Half-yearly results

26 September 2013

Motive Television PLC

("Motive", the "Company" or the "Group")

Half-yearly results for the six months ended 30 June 2013

Motive Television PLC (AIM: MTV.LN), the digital television technology, software and services provider, is pleased to announce its interim results for the six months ended 30 June 2013.

Financial highlights

· Revenue from continuing operations up 16 per cent. to £573,082 (H1 2012: £493,573)

· Gross profit from continuing operations up 90 per cent. to £208,725 (H1 2012: £109,778)

· Loss attributable to continuing activities before interest reduced by 20 per cent. to £984,478 (H1 2012: £1,234,418)

· Cash at hand and in bank at 30 June was £566,026; since the period end a further £1,000,000 has been raised (before costs).

Operational highlights

· Tablet TV software ready for market testing in the USA and soon in the UK

· Digiturk fully launched and generating significant licensing income

· CME implementation in Prague nearing completion

· Binding Heads of Agreement signed with Siyaya and anticipated launch

Commenting on the results, Michael Pilsworth, Executive Chairman, said:

"The Company is making significant progress in attracting new clients, gaining recognition for its ground-breaking solutions, completing and patenting its technology, and moving toward launches of new services in participatory partnership with our clients. Motive has the technology, the opportunities, and the financing now to realize its potential."

 Enquiries:

Notes to Editors

Motive Television provides software and services to the global television industry, enabling Television Anytime Anywhere™. Motive's patented and proprietary technology platform responds to the heightened viewer demand for watching what they want, when they want, on whatever device they want; and is driven by the mandatory switchover from analogue to digital broadcasting as mandated by the International Telecommunication Union.

Motive Television provides broadcasters and pay television operators with enabling technology that provides opportunities to deliver highly valued services to viewers that generate additional income and retain existing subscribers, comprising:

Television Anytime. A technology platform that enables digital broadcasters and pay television operators to offer enhanced broadcasting services with or without the need for an Internet connection. These services include, among others, Video-on-Demand, Catch-Up TV, Virtual Channels, Sneak Preview TV, and Targeted Advertising. Television Anytime is currently in commercial operation in Europe both in digital terrestrial (DTT) and soon in satellite (DTH) environments. Patented in Spain and patent pending in the EU.

Television Anywhere. An advanced multi-screen multi-channel technology that allows a viewer to control and watch all the content received by or recorded in their main home television equipment on any computer, mobile phone, iPad or any other Internet connected device. Television Anywhere is software-based and can be updated via software upgrades on existing STB. US patent pending.

Motive's content division is:

Motive Television Limited, a Dublin-based award-winning independent production company that produces factual programmes for Irish broadcasters. It specializes in live sports production and sports documentaries and also produces factual and entertainment series.

Motive Television was founded in London in 2005 and its shares are quoted on the London Stock Exchange (AIM).

http://www.motivetelevision.co.uk 

Chairman's statement

Progress

I am pleased to announce Motive's Interim results for the half-year ended 30 June 2013.

Major recent developments include:

· Having commercially launched its new services using Motive technology, Digiturk continues to upgrade and introduce new features to its pay television satellite platform with support from Motive. The Company has completed Phase 2 additional features for Digiturk that will be launched this Autumn, and is in final negotiations regarding contracts for further development and support. In the meantime, Motive has received over £150,000 in payments based on set-top boxes ("STB's") manufactured with the Company's technology in the first half of 2013, and based on Digiturk estimates these license fees will increase for the second half of 2013 and beyond. Although the Company cannot predict the ultimate number of the 2.5 million current Digiturk subscribers who may receive STB's with the Company's technology in the next 2-3 years, the initial revenues received indicate that the Company's conservative estimates remain reasonable. The continuing royalties are in addition to the previously-disclosed engineering development contract for $1.1 million plus the new development and support contracts.

· Motive has been working with terrestrial broadcast group CME to test and complete its Television Anytime Anywhere platform in CME's flagship market, the Czech Republic. Once implemented, the CME service broadcast from Prague is expected to be one of Europe's most advanced platforms. CME has requested a number of extensions and additions to the platform that are anticipated to create additional revenues for Motive in 2014 in addition to the continuing variable subscriber-based income following CME's commercial launch of the service, now expected to be in Q2 2014.

· Motive has completed a full-function prototype and app of its Tablet TV technology for the United States market that demonstrates choosing and viewing live channels, recording for later viewing, and selecting and receiving video-on-demand content. Beginning mid-September, Motive and its Tablet TV partner Granite Broadcasting Corp. have commenced meetings with broadcasters, content companies, consumer electronics, and mobile television companies to gain support and invite strategic partners to join in anticipation of a market test with users scheduled to begin in San Francisco starting during January 2014.

· Motive continues in discussions with a number of telecoms companies regarding its Mocast solution, which enables 4G LTE Mobile Operators to efficiently provide managed scheduled downloading of video content to their OTT video subscribers. While the sales process is lengthy with these large organizations, the Company continues discussions with telecoms that we believe will lead to field trials.

