INC.L Regulatory News (INC)

3 Jul 2006 07:01

Avanti Screenmedia Group PLC03 July 2006 FOR IMMEDIATE RELEASE 3 July 2006 Avanti Screenmedia Group plc Trading Update and £25 million sale of satellite services and capacity on HYLAS Avanti Screenmedia Group plc ("Avanti") is pleased to announce that it hascompleted contracts to sell network services and satellite capacity valued at upto £25 million. Of this, £20 million represents options on three transponderswhich the clients may choose to exercise during 2007 and the £5m balance isbooked in the current financial year in respect of network design services. Thethree transponders are each designed to carry 54Mhz of capacity and therefore intotal represent approximately 10% of the capacity of HYLAS. The contracts aresigned with telecommunications capacity trading customers with interests incertain services and territories in Europe. HYLAS is the satellite which Avanti funded in 2005 with a £25m equity placingplus a £25m government grant. It will be launched in 2008 to provide broadbandand High Definition Television services, mainly on a wholesale capacity basis,but including some direct to home services. David Williams, Avanti Chief Executive said "We are delighted that our satelliteasset has already demonstrated significant revenue generating capability. Givenwe have pre-sold capacity some two and a half years before HYLAS is launched, wehave accepted significant discounts to the rate card price, but are pleased tohave already underpinned some returns from our investment. Early marketing ofHYLAS capacity suggests to us that demand is growing fast as a result ofanalogue TV switch off, the introduction of HDTV and broadband market growth.Because of the scarcity of orbital locations and radio frequency licenses webelieve this market is lightly competed. I am therefore very excited about theprospects for HYLAS." Trading Update Avanti has finished its year to 30 June 2006 well. It has a strong pipeline ofscreenmedia business which it expects to close early in the new financial yearand also experienced a surge in advertising in the last quarter, beating budgetfor the quarter by some 10%. David Williams commented on the advertising performance: "We believe that thisis partly as a result of increased market acceptance of our medium, followingsustained ground work by our excellent sales force, but also partly because weare now bundling other opportunities like experiential marketing, Bluetoothdownload to mobiles and point of sale promotions with our screen advertising todeliver a richer proposition to clients. "Avanti has also had success in selling its satellite broadband product toclients in the UK and abroad. Avanti is confident that subject to audit it willachieve a financial result for the year in line with our expectations." Ends Enquires: Avanti Screenmedia Group plc 020 7749 1600David Williams, Chief Executive Smithfield 020 7903 0676Sara MusgraveMiranda Good About Avanti Avanti is the market leading provider of 'Screenmedia' to the retail leisure andshopping mall sectors in the UK. Through its Media division, Avanti installs andruns television channels for retailers at or close to the point of sale,offering tailored solutions and a 'one stop shop', which delivers, channelstrategy, advertising sales, media distribution, research and contentproduction.. Clients use these channels to entertain and inform customers, buildbrand, promote products and generate new sources of advertising revenues. Through its Networks division, Avanti is also the UK's only broadcast and fixedbroadband satellite operator with its first satellite funded and underconstruction for launch in 2008. In August 2005 Avanti was awarded by OFCOM the right to use the geo-stationaryorbital position at 33.5degreesW with 3.6Ghz of radio spectrum to operatesatellites. Avanti will use this to provide broadband and high definitiontelevision services in Europe. Avanti expects to purchase other satellites, andto create a new competitor in the provision of direct to home satellitetelevision in the UK and elsewhere. Avanti listed on AIM, a market operated by the London Stock Exchange, on 9thJuly 2004, at an issue price of 130.0p. Avanti is included in the FTSE Mediasector and has a RIC code of ASG.L. This information is provided by RNS The company news service from the London Stock Exchange