Last checked at 28 Oct 2019 07:00
28 October 2019
Catalyst Media Group plc
("CMG" or the "Company")
Update regarding SIS
Dividend by SIS and proposed dividend by CMG
The Company provides the following update in respect of Sports Information Services (Holdings) Limited ("SIS") in which CMG has an approximate 20.54% interest.
Update regarding SIS
Further to the update provided in the Company's interims for the six month period ended 31 December 2018, announced on 27 March 2019, the Company has been advised by SIS that SIS's profit before tax for the year ended 31 March 2019, including operating profits for SIS Live and excluding profit on the sale of SIS Live, will now be £2.9 million, following the requirement to make additional provisions post the period end for the ongoing litigation with The Racing Partnership as detailed in the announcements of 8 May and 10 July 2019. SIS's cash balance is not impacted by the provision and as at 31 March 2019 was approximately £70 million.
SIS's Current Trading
As previously announced, the Department for Digital, Culture, Media and Sport concluded the Triennial Review in 2018, announcing a reduction in Fixed Odds Betting Terminals ("FOBT") maximum stakes from £100 to £2. In the period since the reduction came in to force in April 2019, SIS has seen a reduction in the number of UK Licensed Betting Offices from approximately 9,250 to approximately 8,250, which is slightly lower than SIS's management expected.
Six months on from the FOBT change, SIS's performance is ahead of SIS management's expectations and the investment and progress in Digital and International markets has continued, with recent announcements by SIS including the launch of a World Greyhound Tote product launched in the US market, expansion into South America both for retail and online customers, and a number of new retail and online customers in Europe for its Watch and Bet 24/7 channels.
Whilst the core UK and Irish Retail market declines at predicted rates, the business sees its long-term future aligned with the international and multichannel operations of major betting companies. The focus on both International and Online and the move to a new target operating model is also securing significant cost savings across SIS.
Dividend by SIS and proposed dividend by CMG
SIS has today declared a dividend of £5.0 million. Upon receipt of its share of the SIS dividend, expected to be approximately £1.0 million, CMG will have approximately £1.37 million in cash and the Board of CMG intends to distribute the majority of its resulting funds to its shareholders via a dividend of approximately £1.05 million, equating to 5.0 pence per share.
A further announcement will be made upon receipt of the SIS dividend, confirming the final details of CMG's proposed dividend.
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.