26th May 2015 09:02
LONDON (Alliance News) - Shares in Catalyst Media Group PLC fell Tuesday after it said that Satellite Information Services (Holdings) Ltd, in which it has a 20.5% interest, has confirmed its relationship with Arena Racing Company is "likely to change" when its current contracts expire.
This follows Arena's decision to launch a joint venture with Racecourse Media Group to create a single production centre for organisations that want to broadcast racing. Arena owns and operates fifteen racecourses in Great Britain.
Satellite Information Services provides broadcasting services for the betting industry. SIS said it has been undertaking talks with Arena and other bookmaker customers in hopes of creating a "more efficient relationship" between Arena and bookmakers which it would facilitate, but said it was unable to agree terms that were acceptable to both.
"The significant uncertainties affecting the retail betting industry, including the Betting Right and concerns about further restrictions on Fixed Odds Betting Terminals make this a very difficult time for our customers to be entering into long-term deals for UK horseracing," SIS Chief Executive Officer Gary Smith said in a statement.
However, SIS said it remains interested in the media and data the new joint venture will create. Neither side of the joint venture have sold their rights to any bookmakers, and SIS said it "may well make good business sense" for the joint venture to sell the media and data it products to SIS to be included in the products it provides to bookmakers.
SIS's current contract obligations with Arena range between 18 and 30 months.
Shares in Catalyst Media are trading down 18% at 33.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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