31st Mar 2015 11:20
LONDON (Alliance News) - Catalyst Media Group PLC Tuesday posted a wider loss in the first half of its financial year, as its profit share from its key investment in betting broadcaster Satellite Information Services (Holdings) Ltd fell due to a steep rise in costs at that firm.
SIS, which covers events like horse and dog race meetings and streams the coverage live into betting shops, posted an after-tax profit of GBP1.8 million for the six months to September 30, down from GBP10.7 million a year earlier, after it closed its Outside Broadcasting services unit, and costs rose due to a series of expenses it described as one-off in nature.
SIS revenue fell to GBP106.9 million, from GBP123.2 million a year earlier due to the closure of Outside Broadcasting, and it also booked the costs of renewing the media rights for Irish racing and additional costs relating to new growth initiatives during 2014.
Catalyst Media holds a 20.54% stake in Satellite Information Services, and its profit after tax but before valuation adjustment fell to GBP331,000 in the six months to end-December, from GBP2.2 million a year earlier. It made a valuation adjustment of GBP359,000 on the stake, compared with GBP2.2 million a year earlier, resulting in a loss after tax of GBP28,655, wider than the GBP7,770 loss it recorded a year earlier.
"Although SIS's first half profits were below the previous year, it is anticipated that the second half results will show an improvement as following the closure of Outside Broadcasting, the majority of SIS's profits will now be generated in the second half of its financial year. Meanwhile SIS continues to generate significant free cashflow. Since the announcement of the final result, there has been no change in the expiration dates of the various fixed term contracts for the existing racecourse media rights," said Chairman Michael Rosenberg in a statement.
Shares in Catalyst Media are trading flat at 40.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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