Media Corporation PLC
Media Corporation PLC
Trading update
Media Corporation plc ('Media Corp' or 'the Group'), a leading internet
advertising Group, issues a trading update ahead of the Group's preliminary
results for the year ended 30 September 2007.
Trading has been in-line with market forecasts for the year and operations
continue to perform well following a strong return to operating profitability
during the second half of the financial year.
In addition, the Group has made a significant exceptional pre-tax profit of
approximately £2.5 million in the 2007 financial year, following the successful
sale of the Casino.co.uk business. Additional consideration of up to £0.625
million may also be received by the Group during the 2008 financial year if the
assets sold achieve certain pre-agreed targets during the first six months'
trading.
The Group ended the 2007 financial year in a very strong financial position with
over £6.5 million in cash.
Commenting on today's announcement, Justin Drummond, CEO, said:
'The Board has successfully re-focused the business, reducing the Group's
reliance on advertising revenue from the online gaming sector. Initial benefits
of this diversification strategy have been witnessed during the second half of
the year. We are pleased with the growth experienced as a direct result of
repositioning our business, and we look forward to a promising start to the 2008
financial year'.
Internet Publishing Highlights
-- ignificant investment in senior management, technical infrastructure and
internet publishing assets completed during the second half of the 2007
financial year
-- Recruitment of a team of highly experienced internet publishing
specialists during the second half in Technical, Search Engine
Optimisation and Copywriters/Content writers
-- Successful Re-launch of market leading web-sites: www.onthebox.com and
www.gambling.com during the second half of 2007
-- Ongoing Premium Domain Name acquisitions and new web sites under
development
Advertising Network Highlights (Eyeconomy)
-- Transition from TV budgets to online is driven by penetration of
internet access to a majority of the UK population: more time online
than watching TV in many homes
-- Eyeconomy provides very large scale media spaces with reach comparable
to TV but traceable and online
-- Eyeconomy currently reaches over 30 million people in the UK each month
Major Client Wins
-- Recent Clients include American Express, Sky, AOL, World Wildlife Fund
and Dating Direct: Ongoing major new client pitches underway
-- High proportion of long term (over three month) campaigns
Demonstrated Growth
-- Sales team more than doubled in size during the second half of the
financial year
-- Securing rights to broad traffic sites: representing over 750 websites
-- Geographical expansion already underway
-- Recent investment in significant presence at trade shows and trade PR
starting to return value
Strategy going forward
The Board is aiming for continued significant growth during 2008 as we seek to
maximise the potential of the Group's internet publishing assets. The Group
clearly owns very valuable internet assets, as was demonstrated by the recent
sale of the Casino.co.uk business for £3.6 Million. With an existing significant
web site portfolio still owned by the Group, the Board will continue to rapidly
develop and enhance the value of its core internet assets, and maximise their
value for the benefit of shareholders.
For further information please contact:
-0-
*T
Media Corporation plc
Justin Drummond, Chief Executive
+44 (0)20 7618 9000
Buchanan Communications
Charles Ryland/Suzanne Brocks/Susanna Gale
+44 (0)20 7466 5000
Canaccord Adams Limited
Mark Ashurst, Managing Director
+44 (0)20 7050 650
*T
Notes to editors:
Listed on the AIM market of the London Stock Exchange, Media Corp is a leading
internet media and advertising group focused on website publishing and online
advertising.
The Group has two principal divisions:
Website Publishing - Media Corp has a diverse publishing division specializing
in online media. Our impressive portfolio of websites includes a number of
market leading sites including www.gambling.com, www.creditcardexpert.co.uk,
www.onthebox.com and www.flightcomparison.co.uk.
Online Advertising - Formed in 1996, Eyeconomy specialises in mass reach
campaigns to over 30 Million unique consumers per month via its own proprietary
ad-serving and tracking technology for clients including AOL, Dell and American
Express.
www.eyeconomy.co.uk
www.mediacorpplc.com
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