23rd May 2014 10:57
LONDON (Alliance News) - Parallel Media Group PLC Friday warned that it has lowered its internal forecasts for 2014, after the failure to find a title sponsor for a golf tournament meant the event only broke even and it said it believed that there is a level of uncertainty over some other revenue-generating events.
The company had struggled with The Championship golf tournament this year. It had been scheduled to take place in Korea, but Parallel Media moved it to Singapore when it couldn't finalise a title sponsor agreement ahead of the event dates. It was able to secure an advantageous host club agreement in Singapore, and a family of secondary sponsors in only a three week period, but the event still lacked a title sponsor.
"Although the 2014 Championship proceeded as scheduled, it took place without a title sponsor, as a result of which the event achieved a break even result rather than the profit which the company has made from the event in previous years. This has affected the expected outturn for 2014," it said in a statement.
"In addition, the board believes that there is a level of uncertainty over certain other revenue-generating events which has resulted in the company lowering its internal forecasts for 2014," it added.
Parellel media said it is in talks about alternative events and revenue streams in both golf and music and is confident they will come to fruition in the near future, contributing "material levels of profit" in its 2014 and/or 2015 accounts.
It also said the fact it had to move the gold tournament to Singapore has potentially positive implications. It said it is able to continue its existing title sponsor discussions for the Championship to return to Korea from 2015 onwards, and has a new European Tour and Asian Tour co-sanctioned event in Singapore now targeted for 2015 as well.
The 2014 Championship eventually took place at Laguna National Golf and Country Club in Singapore between May 1 and May 4 with a USD1.5 million prize fund. It was won by Chilean golfer Felipe Aguilar.
Parellel said it expects to publish its 2013 results by the end of June.
Its shares were down 5.1% at 75 pence Friday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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