14th Oct 2008 07:00
UBC Media ("UBC" or The "Company")
Contract Wins
Global Radio adds GCap stations to Network Drive, Bauer signs new two year agreement with UBC Commercial Division.
London, April 15, 2008 - Unique Broadcasting, the wholly owned Commercial Division of UBC Media Group (LN: UBC), today announces that it has signed a 2 year deal with Global Radio to supply traffic and travel bulletins for the entire Global Radio group. This adds to UBC's networks the stations formerly owned by GCap Media, acquired by Global Radio in June this year.
The traffic data will be provided to UBC under an existing contract by Trafficlink, the UK's leading provider of real-time traffic and travel information.
The deal sees all of Global Radio's stations, and significantly for the very first time London's Capital Radio join Unique's "Network Drive" syndication network. Beginning on 17th November, the deal is for two years and means UBC will now supply traffic and travel news to all of the 71 stations owned by Global Radio.
This is a significant development for UBC, as it will increase impact delivery for the company's advertisers by 32 per cent; rising from 141.2 million to 185.8 million impacts. The weekly adult reach across the Network Drive package will also increase by 5million, or 31 %, to 21 million, which equates to 67% of the total weekly audience delivery of the whole of commercial radio.
Since pioneering programme syndication as a means of delivering high quality content to commercial radio in exchange for advertising inventory, Unique has grown to become the largest independent network airtime sales point to media agencies via its syndicated networks. UBC supplies syndicated services to over 250 commercial radio stations within the UK.
In a separate but related deal Bauer, on behalf of its 35 UK radio stations, have also signed a two year extension of their current deal with Unique for their supply of traffic and travel, and inclusion within the "Network Drive" syndication network.
UBC is currently progressing negotiations with NASDAQ-listed Global Traffic Network, Inc. ("GTN") to agree the terms of a Sale and Purchase Agreement for the sale of the Commercial Division. It is intended that an initial £11 million will be paid on completion of the transaction, with provisions for an earn-out which has the potential to deliver additional payments of up to £5.5 million depending upon the Commercial Division achieving certain turnover targets in the 12 months following its sale.
Simon Cole, CEO of UBC Commented:
"We have had a successful working relationship with Global Radio since they purchased Chrysalis Radio last year and are really pleased to be moving it to the next level. Global's acquisition of GCap, and it's subsequent decision to extend our syndication deal for Traffic and Travel is a very important step for us. Although the advertising market remains difficult, the additional commercial inventory represented by this deal should benefit us when the market returns.
The signing of the entire Global Radio Network and the new deal with Bauer mean that our commercial business is enhanced and secured for the next two years. We still believe, however, that the proposed transaction with GTN represents an opportunity for the business to be scaled globally and returns value for our shareholders".
For further information, please contact:
|
Simon Cole, CEO, UBC Media Group plc |
Tel: 020 7453 1602 |
|
Mark Percy, Sarah Jacobs Seymour Pierce Limited |
Tel: 020 7107 8008 |
Notes to editors
About UBC Media Group plc
UBC is quoted on the London Stock Exchange's AIM market. The Group is the market leader in the supply of audio content and broadcast data software to the radio industry in the UK. In addition to the entertainment, traffic & travel and national news services provided to commercial radio, the Group is the largest independent producer of radio programming for the BBC and the UK's leading supplier of digital radio scrolling text and EPG software. It is also part of the MXR Regional Multiplex consortium.
About Trafficlink
Trafficlink is the UK's leading provider of real-time traffic and travel information to the BBC, UK commercial radio, Teletext, the AA, ITV, Government and the UK telematics industry.
Operating from seven regional offices across the UK, Trafficlink aggregates congestion and incident information through a wide variety of information sources including Police Control Rooms, 4,000 CCTV cameras, local authorities, on road speed monitors motorists and public transport operators. These extensive sources, monitored by the country's largest team of traffic and travel analysts provides cause and effect of incidents and their likely duration.
Trafficlink's information reaches in excess of 40 million people each week across a number of different platforms.
Contact: Nick Simmons, MD, Trafficlink 020 7012 3545
ENDS
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