23 Dec 2016 18:26
23 December 2016
TLA Worldwide plc
("TLA" or "the Group")
Trading and Business update
TLA Worldwide plc (AIM: TLA), a leading athlete representation and sports marketing business, announces further details regarding the performance of the Australian 2016 International Champions Cup ("ICC") event held in July this year and provides a trading update for full-year 2016.
As noted in TLA's interim results announced on 27 September 2016, attendance at the tournament disappointed due to the quality of first team squads who toured Australia in July this year. As a result of lower than expected ticket sales, the financial performance of the event was significantly below management's expectations.
Since the event there have been confidential discussions with the ICC rights holder. As a result of these discussions, TLA, in conjunction with its event partner TEG Pty Ltd, has amicably agreed to end its contract to promote the ICC in Australia.
In addition to the performance of the ICC event, trading in the second half of 2016 within the Group's US Sports Marketing division has been below the Board's expectations. Management are in the process of refocusing the US Sports Marketing division and a number of new hires are expected to be announced in 2017 to support future growth.
As a result of the ICC event and the underperformance within US Sports Marketing in H2 2016, trading for the current financial year is behind the Board's expectations. As a result, the Board currently believes that trading EBITDA for the year ended 31 December 2016 will be approximately 15% below its previous expectations.
Looking ahead, the Board of TLA remains positive on the outlook for 2017 with the momentum in Baseball, underpinned by a talent roster of top prospects and a strong pipeline of 2017 events which are in the process of being contracted. In addition, TLA is continuing to focus on bringing world class football events to Australia in 2017 and beyond and further announcements will be made when contracts are secured.
TLA Chairman, Bart Campbell, said: "Whilst it is disappointing that the performance of the 2016 ICC event was below expectations, we are delighted to have resolved the way forward and expect to announce our replacement premium football content for 2017 shortly."
Enquiries:
TLA Worldwide | |
Bart Campbell, Executive Chairman Michael Principe, Chief Executive Officer | +1 212 645 2141 |
Numis Securities | |
Nick Westlake and Oliver Hardy (Nomad) | +44 20 7260 1000 |
Christopher Wilkinson (Broker) | |
Luther Pendragon | |
Harry Chathli, Alexis Gore | +44 20 7618 9100 |
About TLA Worldwide
TLA Worldwide is a leading athlete representation, event management and sports marketing group quoted on AIM-LSE in London. The Group derives revenues from long-term agency relationships with many prominent U.S. and international sports stars, broadcasters and media personalities associated with major sports including the MLB, NFL, NBA, PGA tour, AFL and Olympians and Cricketers. In addition, it also provides a range of services in respect of media consultancy, sports sponsorship and event creation and ownership. With over 170 full-time personnel, TLA Worldwide serves its clients from 10 locations worldwide including its offices in London, UK; New York, Newport Beach and California, USA; Melbourne, Perth, Adelaide and Sydney, Australia. For more information, please visit www.tlaworldwide.com.