Catalyst Media Regulatory News (CMX)

27 March 2018

Catalyst Media Group Plc

("CMG", "Catalyst" or the "Group")

Interim Results for Six Months Ended 31 December 2017

Catalyst Media Group Plc announces its interim results for the six months ended 31 December 2017.

CMG is a 20.54% shareholder in Sports Information Services (Holdings) Ltd ("SIS") and the results include its share in the profits of SIS as an equity accounted associate.

Financial Highlights for the six months to 31 December 2017

· CMG profit after taxation and before adjustment to investment valuation of £0.34 million (2016: £1.03 million)

· Valuation adjustment of £nil (2016: £1.06 million) resulting in a profit after taxation of £339,898 (2016: loss of £32,526)

· Earnings per share (before valuation adjustment) 1.62p (2016: 4.44p)

· Earnings per share (after valuation adjustment) 1.62p (2016: loss of 0.14p)

· Net asset value per share of 122.5p (2016: 106.4p)

· SIS revenues for six months to 30 September 2017 £100.9 million (2016: £110.1 million)

· SIS EBITDA for six months to 30 September 2017 of £11.1 million (2016: £18.3 million)

· SIS profit after tax on ordinary activities for the six months to 30 September 2017 of £1.8 million (2016: £5.2 million)

· SIS declared a dividend of £15.0 million in October 2017, £3.1 million received by CMG

Michael Rosenberg, Chairman of Catalyst commented:

"With SIS's domestic retail position secured with contracts signed for between three to five years with 99% of the Licensed Betting Offices, albeit at lower margins from 2018, SIS has focused on utilising its industry expertise and content in other markets including International Retail and Online. The recent announcement by SIS of a deepening partnership with Racecourse Media Group on International and online rights, demonstrates the progress SIS is making in developing its business outside of domestic retail.

We understand that SIS continues to perform in line with SIS's management expectations and expects operating profits and profit before tax for the year to 31 March 2018 to be in line with previous guidance and that SIS continues to expect to announce a further dividend after the end of its current financial year. As and when received by the Company, the Company will consider the optimum method of distributing such funds, including the cash currently held by the Company, to shareholders."

Enquiries:

Catalyst Media Group Plc

Michael Rosenberg, Non-executive Chairman 07785 727 595

Melvin Lawson, Non-executive Director 020 7734 8111

Strand Hanson Limited 020 7409 3494

James Harris

Richard Tulloch

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.

Chairman's Statement

For the six month period ended 31 December 2017 the Group has generated a net profit after taxation before adjustment to investment valuation of £0.34 million (2016: £1.03 million).

Net assets as at 31 December 2017 were £25.8 million (30 June 2017: £25.5 million). Net cash as at 31 December 2017 was £4.5 million (2016: £1.5 million). The net assets per share as at 31 December 2017 were 122.5p (2016: 106.4p).

The Group's main asset remains its 20.54% stake in SIS and, in October 2017, the Company received a dividend of £3.1 million from SIS. Accordingly, the value of the investment in SIS has been reduced to £21.3 million after taking account of the dividend receipt.

CMG equity accounts for its share in the profits of SIS, which were £1.8 million after tax for the six month period to 30 September 2017 (2016: £5.2 million). Total revenues of SIS for the period were £100.9 million (2016: £110.1 million) of which £92.5 million (2016: £101.5 million) were derived from the business of providing integrated television and data services to Licensed Betting Offices in the UK, Ireland and overseas and a further £8.4 million (2016: £8.6 million) was contributed by SIS Live services, which provides satellite news gathering and associated transmission services to its customers. Operating profits of SIS for the period decreased to £2.1 million, compared to £6.3 million in the comparable period for 2016, as a result of some racecourse rights ending and investment in non-UK retail areas of the business.

SIS BETTING

SIS is a leading supplier of data, pictures and pricing across a range of sports enabling more than 100,000 events on which to bet per year.

Given the lower margins of new media contracts, SIS is focused on utilising its skill set and experience in delivering appealing linear betting opportunities to the UK retail market into both online and international retail markets. The focus of the strategy is to secure the long-term future of SIS and to reduce its reliance on the UK retail market.

Domestic Retail (UK and Ireland)

SIS has agreed new UK retail rights deals with RMG (Racecourse Media Group) for UK premium horseracing and Horse Racing Ireland and the Association of Irish Racecourses for all Irish horseracing, which together with the series of greyhound racing rights from eight British tracks, provides SIS with comprehensive core content for its UK and Irish retail service through to 2023.

The British greyhound service went live on 1 January 2018 and joined Irish horseracing and all weather horseracing from Chelmsford City as key elements of its service to the UK and Irish retail markets, with 99% of Licensed Betting Offices signed up to long term deals to take the service. RMG's UK horseracing will become part of this service from 1 April 2018.

SIS announced the retirement of its ISIS and TDC text display systems earlier in the year, replacing the systems with a state of the art display system from a strategic partner, enhancing the service to customers. This will be complete by the end of the financial year delivering some cost savings.

International Retail

In January 2018, SIS announced an expansion of the partnership with RMG to jointly licence international rights for both RMG and SIS horseracing content. SIS will lead sales of the joint product in all non-Tote exclusive territories combining the UK and Irish horseracing content with SIS's British greyhound content to maximise international sales. This will replace the current arrangement with GBI Racing which expires on 31 December 2018.

