VITA.L Regulatory News (VITA)

20 Feb 2007 07:03

Cellcast plc20 February 2007 Press Release 20 February 2007 Cellcast plc ("Cellcast" or "the Company") Pre-Close Statement The Board of Cellcast plc (AIM:CLTV), the global interactive digitalbroadcaster, is pleased to provide a trading update prior to entering its closeperiod ahead of the preliminary announcement of its results for the year ended31 December 2006. The Company expects to make the preliminary announcement inthe last week of April 2007. For the year as a whole, and on the basis of the unaudited management accounts,the Directors expect that the consolidated loss at the EBITDA level will bearound £2.9 million and that the consolidated loss before taxation will be inthe region of £3.5 million. Last November, the Directors announced that they did not expect the Company's UKbusiness to return to profitability during the second half of 2006, and that thefull benefits of the actions taken to reduce the fixed costs of the UK operationwould not be recognised until the first half of 2007. Considerable progress hasnow been made towards achieving profitability at the operating level, such thatthe Group broke even at the operating level in December 2006, based on unauditedmanagement accounts. During the final quarter of 2006 gross margins in the UKalso recovered to levels near to those achieved at the beginning of the yearprior to the impact of the SKY EPG restructuring. Underlying this performance is the continued strong growth in turnover, similarin percentage terms to that reported in the interim results statement whererevenue increased by more than half again. This reflects the continuedexpansion of the Company's international operations which has furthergeographically diversified the Group's revenues. International operations as apercentage of total Group revenues increased from 4% in January 2006 to over 65%by December 2006. Margins in international operations also improveddramatically in the period from January to December 2006, which, even allowingfor the cost of ongoing investment into key new markets, resulted in the Companyachieving overall profitability for international operations in December 2006.Of particular note were Cellcast's new operations in South America, whichachieved net margins in excess of 20% in December 2006. The Board believes the results of the strategic developments and cost reductionplans instigated during 2006 will continue to become apparent during the firsthalf of 2007. The Company is confident it has successfully addressed the issuesof its UK operations and turned these around whilst simultaneously pursuing theplanned international distribution of its technology and associatedapplications. The Board considers that the continuing growth of theseoperations validates Cellcast's syndication strategy and demonstrates theinternational demand for the Company's products and services. - Ends - For further information: Cellcast plcAndrew Wilson, CEO Tel: +44 (0) 20 7190 0300andrew@cellcast.tv www.cellcast.tv HB CorporateEdward Hutton Tel: +44 (0) 20 7510 8600e.hutton@hbcorporate.co.uk Rachel Kaner.kane@hbcorporate.co.uk www.hbcorporate.co.uk Media enquiries:AbchurchHenry Harrison-Topham / Gareth Mead Tel: +44 (0) 20 7398 7700gareth.mead@abchurch-group.com www.abchurch-group.com Notes to Editors: Cellcast plc Cellcast plc (AIM:CLTV) is a leading international provider of participationtelevision applications and interactive mobile content in the fast-growingmulti-platform digital entertainment sector. Headquartered in London, withassociated operations in Paris, Beirut, Mumbai, Miami, Hong Kong and Sao Paolo,Cellcast's applications and programming are distributed on the Sky Digital andFreeview platforms in the UK and broadcast partners include Canal+ in France;Future TV, Dubai Television and Rotana TV in the Middle East; Zee TV, STAR TVand Sahara TV in India; TVS-3 in China; TV3 in Malaysia; and Rede TV, TV Gazettaand TV Banderantes in Brazil. Cellcast's revenues streams are independent of both advertising and subscriptionfees. With a network of revenue sharing agreements with telecommunicationscarriers and aggregators across five continents, Cellcast receives a share ofthe call revenue every time a consumer uses a mobile or fixed-line phone toparticipate in its interactive entertainment, revenue which is retained orshared with its broadcast partners. Cellcast's programme formats andproprietary Interactive Platform (CIP) also facilitate delivery of content tomobile phones, the internet and broadband-delivered IPTV. This enables viewersto continue participating in a programme away from the TV, generating 24/7revenue opportunities. Cellcast plc joined the AIM market of the London Stock Exchange on 21 September2005. This information is provided by RNS The company news service from the London Stock Exchange