VITA.L Regulatory News (VITA)

14 Jul 2006 17:59

Cellcast plc14 July 2006 Press Release 14 July 2006 Cellcast plc ("Cellcast" or "the Company") Trading Update Further to the trading update issued on 2 June 2006, UK margins have continuedto be adversely affected by the direct and indirect effect of changes to theElectronic Programming Guide ("EPG") implemented by Sky Digital in March 2006.As a result, additional spending has been incurred in marketing (directingviewers to the new channel locations), channel acquisition and increasedprogramming to fill our allocated broadcasting hours. Whilst the Board has taken decisive action, the Company's cash position has beenaffected by this additional level of spending. The Company has been indiscussion with a number of potential funders and has received an indicativeoffer of finance from a third party, through a convertible loan, subject tocontract and due diligence, and in addition, the directors have agreed inprinciple to make available a loan facility. Although the EPG situation has impacted margins, unaudited revenues from UKoperations for the first half of the current financial year are expected to beup by 17% on the same period in 2005, demonstrating consistent and growingconsumer demand for Cellcast's services. Although initial uptake from the Company's growing international operations hasbeen slower than originally anticipated in the first quarter, revenues duringthe second quarter are expected to meet budgeted forecasts and deliver in excessof £2 million in turnover for the first half. A further announcement relating to the Company's fundraising plans will be madeas soon as is practicable. - Ends - For further information:Cellcast plcAndrew Wilson, CEO Tel: +44 (0) 20 7190 0300andrew@cellcast.tv www.cellcast.tv Daniel Stewart & Company PlcLindsay Mair / Marc Young, Corporate Finance Tel: +44 (0) 20 7776 6550marc.young@danielstewart.co.uk www.danielstewart.co.uk Media enquiries:AbchurchHenry Harrison-Topham / Gareth Mead Tel: +44 (0) 20 7398 7710henry.ht@abchurch-group.com www.abchurch-group.com Notes to Editors: Cellcast plc Cellcast plc is a leading international provider of participation televisionapplications and interactive mobile content in the fast-growing multi-platformdigital entertainment sector. Headquartered in London, with associatedoperations in Paris, Beirut, Mumbai, Hong Kong and Buenos Aires, Cellcast'sapplications and programming are distributed on the Sky Digital platform in theUK and broadcast partners include Canal+ in France; STB in Ukraine; Future TV,Dubai Television and Rotana TV in the Middle East; Zee TV and Star TV in India;TVS-3 in China; Telefe in Argentina; and TeleAmazonas in Ecuador. 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 and proprietaryInteractive Platform (CIP) also facilitate delivery of content to mobile phones,the internet and broadband-delivered IPTV. This enables viewers to continueparticipating in a programme away from the TV, generating 24/7 revenueopportunities. In May 2006, Cellcast announced the launch of a range of newinteractive entertainment services on Freeview's digital terrestrial television(DTT) platform in the UK which included a breakthrough in interactive TVtechnology. Cellcast plc joined the AIM market (AIM) of the London Stock Exchange on 21September 2005. This information is provided by RNS The company news service from the London Stock Exchange