Final Results
Media Content PLC
6 December 2000
MEDIA CONTENT PLC
Announcement of Final Results for the year ended 30 June
2000
Media Content PLC ('Media Content' or 'the Company')
today announces its final results for the year ended 30
June 2000. The Annual Report and Accounts has also been
sent to shareholders today and copies are available from
the Company's registered office, 29 Pall Mall Deposit,
124-128 Barlby Road, London, W10 6BL.
SALIENT FEATURES
2000 1999
£ £
Turnover 328,989 40,555
Loss after taxation (5,225,289) (1,061,194)
Loss per ordinary share (0.9) (0.5)
(pence per share)
CHAIRMAN'S STATEMENT
Dear Shareholders
I am pleased to announce the first full year operating results
of Media Content PLC, highlighted by a significant growth in
revenue to a level eight times that of the previous year.
At the same time, although this produces an apparently large
headline loss, the Board has decided to operate the highest
possible prudence in its approach to goodwill, notably through
the write-off of £4.7m related to the reversal in March 1999.
This will enable investors to have a clearer picture of Media
Content's financial position now and in future, which the Board
believes is very positive given the development prospects which
the company foresees for itself, as well as its healthy balance
sheet.
The market for sports media rights and related products and
services continues to grow at a tremendous pace. In addition to
being the driver of pay TV penetration, sports is proving to be
critical to the development of emerging media mass markets such
as internet and wireless. As such, the platform for Media
Content's activities is enormously healthy.
In its first full year of operations, Media Content has
significantly developed its business and further refined its
strategy. Critically, the company's operating approach has been
clearly validated by the market, as evidenced by the key sports
media brands that have chosen Media Content as their advisers.
In addition to previously announced activities, highlights of
the operating year are the signing of a long-term deal as media
advisors to Manchester United PLC - the world's pre-eminent
sporting brand, and the appointment of Media Content by the New
Zealand Rugby Union to advise the legendary All Blacks on their
media rights. Central to these deals are the merging of old and
new media and the continued transformation of these properties
into the digital era. Consistent with Media Content's operating
bias, both deals enable us to participate in upside derived from
the exploitation of our clients' rights and, in turn, build
asset value.
Media Content has divided itself into two units on an operating
basis, Media Content Sports Media Advisors Ltd., and Media
Content Development Ltd. These two units are strategically
linked and are designed to provide mutual benefits to each
other.
Media Content Sports Media Advisors' activity is to act as an
independent advisor to broadcasters, rightsholders and other
sports media firms as regards the media rights. Due to the
experience and relationships of the principals and the clear
need for an independent, non-aligned operator, this entity is
serving a growing roster of clients. Activities have included
the successful worldwide marketing of the television rights for
the Sydney 2000 Paralympics to record worldwide audiences, the
procurement of a major European contract for US sports
entertainment group the World Wrestling Federation, the
programming of the International Football Channel, and an
advisory contract with AirTV, an entity set up to feed live
sports programming to aeroplanes.
Media Content Development undertakes, with relevant partners, to
develop new properties, principally in the new media area. Its
role is in the conception, strategic and operational
development, arrangement of finance and contribution to ongoing
management of such sports media entities. We expect to use the
proceeds of this year's successful capital raising to further
our interests in this regard. Although we view the current
flagging perception on the part of financial markets of the
value of internet and technology-based businesses as temporary,
we have nonetheless taken a sensible approach to this area. We
continue to review many deals but remain cautious, as evidenced
by our current strong cash and capital positions.
An example of the synergy Media Content sees between its
operating subsidiaries is the company's acquisition of 25% of
Sportev Ltd, owner of sports webcaster sportev.com. While Media
Content Development Ltd seeks to build asset value through this
investment, Media Content Sports Media Advisors benefits from
ongoing fees emanating from this relationship.
Since the financial year in question, Media Content has also
announced its joint-venture to create an online marketplace for
the trading of sports television and media rights,
sportsmediarights.com, and the company has also confirmed the
opening of a Media Content office in Hong Kong to target the
fastest growing sports media region in the world.
As regards the financial results, Media Content recorded
revenues of £328,989, expenses of £930,745, as well as an
exceptional item (representing the prudent write-off of the
remaining goodwill associated with the reversal of Media Content
Limited) thus producing a net loss of £5,225,289. The full
balance of the goodwill on the reversal of Media Content Limited
has been written off in the current year and amounts to
£4,706,284.
Looking ahead, Media Content intends to continue to develop
strategic and advisory relationships with the leading brands in
the marketplace. As these brands build revenues and value,
Media Content benefits correspondingly.
Moreover, Media Content will continue to look at expanding its
capabilities from its London and Hong Kong bases in order to
offer clients more global coverage as appropriate. Importantly,
Media Content has clearly made its presence felt at the
international sports media table. I am confident that the
company is poised to deliver the value to its shareholders which
this privileged position may confer.
Robert Montgomery
Chairman
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Year ended 30 June 2000
Year 19 June
ended 1998 to
30 June 30 June
2000 1999
£ £
TURNOVER 328,989 40,555
Administrative expenses
Exceptional item:
Amortisation of goodwill (4,706,284) (240,750)
Other administrative expenses (930,745) (593,076)
----------- -----------
(5,637,029) (833,826)
----------- -----------
OPERATING LOSS (5,308,040) (793,271)
Loss on disposal of - (300,000)
subsidiary
Interest receivable and 82,751 32,625
similar income
Interest payable and similar - (548)
charges
LOSS ON ORDINARY ACTIVITIES
BEFORE AND AFTER TAXATION ----------- -----------
BEING RETAINED LOSS FOR THE (5,225,289) (1,061,194)
YEAR =========== ===========
Basic loss per share (pence) (0.9) (0.5)
=========== ============
Diluted loss per share (0.9) (0.5)
(pence) =========== ============
All of the company's operations were classified as
continuing in the year.
There were no other recognised gains or losses other than
shown above.
CONSOLIDATED BALANCE SHEET
Year ended 30 June 2000
2000 1999
£ £
FIXED ASSETS
Intangible assets - 4,706,284
Tangible assets 32,389 26,750
Investments 375,102 -
--------- ---------
407,491 4,733,034
--------- ---------
CURRENT ASSETS
Debtors 69,677 19,204
Cash at bank and in hand 4,190,385 440,009
--------- ---------
4,260,062 459,213
CREDITORS: amounts falling
due (74,969) (44,924)
within one year --------- ---------
NET CURRENT ASSETS 4,185,093 414,289
--------- ---------
TOTAL ASSETS LESS CURRENT
LIABILITIES 4,592,584 5,147,323
========= =========
CAPITAL AND RESERVES
Called up share capital 6,359,114 5,812,500
Share premium 4,519,953 396,017
Profit and loss account (6,286,483) (1,061,194)
--------- ---------
EQUITY SHAREHOLDERS' FUNDS 4,592,584 5,147,323
========= =========
These financial statements were approved by the Board of
Directors on 30 November 2000.
CONSOLIDATED CASH FLOW STATEMENT
Year ended 30 June 2000
Year 19 June
ended 1998 to
30 30
June June
2000 1999
£ £
Net cash outflow from operating (566,965) (654,932)
activities
Returns on investments and 82,751 32,077
servicing of finance
Capital expenditure and financial (435,960) (28,533)
investment
Acquisitions and disposals - 272,880
---------- --------
NET CASH OUTFLOW BEFORE FINANCING (920,144) (378,508)
FINANCING 4,670,550 818,517
---------- --------
INCREASE IN CASH 3,750,376 440,009
========== ========
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
Year ended 30 June 2000
Year 19 June
ended 1998 to
30 30
June June
2000 1999
£ £
Increase in cash in year/period 3,750,376 440,009
Net funds at beginning of 440,009 -
year/period
--------- -------
Net funds at end of year/period 4,190,385 440,009
========= =======
RECONCILIATION OF MOVEMENTS IN CONSOLIDATED SHAREHOLDERS'
FUNDS
Year ended 30 June 2000
2000 1999
£ £
Net funds at 1 July 1999/19 June 5,147,323 -
1998
Loss for the financial year/period (5,225,289) (1,061,194)
Shares issued in the year/period 4,670,550 6,208,517
--------- ---------
Net funds at 30 June 4,592,584 5,147,323
========= =========
ENQUIRIES:
Jean-Paul de la Fuente 0702 1136550
Media Content PLC
Nick Oborne 0207 601 1000
Square Mile Communications