· In February 2013, Motive announced a paid consulting contract with Siyaya, a proposed new DTT broadcasting platform based in Johannesburg, South Africa to assist them with planning their services and preparing for a licensing competition. Under the contract, Motive prepared a design for the technology requirements and ran a tender process to select suppliers. Under a newly signed binding Heads of Agreement, Motive will serve as the primary technology partner and systems integrator for Siyaya. Following the licensing hearing in Johannesburg on 24 July 2013, a decision on the licence is expected soon. Should the licence be awarded to Siyaya, Motive will develop, implement, and support the technology for Siyaya's DTT transmission system. In addition, Siyaya is investigating a parallel distribution of their channel bundle and VOD on a satellite (DTH) platform. If this is done, Motive will again be the solution provider and benefit from both up-front and continuing subscriber or revenue share fees based on success.

· The Company is in negotiations with Mediaset to renew its contract with them.

· In May 2013, Motive announced its plans to develop a version of Tablet TV for the UK, compatible with Freeview. The Company has joined the Digital Television Group ("DTG", who publish and maintain the technical specifications for Freeview in the UK) and is in the process of developing its product and meeting the requirements of DTG to make it possible to complete the process for licensing the Freeview brand for its UK Tablet TV. The Company is in on-going discussions with potential hardware licensees and partners for Tablet TV in the UK with the anticipated launch of products in the first half of 2014.

· Motive continues to prepare and file additional patent filings to protect and extend its intellectual property rights in additional countries and will announce these in due course. In April 2013 Motive announced the award of a US patent for its Television Anywhere technology.

· Motive's content business had a number of programmes broadcast in H1 2013: "The Gambler" followed the fortunes of Irish poker player John O'Shea at the Las Vegas World Series in 2012; "Batmen" explored the history of cricket in Ireland; "The Estate" followed the fortunes of the residents of a council estate in Waterford; ""No Time to Die" looked at the subject of paediatric palliative care in Ireland; and "We Got Game" explored the history of basketball in Ireland in the 1980s. All five programmes were delivered on time and on budget to Irish broadcasters and are now being syndicated globally.

Since the period end new contracts have been signed with the Broadcasting Authority of Ireland ("BAI") for the production of two new documentaries: "The Long Walk", for Setanta Sports, follows the fortunes of Irish professional golfers trying to qualify for the PGA tour; and "Prison Families" is a documentary series for TV3 following the lives of the families of prisoners. Also, RTÉ has commissioned a one-off sports documentary about Irish superstar cage fighter Conor McGregor.

In addition, the BAI has indicated that it will provide funding for two new documentary series, "The Estate" series 2, for TV3, and also an adult literacy series (in Irish) for TG4, "A Sporting Chance", together worth €450,000.

 · Following the preliminary judgment in the CCAN dispute announced by the Company on 9 July 2013, Motive has lodged an appeal. This is a written process, and on average it takes between 9 and 14 months. Following this preliminary judgment the Board have carefully reviewed matters relating to the dispute with CCAN and the legal advice given. The advice remains that Motive's case is very strong and that the judgment should be overturned on appeal.

Summary

The Company is making significant progress in attracting new clients, gaining recognition for its ground breaking solutions, completing and patenting its technology, and moving toward launches of new services in participatory partnership with our clients. Motive has the technology, the opportunities, and the financing now to realize its potential.

Michael Pilsworth

Chairman

25 September 2013

1. GENERAL INFORMATION

Motive is a company domiciled in England and Wales whose registered office address is Windsor House, Barnett Way, Barnwood, Gloucester GL4 3RT.

The condensed consolidated interim financial statements of the Company for the six months ended 30 June 2013 comprise the company and its subsidiaries (together referred to as "the Group"). These interim statements do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The interim financial information has been prepared using the same accounting policies, presentation, method of computation and estimation techniques as are expected to be adopted in the Company financial statements for the year ending 31 December 2013 and which were adopted in the audited Group financial statements for the year ended 31 December 2012.

The financial information for the year ended 31 December 2012 has been extracted from the statutory accounts for that period. The auditors have reported on the statutory accounts for the year ended 31 December 2012 and their report was not qualified. The auditors' report however drew attention by emphasis of matter to issues surrounding the ability of the company to continue as going concern and uncertainties over the carrying value of goodwill. A copy of those financial statements has been filed with the Registrar of Companies.

2. GOING CONCERN

This announcement of the Company's half-yearly results has been prepared on the basis that the Company is a going concern. The statutory accounts for the year-ended 31 December 2012 indicated that additional funding was required. There remains an on-going requirement for the Company to win new contracts and/or raise additional funding. If this was not to happen the Company would have to take action to reduce its cost base and provisions would be required for costs arising on discontinuance and closure and against the carrying value of goodwill. The directors are confident that further injections of funds can be secured in the future and that further contracts will be won and have therefore prepared the half-yearly results on a going concern basis.

3. LOSS PER SHARE

The loss per share is based on a loss for the period of £1,376,537 (six months ended 30 June 2012: £1,389,603; year ended 31 December 2012: £1,200,598) and the weighted average of ordinary shares in issue for the period of 10,366,947,917 (six months ended 30 June 2012: 2,913,100,363; year ended 31 December 2012: 3,783,727,173).

4. NOTES TO THE STATEMENT OF CASH FLOWS

 5. AVAILABILITY OF THE INTERIM REPORT

Copies of the interim report will be available from the Company's registered office and also from the Company's website www.motivetelevision.co.uk. Copies of the interim report will not be sent to shareholders.