consequently, the full year results will be below expectations.
Long term prospects for the Sport and Entertainment division remain very promising following the initial restructuring led by Lord Coe in March which saw Zak Brown take over as CEO.
Even without any income from the two major delayed contracts we still anticipate double digit operating profit growth for 2015, with the rate of growth improving in 2016 through strong organic growth in our Sport and Entertainment division.
Sport and Entertainment
Major sporting events in which we are involved in 2015 include The Rugby World Cup in the UK, The European Games in Baku and the Ashes Series in England. We are expecting good growth from this division in 2015 and beyond, although the phasing of income in 2015 around major events will mean the second half performance will be better than the first half.
We have confidence in our growth targets for 2016 and beyond because of the restructuring of our management, the continuing growth prospects of the sports market and our improving list of client opportunities including around the 2016 Olympic Games.
Advertising and Marketing Services
This division has continued its strong performance in 2014 into 2015 with good new business wins. We are continuing to look at expansion opportunities by both increasing the services we can provide to clients in the UK and expanding our international reach.
Healthcare
This division has had a good start to 2015 and is expected to continue to grow. As in previous years, the second half of the year will be better than the first half.
Insight and Engagement
2015 has started well with income ahead of last year and margin still well ahead of the marketplace. We have purchased part of the minority shareholding in our digital research business, Watermelon, in an earnings enhancing transaction. We now own 90% of this business.
Board Changes
As previously announced, Martin Glenn has left the Board following his appointment as Chief Executive of the Football Association. We expect to make an announcement about the appointment of a new Director in due course.
Christopher Satterthwaite, Chief Executive of Chime Communications, said:
"We have had a slow start to the year owing to delays in global contract negotiations in our Sport and Entertainment division. However we continue to make good progress in our plan of becoming a world leading international communications and sports marketing group, able to offer a unique combination of services to global clients seeking to reach worldwide audiences, as seen with the recent launch of our major league soccer business in the US."
Enquiries
Christopher Satterthwaite, Chief Executive Chime Communications
| 020 7096 5888 |
Mark Smith, Chief Operating Officer and Finance Director Chime Communications
| 020 7096 5888 |
James Henderson / Victoria Geoghegan / Elizabeth Snow Bell Pottinger
| 020 3772 2562 |
Notes to Editors
Chime is an international communications and sports marketing group, comprising CSM in sport and entertainment; the VCCP Partnership in advertising and marketing services; OPEN Health in healthcare communications; and CIE, our insight and engagement division.
For more information, please go to www.chimeplc.com
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