Trading Statement

RNS Number : 7866H

TLA Worldwide PLC

17 July 2012

 



TLA Worldwide plc

Trading Update

TLA Worldwide plc (AIM: TLA) ("TLA" or the "Group"), the athlete representation and sports marketing business, provides the following trading update in advance of its interim results for the six months ended 30 June 2011 which will be announced in mid September 2012.

Performance thus far in the year has been in line with expectations within the individual business units as described below. When its draft clients sign the Group will have increased its client roster by 40. Post the draft, revenue coverage for the full year stands at more than 90% with profit booked at c50% of full year expectations.

Major League Baseball

Trading in the Group's baseball representation business is strong. As previously announced, in the baseball off season the business has negotiated over $100 million of off-season playing contracts for its baseball clients. Such recent activity brings the total of the Group's guaranteed baseball client contracts under management to more than $520m. In June the MLB Draft, the process by which amateur players are chosen to play professional baseball, took place. TLA's baseball division performed as hoped, advising more than 15 players, including five first round and supplemental picks, as well as the fourth overall selection. As a result the Group has increased its overall roster by 20% and the number of players it manages that are currently on MLB 40 man rosters by over 30% since admission to AIM. This increase is a combination of new signings and players coming from the minor leagues, officially marking the start of their MLB service time feeding the pipeline for future revenues. Last week four players from TLA's roster represented their respective teams in the All Star game demonstrating the strength of its roster. TLA has now represented 17 past and present All Star players. Revenue visibility currently stands at more than 95% of market forecasts for the full year.

Market trends continue to be very favourable for baseball and the US sports media landscape.  US television and media rights fees are increasing and, with respect to the MLB, are projected to further increase at both the local and national levels (Source: Forbes, ESPN).  At the same time, in a sign that MLB is economically healthy, Fitch Ratings recently announced that it has increased Major League Baseball's Club Trust Securitization's $300 million to its senior secured credit facility 'A-' and affirmed the 'A-' rating on the outstanding $842 million term notes and the outstanding senior secured credit facility ($500 million total).  Fitch cited among its reasons for their increase solid underlying league economics, league oversight and governance and the long history of rising television contracts.

Sports Marketing

Trading within the Group's sports marketing division has remained healthy across all four of its divisions. A refocus of the sales function in addition to access to a larger client roster has laid the foundations for healthy growth in the second half and beyond. Contracted revenues through 2012 currently stand at close to 80% of market expectations.

The Group's golf division has had a successful six months. Its clients have registered over twenty top 10 finishes on the PGA TOUR with more than ten top 10 finishes on the Nationwide Tour. In addition its roster recorded two top ten finishes in the majors, The Masters and US Open, which have been played this year. As recently reported recruitment has been particularly strong thus far with new PGA TOUR members recruited including John Huh, 21 (tipped to be Rookie of the Year) and Jeff Overton, 29 (Ryder Cup player in 2010) joining the practice. This performance coupled with the recruitment profile feeds the division's pipeline which underpins expected growth post this year.

Sports marketing has performed as expected for the six months to June 2012. As previously mentioned the Group's roster recorded 60 appearances at the time of the Super Bowl in February. Furthermore the practice has an exclusive representation agreement with Ryan Tannehill, the 6^th pick in the NFL Draft who is set to be the starting quarterback for the Miami Dolphins this coming season. Management is pleased with the division's current run rate and notes that revenue visibility has increased through the expansion of its corporate consultancy practice where monthly retainers are levied.

Within the coaching and broadcasting divisions the principals continue to recruit new talent. Whilst this uplift may not be felt in 2012, medium term prospects remain bullish. These divisions are underpinned by long term contracts and management is pleased to report that performance has been in line with expectations in the period since the admission to AIM.

-Ends-

For further information

TLA Worldwide Mike Principe, Chief Executive	Tel: [phone]
Pelham Bell Pottinger Anna Gamble/Dan de Belder	Tel: [phone]
Cenkos Securities                    Ivonne Cantu (Nomad)	Tel: [phone]

Julian Morse/Alex Aylen (Sales)

About TLA Worldwide

Founded in December, 2011 through the merger of Legacy Sports Group and The Agency Sports Management, TLA Worldwide plc (TLA:LN) and its' subsidiary, The Legacy Agency, Inc., is a leading athlete representation and sports marketing business with a full service offering to its clients in baseball, broadcasting, coaching, endorsement and golf talent, as well as corporate consulting. The company's success and growth potential is founded on three key pillars: the competency of the underlying businesses, their complementary practices and the strength and experience of the management team. TLA has an exceptional roster of clients including baseball All-Stars C.C. Sabathia, Carl Crawford, Adam Dunn, Ricky Romero, Rickie Weeks and Vernon Wells, broadcasters Troy Aikman, Dan Hicks, Darryl Johnston, Chris Myers and Mitch Williams, college coaches Mick Cronin, Randy Edsall, Mark Fox and Mark Gottfried, PGA TOUR professionals, Jim Furyk, Matt Every, Robert Garrigus, John Huh, Spencer Levin, Jeff Overton, John Senden and Kyle Reifers, and talent marketing clients such as Reggie Bush, Colt McCoy, Ndamukong Suh and Ryan Tannehill. Headquartered in New York, TLA operates out of offices in New York, Newport Beach, Houston, San Francisco, Charleston, SC and London. For more information, visit www.tlaww-plc.com.

 

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