Last checked at 19 Nov 2020 07:00
19 November 2020
Catalyst Media Group Plc
("CMG", "Catalyst" or the "Group")
Update regarding SIS
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 interim results for the six month period ended 31 December 2019, announced on 26 March 2020, the Company has been advised by SIS that SIS's profit before tax for the year ended 31 March 2020 will now be £0.8 million (2019: £0.7 million for continuing operations), following the requirement to make additional provisions post the period end in respect of the ongoing litigation with The Racing Partnership as detailed in the announcements of 9 October 2020. SIS's cash balance is not impacted by the provision and as at 31 March 2020 was approximately £60.1 million.
SIS's Current Trading
As announced by the Company on 17 June 2020, SIS's operations were impacted between mid-March 2020 and June 2020, following the outbreak of Covid-19. Following the cancellation of horse and greyhound racing from mid-March 2020, SIS saw the resumption of horse and greyhound racing in England from 1 June 2020 and horseracing in Ireland from 8 June 2020,with the reopening of Licenced Betting Offices in England from 15 June 2020 resulting in a return to full operations at SIS.
SIS has informed the Company that whilst trading over the summer continued to improve, since further Covid-19 restrictions started to be implemented in October and November 2020, SIS has seen the temporary closure of the majority of the retail Licensed Betting Offices which it provides services to. SIS continues to be able to provide content for its customers during this time and has sought to offset revenue shortfalls from retail with increased digital revenues. However, SIS's management have confirmed to the Company that there remains significant uncertainty as to when retail markets will reopen in full.
As a result, the Company has been informed by SIS that it expects to be lossmaking in its current financial year ending 31 March 2021, although the magnitude of SIS's loss is currently difficult to forecast given the uncertain nature of the retail market return.
Despite the impact of Covid-19, SIS has seen growth in its international and online customer base and revenues during the year, most recently launching channels for Latin American customers, and has seen the launch of its Competitive Gaming (esports) product as well as increased benefit from the acquisition of the 49's business completed earlier in the year.
SIS Dividend
Given the ongoing uncertainty in respect of SIS's current trading due to the impact of Covid-19, SIS has informed the Company that it has decided to defer any decision regarding the timing or quantum of any dividend which it may or may not choose to declare in relation to its previous year's performance until such time as SIS has greater visibility on the full impact of Covid-19 on its business.
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.