25th Sep 2014 10:24
LONDON (Alliance News) - Cellcast PLC Thursday said it swung to a pretax profit in the first-half from a loss the year before despite seeing revenues fall as demand for its products continued to decline, as it cut down costs and saw a one off benefit boost its performance.
Cellcast is a broadcasting company which operates chat channels and adult interactive channels.
Cellcast posted a pretax profit of GBP2.0 million, swung from a pretax loss of GBP914,824, as revenue rose to GBP9.3 million up from GBP8.3 million, as cost of sales fell. Its performance also benefited from a one off payment of GBP3.0 million from the agreement to terminate its exclusive rights to manage Freeview channel Movie Mix early.
The company said it had continued to see a decline in demand for its core products and services in the UK, although this had been offset by the restructuring of its costs including moving its operations to Milton Keynes.
Cellcast said that it has reduced its costs "significantly" over the last two years, and is continually looking at ways to reduce costs further, specifically through renegotiating bandwidth commitments.
As its traditional UK market continues to decline, it is investing in new genres of multi-platform TV, primarily focused on gambling and gaming. It expects these new businesses to begin operations in the first quarter of 2015.
Shares in Cellcast were trading up 18% at 1.06 pence per share Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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