25th Apr 2007 07:02
UBC Media Group PLC25 April 2007 25 April 2007 UBC Media Group plc Trading Update UBC Media Group plc (UBC.L) has today issued the following Trading Update inadvance of the announcement of its results for the year ended 31 March 2007 on25 June 2007. UBC expects to deliver preliminary results in line with expectations, supportedby strong advertising sales in the last quarter. The Company has today separately announced the sale of its Classic Gold radiostations in order to concentrate on its service businesses, including itsgrowing network programme business. In the last three years, UBC has built astrong business in the area of network programmes, supplying to commercial radioTraffic News, Entertainment News and, from this year, main National andInternational News in a joint venture with Sky News. This business relies on the sale of national advertisements within thebulletins. Following a difficult period earlier this year for the radioadvertising market, airtime sales in February and March were particularlystrong. This revenue performance improvement has continued into the start ofthe new financial year as our Sky News Network continues to build. AprilCommercial revenues are currently running 27% ahead of the same period lastyear. This gives the Company confidence for significant revenue growth fromnetworked programmes in the financial year 2007/8. The Company's Interactive business, which sells digital radio software, isexpected to see sales growth of around 19%, driven by software sales to theemerging US digital radio market. Sales in UBC's production businesses, which provide commissioned programmes,will show slight decline but with improved margins and profit when compared tothe financial year 2005/6. Development of the Company's pioneering service that will allow radio listenersto purchase music directly from digital radio stations has progressed well.The service has been transmitting 24 hours a day on Heart in London since Marchwithout interruption. At present the only device capable of receiving theservice is the 'Lobster' digital radio equipped mobile phone. A restrictednumber of Lobster phones have been upgraded with UBC's software during thistrial period and over 1,600 tracks have been successfully purchased since theservice went live. Commercial success of the service relies on the wide availability of digitalradio in devices with a 'return path'. Sales of mobile phones with FM radiochips included have increased by 80% in the last 12 months and the increasedfunctionality of digital radio is expected to attract handset manufacturers asthis market continues to grow in importance. However, perhaps more important,will be a new generation of domestic radios, currently emerging, which areconnected to the Internet. UBC now believes that the mobile market will be significantly supplemented byin-home digital radios capable of operating its service and that this section ofthe market will advance more rapidly than it had been expecting. The Companywill give specific details of plans in this area, which are currently subject tocommercial confidentiality, at the time of its preliminary results. It nowbelieves it would not be to the optimum benefit of the Company to stage a fullconsumer launch of the service ahead of the availability of a wider range ofdevices other than the Lobster phone. The Company will continue to add radiostations as planned in the coming months and expects to launch a full commercialservice before the end of this year. A fuller timetable will be provided withUBC's preliminary results announcement. Enquiries Simon Cole, Chief Executive, UBC Media Group plc: Tel: 020 7453 1600Diane Barnes, Portland: Tel: 020 7404 5344Sarah Wharry, Seymour Pierce: Tel: 020 7107 8047 There will be a conference call for analysts and investors at 8.30a.m. (BST)today. Details are as follows: Conference call number: 020 7131 0400Pass code: 415470 # About UBC Media Group UBC is quoted on the London Stock Exchange's AIM market. The Group is themarket leader in the supply of audio content and broadcast data software to theradio industry in the UK. In addition to the entertainment, traffic and traveland national news services provided to commercial radio, the Group is thelargest independent producer of radio programming for the BBC and the UK'sleading supplier of digital radio scrolling text and EPG software. The Groupalso has a partnership with Channel 4 Television in national speech stationOneword and is part of the MXR Regional Multiplex consortium. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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