(CMX) Catalyst Media

28 March 2013

Catalyst Media Group Plc

('CMG' or the 'Group')

Interim Results for Six Months Ended 31 December 2012

Catalyst Media Group Plc ("CMG") announces its interim results for the six months ended 31 December 2012.

CMG is a 20.54% shareholder in Satellite Information Services (Holdings) Ltd ("SIS") and the results include its share in the profits of SIS for its period ended 30 September 2012 as an equity accounted associate.

Financial Highlights for the six months to 31 December 2012

•     CMG profits after taxation of £2m (2011: £1.9m), an increase of 3.6% over prior period

•     Earnings per share 7.18p (2011: 6.88p)

•     Net asset value per share of 131p (2011:122p) an increase of 7.4% over prior year

•     Overheads further reduced

•     CMG dividend of 7p per share paid in October 2012

•     SIS revenues to 30 September 2012 of £131m (2011: £116m), an increase of 13.4% over prior period

•     SIS EBITDA of £25m (2011: £23.4m), an increase of 6.6% over prior year.

•     SIS profit on ordinary activities before interest and tax of £13.8m (2011:£13.8)

·      CMG interim dividend of 7p to be paid in May 2013

Michael Rosenberg, Chairman of Catalyst commented:

"Once again SIS has shown improving results compared with the previous comparative period with a 13 per cent. increase in revenues and nearly 7 per cent. increase in EBITDA. The Board of SIS has adopted a progressive policy on dividends. We received £1,027,000 in October 2012 and, as has already been announced, a further £2,054,000 dividend in respect of the SIS year ended 31 March 2012  was received in March this year, thus enabling CMG to declare an interim dividend for the current year of 7p per share."

Enquiries

Michael Rosenberg, Non-executive Chairman:    07785 727595

Melvin Lawson, Non-executive Director:             020 7637 8412

Strand Hanson Limited: +44 20 7409 3494

James Harris

Angela Hallett

Chairman's Statement

For the six month period ended 31 December 2012, the Group has generated a net profit after taxation of £2,004,599 (2011 - £1,935,077).  Net assets were £36,154,479 (2011 - £33,725,115) equivalent to 131p per share.  All debt has been eliminated and the Group ended the period with a cash surplus of £529,000.  A dividend of 7p per share was paid in October 2012 and an interim dividend of 7p per share will be paid in respect of this financial year on 3 May 2013.

The main asset of the Group remains the 20.54% stake in SIS.  CMG equity accounts for its share in the profits of SIS.

The revenues of SIS during its six month period to 30 September 2012 included £78 million derived from the long-established business of providing integrated television and data services to licensed betting offices in the UK, Ireland and overseas.  A further £48 million was generated from the business of SIS LIVE which provides satellite news-gathering and associated transmission services to its customers and also provides outside broadcast television production units including sound support and communication.

The services to the betting industry are supported in the main by fixed term contracts both with the retail owners of betting shops and with the racecourses that enable pictures to be delivered to those shops.  SIS now holds long term media rights representing in excess of 50% of all UK horse racing fixtures.  This ensures the supply of images and data from the coverage of horse racing fixtures at these racecourses until 2016 and 2017 respectively and 2018 in respect of the Republic of Ireland.

In February 2013, a multi-channel production and distribution agreement was signed with Ladbrokes plc ("Ladbrokes") covering its 2,490 shops in the UK and Ireland.  An additional third channel will be produced from the HD studio in Milton Keynes.  This contract is for five years covering all Ladbrokes sites in the British Isles. Ladbrokes will retain full editorial control of the channels, with SIS providing facilities, content, production and distribution.

SIS has signed an exclusive agreement with Betfred to distribute all three of its shop TV channels. The SIS MediaCity Studios will become home for Betfred TV, with SIS providing full production, voice over booths, gallery with editing suite, and a two tier studio presentation.

