8th Aug 2006 07:00
Interactive World plc08 August 2006 RNS release 8 August 2006 Interactive World plc ("Interactive" or "the Company") Pre-close trading statement and update on current trading On entering the close period ahead of reporting its full year results to the 31July 2006 Interactive World plc (AIM: ITW), the mobile content technologycompany, is pleased to announce that trading has been good and in line withexpectations. Accordingly, the Company expects to report significant growth inprofitability and as a result it anticipates announcing a final dividend whenthe year end results are published in September. The Company continues toconsider possible acquisitions and the Directors are confident that it hassufficient resources to complete any likely transactions that may be possible inthe foreseeable future. Current trading continues to be strong despite the difficulties recentlyreported by other publicly listed companies operating in the mobile contentsector. Interactive is confident that its 'browse and buy' business model andthe quality of its 'celebrity-led' content will enable it to continue to retainand grow a customer base that is now approaching 900,000 regular users. A key part of Interactive World's success has been the relationship with theSport Newspaper group. The Company is, therefore, delighted to announce that ithas renegotiated its current distribution agreement with the Sport Newspapergroup which is now a five-year rolling contract rather than a fixed five-yearterm. This new agreement demonstrates the value both companies place in thiscommercial partnership. Trials of mobile gaming services announced on 19 June, provided via theCompany's joint venture with Probability Gaming, have produced good initialresults. Further evaluation work is necessary, but at this stage directors areconfident that this market will in due course provide a valuable additionalrevenue stream. Rob Johnson, Chief Executive, commented: "We are pleased to have made a good start to the year. We are confident thatInteractive World will continue to perform well and that our resilient businessmodel is sufficiently more robust than other companies operating in this spaceto justify our confidence." For further information, please contact: Rob Johnson Andrew FletcherChief Executive Financial Director020 8507 6969 020 8507 6969 / 07887 847505 Neil BoomGresham PR Ltd020 7404 9000 Information on Interactive World plc can be accessed via the company's websiteat www.interactiveworld.com Notes to editors: About Interactive World plc: Interactive World admitted its shares to trading on AIM in May 2006. • Interactive World sources digital media content from a number of third-party providers for distribution to customers of major UK mobile network operators and users of leading UK internet search engines. • The business, established 1999, is both profitable and cash generative. Profit before tax in the year to 31 July 2005 was approximately £3 million, on turnover of around £8.9 million. Mobile content represents an increasing proportion to the Company's turnover and profits, replacing internet content as the key driver of revenue growth. • The Company's proprietary software is able to match content with user profiles for the delivery of targeted promotional messages. Interactive World has over 4 million registered users, of which approximately 22% purchased content within the last 12 months. • Demand for content and services for mobile devices is growing rapidly, driven by increasing numbers of internet-connected mobile phones, a growing proportion of which have colour screens, and gaming and music playing capabilities. • The Company has strong relationships with a number of content providers, including a five-year exclusive arrangement with Sport Newspapers Limited. Interactive World has created portals to deliver content to over 4,000 different types of mobile device in the UK. The business model is highly scalable. Interactive World intends to continue building its relationships with mobile network operators, and to expand its operations into overseas territories. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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