21st Sep 2006 07:01
TV Commerce Holdings PLC21 September 2006 TV Commerce Holdings PLC TV Commerce Holdings PLC ("TV Commerce" or the "Group"), the AIM-listed mediaand entertainment company specialising in TV, telephony entertainment contentand broadcasting services, today reports its Interim Results for the six monthsended 30 June 2006. Highlights / recent activity • Turnover of £1 million, 231% ahead on first six months of 2005 • Turnover for the first six months ahead of turnover for full year in 2005 • Maiden pre tax profit of £63,416 • Gross Margin 29% • Strong second half trading to date with sales for July and August £0.4 million. Commenting on the results TV Commerce Chief Executive Vince Stanzione said: "The growth in revenue and our maiden profit have been achieved by continuing toevolve what has become a successful platform for interactive television. Withsales in July and August reaching new monthly records for the Group, the Boardremains confident in relation to the outlook for the rest of the year." For further information, please contact: TV CommerceVince Stanzione Tel: +44 (0) 1908 330 747 First City Financial LtdAllan Piper Tel: +44 (0) 207 436 7486 Seymour PierceStuart Lane Tel: +44 (0) 207 107 8029 Chairman's statement For the six months ended 30 June 2006 I am delighted we are able to report our maiden profit during the first half of2006, on the back of a substantial increase in revenue. This improvement inperformance has been achieved against a backdrop of increased competition and acontinuing presence of tight regulatory controls. Not only did sales for thehalf outstrip those for the whole of 2005, trading in the first two months ofthe second half has continued to grow strongly, setting new monthly salesrecords. Our activities continue to focus on the delivery of niche programmes using theSky Television platform, to generate funds from premium rate billing fromviewers who call in or use our text messaging services. We also continue to useinteractive technology to enhance viewing experiences, using a range ofmulti-media platforms such as mobile telephony, MMS, SMS, WAP, 3G, fixed linetelephony, the Internet and web TV. We now broadcast over 16.5 hours a day of live content over seven days a week -which is significantly ahead of last year. Alongside the growth in revenues, wecontinue to ensure that our transmission costs remain among the lowest in theindustry. One of our key strengths continues to be our ability to switch rapidly betweenformats to maximise revenue opportunities at different times of the day. Weoffer our customers a range of interactive programming, which includes psychicinterest, astrology, chat, dating, gaming and betting. Your Destiny Our psychic and astrology-based programme, remains a popular format. Althoughwe have, in recent broadcast schedules, been triallling other formats, customersfrom our 26,000-strong database of users continue to send text messages and callour psychics, generating premium rate revenues. Chat & Dating Formats Building on the success of our 'Match 69698' text base service and the trial ofchat based format, produced for third parties at the start of the year, we havesuccessfully launched our own chat and dating programme. As with our psychicshows, the programme is free to watch, with income generated from text andpremium rate calls. The formats are broadcasted on SKY to over 8 million homesfrom 1pm to 5.30am TV Gaming The TV gaming sector has been affected by the change in the way SKY classifiesits electronic programming guide, and by the increase in the number of newplayers in this market. Accordingly we have delayed the launch of our QuizRoulette format, even though this has achieved the necessary regulatory approvalfrom Ofcom to run in the UK. The intellectual property in relation to theformat and the brand, however, remain available to license or broadcast in othergeographic regions. Mobile Casino Gaming Our joint venture with Probability Games, announced last year, continues toproduce monthly revenues. We now have over 2,400 registered players who candownload free games to their mobile phone, with the option to transfer and playfor money, subject to age and identity verification controls. With previoussuccess following an advertising campaign on Channel 5 around late night pokershows, we plan to run a new campaign to promote our new 777casino brand andcontinue to develop new formats. Summary Whilst our positioning within our industry sector has established the Companyfor further growth, we remain aware that the future of the industry willcontinue to be heavily influenced by the regulatory framework within which weoperate. In this respect we continue to work closely with the relevantauthorities to ensure that our broadcasting and mobile formats meet the requiredguidelines. With September to December traditionally stronger months for TVviewing, we are looking forward to strong trading in the second half. Andy MinternChairman Consolidated Profit and Loss AccountFor the six months ended 30 June 2006 6 months 6 months 12 months Notes to 30 June to 30 June to 31 Dec 2006 2005 2005 £ £ £ Unaudited Unaudited Audited GROUP TURNOVER 1,033,265 311,726 723,992 Cost of sales (733,412) (429,444) (908,741) GROSS PROFIT / (LOSS) 299,853 (117,718) (184,749) Administration expenses (233,570) (157,337) (380,010) GROUP OPERATING PROFIT / (LOSS) 66,283 (275,055) (564,759) Interest receivable and similar items - 8,441 13,514Interest payable and similar charges (2,867) - (144) PROFIT/(LOSS) ON ORDINARYACTIVITIES BEFORE TAXATION 63,416 (266,614) (551,389) TAXATION - - - PROFIT/ (LOSS) AFTER TAXATION 63,416 (266,614) (551,389) Dividend - - - RETAINED PROFIT / (LOSS) FOR THE PERIOD 63,416 (266,614) (551,389) Profit/(loss) per ordinaryshare (in pence):Basic profit/(loss) per share 2 0.09p (0.58)p (1.0)p Consolidated Balance SheetAs at 30 June 2006 As at As at As at Notes 30 June 30 June 31 Dec 2006 2005 2005 £ £ £ Unaudited Unaudited Audited FIXED ASSETSTangible 14,801 - 16,141 CURRENT ASSETS Debtors 392,624 144,313 300,495Cash at bank and in hand 4 81,706 489,624 179,807 474,330 633,937 480,302CREDITORS:Amounts falling due within one year (79,401) (54,185) (150,129) NET CURRENT ASSETS 394,929 579,752 330,173 TOTAL ASSETS LESS CURRENT LIABILITIES 409,730 579,752 346,314 CREDITORS:Amounts falling due after more than oneyear - - - NET ASSETS 409,730 579,752 346,314 CAPITAL AND RESERVES Called up share capital 641,796 641,796 641,796Share premium account 624,066 624,066 624,066Merger reserve 66,351 66,351 66,351Profit and loss account (922,483) (752,461) (985,899)EQUITY SHAREHOLDERS' FUNDS 5 409,730 579,752 346,314 Consolidated Cash FlowFor the six months ended 30 June 2006 6 months 6 months 12 months Notes to 30 June to 30 June to 31 Dec 2006 2005 2005 £ £ £ Unaudited Unaudited Audited Reconciliation of profit/(loss)before interest and taxation tooperating cash outflowOperating profit/(loss) 66,283 (275,055) (564,759)Depreciation of tangible fixedassets 1,340 - 949Increase in debtors (92,129) (11,928) (168,110)(Decrease)/increase increditors (70,728) (34,354) 112,927 Net cash outflow from operatingactivities (95,234) (321,337) (618,993) Returns on investments andservicing of financeInterest received - 8,441 13,514Interest paid (2,867) - (144) (2,867) 8,441 13,370 Capital expenditure andfinancial investment Payments to acquire tangiblefixed assets - - (17,090) Net Cash outflow beforefinancing (98,101) (312,896) (622,713) FinancingShares issued - 1,248,761 1,248,761Flotation expenses - (416,550) (416,550)Repayment of loans - (105,000) (105,000) - 727,211 727,211 (Decrease)/increase in net cashin the period 4 (98,101) 414,315 104,498 Notes to Financial StatementsFor the six months ended 30 June 2006 1. Basis of preparation This Interim Statement has not been audited and does not constitute accountswithin the meaning of section 240 of the Companies Act 1985. The Group's Interim Statement consolidates the financial statements of TVCommerce Holdings PLC and its subsidiaries, TV Commerce Limited and The AdvertChannel Limited, each of which have been made up to 30 June 2006 and accountedfor under merger accounting. The statutory accounts for TV Commerce Holdings PLC for the period to 31December 2005 received an unqualified Auditor's Report and have been filed withthe Registrar of Companies. 2. Loss per share Basic Loss per share for the six months to 30 June 2006 is calculated bydividing the Group's profit after taxation of £63,416 (six months to 30 June2005: loss of £266,614) by the weighted average number of shares in issue duringthe period of 64,179,632 (six months to 30 June 2005: 45,766,881) 3. Dividend The directors do not recommend a dividend for the period to 30 June 2006. 4. Reconciliation of net cash flow to movement in net funds 6 months 6 months 12 months to 30 June to 30 June to 31 Dec 2006 2005 2005 £ £ £(Decrease)/increase in net cashin the period (98,101) 414,315 104,498 Loans repaid - 105,000 105,000Conversion of loans to equity - 500,000 500,000Movement in net funds in theperiod (98,101) 1,019,315 709,498 Net funds/(debt) beginning ofperiod 179,807 (529,691) (529,691) Net funds/(debt) end of period 81,706 489,624 179,807 Notes to Financial Statements For the six months ended 30 June 2006 5. Shareholders' funds On 22 November 2004, the Company was incorporated with an authorised sharecapital of 1,000 £1 ordinary shares, of which 1 £1 ordinary share was allottedat par for cash. On 18 January 2005, the share capital was subdivided into 100 ordinary shares of£0.01 each and, on the same date, the share capital was increased by thecreation of 124,900,000 shares, increasing the value of the authorised sharecapital to £1,250,000. On 18 January 2005, 43,367,200 ordinary shares of £0.01 each were issued inexchange for the whole of the issued share capital of TV Commerce Limited. On 10 February 2005, a further 20,662,332 ordinary shares of £0.01 each wereissued for a cash consideration of £1,239,740. On 17 March 2005, 150,000 ordinary shares of £0.01 each were issued for a cashconsideration of £9,000. 6. Copies of the Interim Statement Pursuant to Rule 20 of the AIM rules, copies of the Interim Statement will beavailable to Shareholders on the Company's web site at www.tvcommerce.tv and onrequest from the Company Secretary at the Companies registered office. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
EDL.L