Associate company results

4 February 2010

Associate company results

Cellcast Asia posts 400% revenue growth and record profits

Strong endorsement of Cellcast plc's proprietary technology and business model

Cellcast plc (AIM: CLTV), the interactive digital broadcaster, today announces that Cellcast Asia (its associate company of which it owns 37.5%) delivered revenues of US$6,409,000 in the second half of 2009, a 400% increase on the same period in 2008. Cellcast Asia anticipates that it will record second half profits of just over US$2,000,000.

Commenting on the interim results, Cellcast Asia CEO, Pankaj Thakar said: "Our rapid growth in 2009 is the result of several factors. The mobile market in India is delivering extraordinary opportunities for resourceful companies. We have fine-tuned existing programming, expanded distribution and launched new formats that have succeeded beyond expectations. We are now seeing the benefits of the expertise and focussed understanding of consumer needs that we have built up over the last few years".

The exponential growth of the Indian mobile market continues, with a record 19 million new subscribers in the month of December 2009 alone. India now boasts 525 million mobile subscribers - up 51.4% from December 2008, with continued room for growth as penetration stands at just 40%. Pankaj Thakar said: "Whilst our costs are fixed, more and more people are able to interact with our programmes every month, significantly increasing response rates and driving margin growth".

Pankaj Thakar continued: "Cellcast Asia is benefiting from the strategic support of both mobile operators and broadcasters. Network operators see the services as a way to increase ARPU in an increasingly competitive environment, with traditional voice and data yields declining as a result of market expansion and price competition. For broadcasters, who face increasing competition in a tough competitive advertising environment, our services frequently generate yields that exceed those available from spot advertising".

Cellcast Asia forecasts continued growth through 2010, with increased distribution on the national DTH platform and greater penetration in regional markets as Hindi production expands into local languages such as Urdu and Tamil.

Andrew Wilson, CEO of Cellcast plc ,commented: "Coming on top of the Red Herring award that named Cellcast Asia as one of the 100 best private technology companies in the world, the 2009 performance is a further endorsement of Cellcast plc's business model, its proprietary technology, and the group's proven ability to exploit significant participation TV revenue opportunities in the fast growing Asian market."

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About Cellcast Asia

Cellcast Asia is the leading participation TV broadcaster in the Indian subcontinent. The company was an early entrant and innovator in the interactive TV services business and has developed unique multi-platform expertise which spans format inception, development, production and broadcasting in combination with a billing platform built on a unique network of technical and commercial relationships with mobile and fixed line operators across the region.

About Red Herring

Red Herring (www.redherring.com) is a global media company which unites the world's best high technology innovators, venture investors and business decision makers in a variety of forums: a leading innovation magazine, an online daily technology news service, technology newsletters and major events for technology leaders around the globe. Red Herring provides an insider's access to the global innovation economy, featuring unparalleled insights on the emerging technologies driving the economy.

About Cellcast PLC

Cellcast plc (AIM: CLTV) provides interactive mobile content for today's dynamic multi-platform digital entertainment sector. Cellcast's services enable broadcasters, content developers, media ventures, 3G services and mobile networks to profit from the convergence of television, IT and telecommunications. The company develops, aggregates, and distributes a portfolio of mobile and participation TV applications and produces live interactive pay-to-play programming matching the needs of broadcasters. The company distributes its programmes on various channels and platforms, including BSKYB, Freeview and Freesat in the United Kingdom, and across the Middle East and India through its associate companies Cellcast ME and Cellcast Asia Holdings.