VITA.L Regulatory News (VITA)

2 Jun 2006 08:16

Cellcast plc02 June 2006 Press Release 2 June 2006 Cellcast plc ("Cellcast" or "the Company") Trading Update Cellcast plc (AIM:CLTV), a global interactive digital broadcaster, todayprovides a trading update for its current financial year ending 31 December2006. The recent changes to the listings of channels by Sky Digital (altering thelocation of the Company's channels on Sky's Electronic Programme Guide 'EPG')and the delay in revenues arising from some of the Company's internationalinvestments has had a negative impact on the Company's performance. The Boardanticipates that the market forecasts for the current financial year will not bemet. Turnover for the year is expected to be below market expectations as a result ofthe delays in the revenues from the Company's international projects. However,turnover in the UK is robust and is significantly ahead of the same period lastyear but profitability has been impacted by the EPG reorganisation which hascreated scheduling inefficiencies and has made navigation difficult for theregular viewers of the Company's programmes. As a result the Board anticipates that the Company will show a loss before taxfor the current financial year. This revised expectation does not take intoaccount any possible earnings from its programmes on the Freeview platform as itis too early in the implementation process to assess what these might be. The Board has already taken positive steps to address the issue of Sky Digital'sEPG reorganisation. The Company has introduced new formats, redeployedbandwidth and has increased marketing of all its channels to help viewers locatethem on the EPG. In addition, the Company has reduced production costs as wellas operating expenses which will provide significant cost savings going forward. Despite the reduced expectation for the current year the Board remains confidentof the growing international and domestic demand for the Company's proprietaryproducts and services which is already proven in multiple markets. - 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 Tel: +44 (0) 20 7398 7700henry.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