It is interesting to note that the number of betting shops in the UK has remained relatively stable and, indeed, in some areas has increased. SIS2 was developed in early 2011 for the retail market outside the UK and Ireland, and features continuous betting opportunities throughout the day. In this respect SIS has a partnership with INTRALOT through which services have been rolled out into retail outlets in Greece, Russia, Bulgaria and Azerbaijan.

SIS Live

SIS Live is Europe's largest outside broadcast and satellite uplink provider.  It offers a complete broadcasting solution including host broadcast and outside broadcast facilities, broadcast systems, integration services, wireless camera solutions, satellite uplinks and immediate satellite internet services anywhere.  It operates the largest fleet of outside broadcast and satellite uplink trucks in Europe with bases throughout the UK and Europe.  It holds contracts with leading broadcasters, including Sky, BBC and ITN delivering 80% of the UK's live news contribution feeds

During the period ended 30 September 2012, SIS Live delivered major events such as the Queen's Jubilee, The Olympics and the UEFA European Championships. The combination of these exceptional events all in one period made this its most successful year, with it being unusual for so many major events to occur in one single period.

In July 2012, SIS Live launched its new teleport facility and media suite in Salford, Manchester.  This is the largest ever built in the north of the UK.  This state-of-the-art facility has nine satellite dishes.  In the period under review SIS delivered the first live high definition stream of a classical music concert at the Royal Albert Hall through YouTube. 

A five year strategic partnership agreement was also entered into with BT Media and Broadcast under which both parties will be able to use each other's infrastructure to expand their presence in fibre services markets.

SIS Live has recently signed a new contract with European Tour Productions to provide worldwide satellite services for their golf coverage until the end of 2018.

Dividend

The interim dividend of 7p per share will be payable on 3 May 2013 to those shareholders on the register of members on 12 April 2013.

Conclusion

SIS continues to generate significant positive cash flow from its operations. As stated earlier, the board of SIS has agreed to pursue a progressive policy of dividend distributions subject, as always, to cash needs from time to time.  It is the intention of the board of CMG to distribute the majority of the profits arising from these dividends.  It should be noted that in the future dividends from SIS are likely to be only distributed on an annual basis. Overheads continue to be kept at a minimal level.

Notes to Editors

SIS principal activities are

.   the provision of satellite news-gathering and associated transmission services through

    its market-leading SISLink division (Uplink Services);

.   the provision of outside broadcast television production units, including sound, support

    and communication (Outside Broadcast);

.   its long-established business of providing integrated television and information

Consolidated interim statement of comprehensive income

Consolidated interim statement of financial position

Notes to the interim financial statements

The Group's interest in the associate, Satellite Information Services (Holdings) Limited, a company incorporated in Great Britain, ('SIS') is held by Alternateport Limited. Alternateport Limited holds an investment of 20.54% in the equity share capital of SIS and is entitled to appoint a director and alternate director to the SIS board. This right has been exercised since acquisition. Alternateport Limited is a wholly owned subsidiary of Catalyst Media Holdings Limited a wholly-owned subsidiary of the Company. The intangible assets represent the value attributable to the ongoing business activities of SIS. These are subject to an annual impairment review.

*The period covered by the associate's accounts is 6 months to 30 September 2012.

The financial results for SIS are taken from the management accounts to 30 September 2012, adjusted in order to align the accounting policies of SIS (whose accounts are prepared under UK GAAP) and CMG (whose accounts are prepared under International Financial Reporting Standards). Adjustments have been made in respect of the amortisation of goodwill and the recognition of the fair value of derivatives held by SIS as at the balance sheet date. The net effect of these adjustments is to increase the value of the investment in associate in the financial statements by £2,094k (2011: £1,719k).

Consolidated interim cash flow statement

Consolidated interim statement of changes in equity

*On 23 December 2011, the Company purchased in the market 497,524 Ordinary shares of 10p each in Catalyst Media Group Plc at a price of 51p per Ordinary Share. The purchase was made out of distributable reserves and the shares were cancelled on 15 October 2012.