SIS has extended many of its current arrangements with customers for a further five years and the new arrangement with RMG will enable long term deals to be signed with new customers

Online

The launch of the British greyhound service has proved to be a significant catalyst with online operators signing with SIS for various digital services such as streaming platform capabilities, greyhound and horseracing content, pricing and data. This area is expected to see further growth in the year to March 2019, as more operators integrate and the available content expands. The recent agreement with RMG to include international rights, provides SIS with additional online content and SIS expects further content deals to be signed in the coming year.

SIS LIVE

SIS Live provides satellite uplinks, satellite news gathering and satellite internet services. It also is engaged in media fibre, teleports, distribution and satellite capacity provision. It is becoming the connectivity provider of choice for critical media content, providing significant media connectivity for football, golf, rugby and motor racing events.

Its fibre network connects its headquarters with resilient connectivity into key broadcast locations including major UK broadcasters, sports venues, network operators and studio facilities. Signals can be routed directly from SIS's teleport sites or to national and international customers via a combination of satellite and fibre paths.

As announced previously, SIS's management continue to see a prosperous future for SIS Live, though also recognise there may be a strategic benefit for SIS Live in alternative ownership. As a result, SIS has received approaches for SIS Live which are being considered and could result in a sale in the near future, with any net proceeds from such a sale expected to be returned to SIS shareholders.

INDIA

SIS continues to progress the outstanding amounts due and the associated tax liabilities relating to the India Commonwealth Games in 2010. Progress has been made in recent months, however SIS expects resolution of this issue to continue to be delayed with the timing of the outcome remaining uncertain.

OUTLOOK

The Company has been advised by SIS that its trading is in line with SIS's management expectations and that, as previously announced, SIS is expected to achieve an operating profit, before non-trading costs, for the full year to 31 March 2018 of approximately £10.0 million. One-off costs associated with non-trading activities, including costs associated with litigation and SIS's defined benefit pension scheme, will though impact profit before tax for the full year to 31 March 2018 by approximately £4.0 million. Cash balances at SIS as at 31 March 2018 are expected to remain in line with the prior year at approximately £73 million, following the payment of a dividend of £15 million in October 2017.

SIS's Board continues to expect to announce a further dividend after the end of its current financial year to 31 March 2018. Should SIS make a further dividend distribution and on receipt of such funds, it is the current intention of the CMG Board to consider the optimum method of distributing the majority of such funds, including the cash currently held within the Company, to shareholders. The Company will make further announcements in this regard as appropriate.

Consolidated interim statement of comprehensive income

Consolidated interim statement of financial position

Consolidated interim cash flow statement

Consolidated interim statement of changes in equity

Notes to the interim financial statements

1. Corporate information

The Company is a company incorporated in England and Wales and quoted on the AIM market of the London Stock Exchange plc.

2. Basis of preparation

These unaudited consolidated interim financial statements cover the six month period from 1 July 2017 to 31 December 2017 including the financial results of Sports Information Services (Holdings) Limited ("SIS") for the six month period to 30 September 2017.

These consolidated interim financial statements of the Company and its subsidiaries (the "Group") for the six months ended 31 December 2017 have been prepared in accordance with International Financial Reporting Standards (IFRSs and IFRIC interpretations) as adopted by the European Union and also in accordance with the Companies Act 2006.

The accounting policies adopted for the preparation of this unaudited interim statement are consistent with the accounting policies adopted in the Group's financial statements for the year ended 30 June 2017 and will remain so for the year ending 30 June 2018.

The financial information set out above does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. Statutory accounts for the year ended 30 June 2017, on which the report of the auditors was unqualified and did not contain a statement under section 498 of the Companies Act 2006, have been filed with the Registrar of Companies.

New financial reporting requirements

Standards, interpretations and amendments to published standards not yet effective

At the date of authorisation of these consolidated financial statements, the IASB and IFRIC have issued the following standards and interpretations which are effective for annual accounting periods beginning on or after the stated effective date. These standards and interpretations are not effective for and have not been applied in the preparation of these consolidated financial statements:

§ IFRS 9: Financial Instruments (effective as of 1 January 2018)

§ IFRS 15: Revenue from Contracts with Customers (effective as of 1 January 2018)

§ IFRS 16: Leases (effective as of 1 January 2019)

The Directors anticipate that the adoption of these standards and interpretations will not have a material impact on the Group's financial statements in the period of initial adoption.

3. Investment in associate

The Group's interest in its associate SIS, a company incorporated in England and Wales, is held by Alternateport Limited ("Alternateport"). Alternateport holds an investment of 20.54% in the equity share capital of SIS and is entitled to appoint a director and alternate director to the SIS board. This right has been exercised since acquisition. Alternateport is a wholly owned subsidiary of Catalyst Media Holdings Limited, a wholly-owned subsidiary of the Company. The intangible assets represent the value attributable to the ongoing business activities of SIS, which are subject to an annual valuation adjustment.

The Board has reviewed its valuation of the investment in SIS as at 31 December 2017 and has, in line with the Group's accounting policies, concluded that the investment should be held at a value of £21,266,027.

\* The period covered by the associate's accounts is the six months to 30 September 2017. The revenues have been stated excluding internal revenues.

4. Earnings/(loss) per share

The calculation of the basic earnings per ordinary share of 10p each in the capital of the Company ("Share") is based upon the following: