2nd Sep 2014 06:53
LONDON (Alliance News) - DCD Media PLC Tuesday said it has agreed terms to sell its Glasgow-based television production business Matchlight to the unit's management, although the completion of the deal is still subject to a number of conditions it didn't set out.
"In the event that the sale concludes, the board expects to maintain a continued strong relationship with Matchlight given DCD Rights will retain a long-term option over Matchlight's distribution rights," it said in a short statement.
DCD said it doesn't consider Matchlight to be material to the company on an ongoing basis.
DCD has seen its shares slide in recent months. It had to issue a profit warning in September last year after WE: Women's Entertainment LLC said it wouldn't commission an 11th series of US reality television programme Bridezillas, which had been a key revenue earner in recent years.
In June this year it said it would switch its focus to growing its distribution rights business, although it also said production would remain a priority.
Last week, the company said said it had traded in line with its own expectations in the first half of 2014, and while trading is still difficult in its television production units, its rights division was growing by winning new distribution contracts at home and overseas. The gross value of the acquisitions so far this year is up 30% on 2013, it said.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
DCD.L