23rd Sep 2008 18:00
Media Corporation PLC Trading Update Media Corp (AIM:MDC), a leading Advertising Network and internet publishingGroup, today provides an update on trading expectations in relation to the yearending 30th September 2008. The Company's core business, the Advertising Network division, is expected toreport revenue of not less than £2.5 million in the year to September 2008(2007: £1.8 million). This represents revenue growth of 39% compared to theprior year and demonstrates the opportunity the Company has seen in this sector. However, the revenue and profit in the Internet Publishing division is expectedto be below market expectations due to the ongoing Google penalty which hasaffected both Gambling.com and Creditcardexpert.co.uk, writing off bad debts andadverse foreign exchange movements with respect to the dollar. These externalfactors were initially highlighted in the interims and have continued to hamperthe performance of this business despite the concerted efforts of the Companyand its advisers. Accordingly the division's revenue is expected to be not lessthan £1.5 million in the year to September 2008 (2007: 2.2 million excludingdiscontinued operations). The combination of the two divisional results denoted above is expected to seerevenue and profit expectations lower than market forecasts for the 2008financial year. Despite the above, the Board remain extremely positive that strong growth in theAdvertising network business will continue to develop value for shareholders inthe medium term and despite poor recent performance in the publishing divisionthe portfolio of assets remains very valuable. The Group's balance sheet remains strong with cash expected to be approximately£4 million at 30th September 2008. Justin Drummond, CEO commented, "2008 has been a transitional year for the Group and we have invested heavily inbuilding a strong management and sales team and the technical infrastructure togrow the business". For further information please contact: Media Corporation plcJustin Drummond, Chief ExecutiveNilesh Jagatia, Group Finance Director (0)20 7618 9000 Daniel Stewart & Company plcSimon Leathers Tel: +44 (0) 20 7776 6550www.danielstewart.co.uk Notes to editors: Listed on the AIM market of the London Stock Exchange, Media Corp is a leadinginternet media and advertising group focused on website publishing and onlineadvertising. The Group has two principal divisions: Advertising Network - Formed in 1996, Eyeconomy specialises in mass reachcampaigns to over 32 Million unique consumers per month via its own proprietaryad-serving and tracking technology for clients including AOL, Dell and AmericanExpress. www.eyeconomy.co.uk Website Publishing - Media Corp has a diverse publishing division specializingin online media. Our impressive portfolio of websites includes a number ofmarket leading sites including www.gambling.com, www.onthebox.comwww.sport.co.uk, www.creditcardexpert.co.uk and www.flightcomparison.co.uk. www.mediacorpplc.comMedia Corporation PLC Copyright Business Wire 2008Related Shares:
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