24th May 2005 06:00
Embargoed: 0700hrs, 24 May 2005 Digital Classics plc ("Digital Classics" or the "Company") Trading Update Digital Classics Distribution DivisionDigital Classics plc, the world's leading international classical music andarts programme production and distribution business, has secured approximately‚£463,000 of sales for programmes within its distribution division at the MIP TVfestival in Cannes last month. The Company is confident of achieving at least afurther ‚£600,000 in additional sales from this festival over the coming weeksfrom contracts agreed and awaiting signature.MIP TV is only one of three major markets each year in which Digital Classicsparticipates. MIPCOM and MIDEM will take place in October and January where theCompany expects to generate further sales from its catalogue. The Board istherefore confident that the financial performance of the distribution divisionwill be, at least, in line with expectations.Digital Classics Production DivisionThe Board is pleased to inform shareholders that it is implementing anaggressive acquisition strategy with regard to private independent productioncompanies. A number of preliminary discussions with such businesses areongoing.Digital Classics is seeking independent production companies to fitstrategically alongside its existing Iambic Productions subsidiary.Through Digital Classics' distribution subsidiary, the Company is able toderive further value from an enlarged production division, having the abilityto market and sell the products entirely to the benefit of the Digital Classicsgroup.The Board is strongly of the opinion that significant future growth andshareholder value will come from an expanded production division.David Elstein, formerly Chief Executive of Channel 5, now Chairman of DigitalClassics, said,"We are delighted with current trading and the response from Cannes where, fromthis festival alone, we hope to generate over ‚£1 million in sales. It is astrong indication of the sales potential of the remaining markets this yearand, indeed, of the Group performance as a whole.Our intention to expand the production division is a rigorously thought outstrategy that has the potential to re-shape and re-scale the business. It is anambitious plan for growth - a new phase in the Company's development."Chris Hunt, Chief ExecutiveDavid Elstein, ChairmanTel. 020 7636 1400Ben Simons, Hansard CommunicationsTel. 020 7245 1100Notes:Digital Classics Distribution is the world's largest catalogue of classicalmusic and arts related programming, with in excess of 3000 hours of contenteither owned or under management. Its programmes include many of the world'sfinest music and arts stars and repertoire.Iambic Productions is one of the UK's leading niche independent productionbusinesses. It has gained significant international recognition and was theonly British company to win two Primetime Emmys at the last awards ceremony. Itis widely considered the blue riband production company in its field. It'sproductions include titles about Michael Jackson, Abba, Stuart Sutcliffe the"Lost Beatle," and, very recently, the World Poker Masters Tournament.ENDDIGITAL CLASSICS PLCRelated Shares:
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