Last checked at 21 Jul 2017 07:00
21 July 2017
Catalyst Media Group plc
("CMG" or the "Company")
Trading Update
Further to CMG's announcement on 23 May 2017 ("May Trading Update"), CMG is pleased to provide the following update in respect of Sports Information Services (Holdings) Limited ("SIS") in which it has an approximate 20.54% interest.
In the May Trading Update, CMG set out that SIS had been unsuccessful in acquiring two greyhound tracks and that as a result, there was risk to SIS maintaining a viable greyhound service and that future operating results could therefore be impacted.
Since that time, SIS has focused on securing the future of its greyhound business and has announced the acquisition of a number of greyhound track media rights, including the extension of media rights from Ladbrokes Coral's greyhound tracks, thereby ensuring that SIS now has a significant and viable Greyhound Service over the next five years.
Additionally SIS has confirmed that it has also secured supply agreements for its Greyhound and Horseracing content to all of the Major UK bookmaking groups for the next five years and, as such, has achieved its strategic objective of sustaining its current position in the UK Retail Licensed Betting Offices supply market.
As a result of the above, the impact of losing the two greyhound tracks has now been mitigated and SIS's underlying operating results for its financial year ending 31 March 2018 are now expected to decline by approximately 50%, as initially set out in CMG's interim results announced on 31 March 2017, as opposed to 60% as set out in the May Trading Update. As set out previously, the reduction in SIS operating results for its current financial year, reflects the transition by SIS to lower risk and lower profitability business in the UK arising from the changes in the media rights, particularly in respect of SIS's horse racing rights
The results for SIS for the year ended 31 March 2017 will be announced along with the Company's final results for the year ended 30 June 2017 in due course. However, CMG understands that SIS traded in line with its management expectations for the year ended 31 March 2017 and that profit after tax will be similar to the previous year. Cash generation for the year continued at higher levels due to amortised media rights payments and following the disposal of certain intellectual property rights and hardware by SIS Live, SIS is expected to report that it generated cash of approximately £12 million, net of the declared and paid dividends, in the year to 31 March 2017.
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 ("MAR").