Interim Results - 6 Months to 31 December 1999
Media Content PLC
7 April 2000
MEDIA CONTENT PLC
INTERIM REPORT SIX MONTHS ENDED 31 DECEMBER 1999
CHAIRMAN'S STATEMENT
Dear Shareholders
I am pleased to announce Media Content PLC's results for the
six month period ended 31 December 1999; its first full six
months of trading since the reverse flotation of Media
Content Limited in March 1999.
Although still a very young company, Media Content PLC has
been able to establish itself as a significant independent
player in the sector.
Following are highlights of the company's recent activities
through its wholly owned subsidiary Media Content Sports
Media Advisors Limited, much of which have not yet impacted
the company's revenues:
- The New Zealand Rugby Football Union, the governing
body of New Zealand Rugby and of the world-famous All-
Blacks has appointed Media Content to act as its media
rights advisor for all television and media issues, in
an agreement that includes a priority investment opportunity
for Media Content in any eventual NZRFU media spin-offs;
- In pioneering the move to find new revenue streams for
rightsholders, Media Content has secured a contract with
AirTV, a US-based company which plans to provide a network
of live programming to airplanes;
- As part of Media Content's ongoing selected-markets
partnership with World Wrestling Federation Entertainment,
Inc. ('WWFE'), one of the most successful sports
entertainment franchises in the world and itself a recent
NASDAQ IPO, a contract to launch WWFE programming in France
was signed with Canal Plus, Europe's biggest pay TV company;
- Media Content is acting on behalf of other
rightsholders, such as the Sydney 2000 Paralympics, whereby
it is contracted to carry out a global sales campaign;
- The company continues to advise The International
Football Channel on a fee and equity basis and undertook
to advise on securing the rights necessary for the March
8th launch of this exciting project
The ability to build value as a partner and adviser to
sports broadcasters and rightsholders is being validated by
the scope of the Media Content PLC group's current
activities in the traditional sports media rights market.
Moreover, the group is fortunate enough to be in the middle
of an exploding market and is moving swiftly to secure its
position as one of the key participants in the shift to the
digital economy for the sports media sector.
The Board has reasoned that international markets are poised
for tremendous growth in their respective digital economies
- whether via the internet or digital television - and that
sports-related content will play a pivotal role in the
development of many enterprises just as it has for Pay TV.
In its aims to build shareholder value, the Media Content
PLC group maintains a bias for building equity stakes in
high growth businesses - from both the old and new media
spheres.
Turnover for the six months to December 1999 was £96,000,
and expenses were £284,000, resulting in an operating loss
of £188,000.
Media Content PLC has successfully raised further capital in
the reporting period to fuel its growth strategy, using the
proceeds to grow organically and to consider and develop a
profile of strategic partnerships and investments. In this
vein, investment subsidiary Media Content Development
Limited recently announced its acquisition of a 25% stake in
the new sports webcasting start-up, Sportev Limited.
Finally, it is with great pleasure that I highlight the
February 7th 2000 announcement that Leonard M. Fertig has
joined the board of Media Content PLC as a Non-Executive
Director. Len is the founder and former CEO of Central
European Media Enterprises, which he successfully listed on
NASDAQ and helped to grow its market capitalisation to
US$750m, and is a key player on the European media scene.
Also included in the February 7th 2000 announcement was the
retirement of Michael Edelson from the Board of Media
Content PLC, whom I would like to thank for his guidance and
service.
In all, I am confident that Media Content PLC will continue
to stake its claim to an important part of this sports media
marketplace.
Robert Montgomery - Chairman
PROFIT AND LOSS ACCOUNT
For 6 months to 31 December 1999
Note
6 months to Period ended Period ended
31 December 31 December 30 June
1999 1998 1999
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
TURNOVER 2 96 - 41
___________ ___________ ____________
Administrative expenses
Amortisation of goodwill 3 - - (241)
Amount written off
investments 3 - (300) -
Other administrative expenses (284) (163) (593)
___________ ___________ ____________
(284) (463) (834)
___________ ___________ ____________
OPERATING LOSS (188) (463) (793)
Loss on disposal of subsidiary 3 - - (300)
Interest receivable and
similar income 5 20 33
Interest payable and similar
charges - - (1)
___________ ___________ ____________
LOSS ON ORDINARY ACTIVITIES
BEFORE TAXATION (183) (443) (1,061)
Tax charge on loss on ordinary
activities - - -
___________ ___________ ____________
LOSS ON ORDINARY ACTIVITIES
AFTER TAXATION BEING RETAINED
LOSS (183) (443) (1,061)
=========== =========== ============
Basic loss per share
(pence per share) 4 (0.0003) (0.0055) (0.0048)
=========== =========== ============
Diluted loss per share
(pence per share) 4 (0.0003) (0.0055) (0.0048)
=========== =========== ============
All of the company's operations were classified as acquisitions in the period.
There were no other recognised gains or losses other than shown above.
BALANCE SHEET
Note
At At At
31 December 31 December 30 June
1999 1998 1999
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
FIXED ASSETS
Intangible assets 1 4,574 - 4,574
Tangible assets 24 - 27
Investments 1 47 250 -
___________ ___________ ____________
4,645 250 4,601
CURRENT ASSETS
Debtors 133 9 151
Cash at bank and in hand 1,666 747 440
___________ ___________ ____________
1,799 756 591
CREDITORS: amounts falling due
within one year (21) (32) (45)
___________ ___________ ____________
NET CURRENT ASSETS 1,788 724 546
___________ ___________ ____________
TOTAL ASSETS LESS
CURRENT LIABILITIES 6,423 974 5,147
=========== =========== ============
CAPITAL AND RESERVES
Called up share capital 5 6,138 985 5,812
Share premium 5 1,529 432 396
Profit and loss account (1,244) (443) (1,061)
___________ ___________ ____________
EQUITY SHAREHOLDERS' FUNDS 6,423 974 5,147
=========== =========== ============
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
Note
6 months to Period ended Period ended
31 December 31 December 30 June
1999 1998 1999
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Loss on ordinary activities
after taxation (183) (443) (1,061)
Shares issued in the period 1,459 1,417 6,208
___________ ___________ ____________
1,276 974 5,147
Opening Shareholders' funds 5,147 - -
___________ ___________ ____________
Closing shareholders' funds 6,423 974 5,147
=========== =========== ============
NOTES TO THE UNAUDITED INTERIM RESULTS
1. ACCOUNTING POLICIES
With the following exceptions, the interim results have been prepared on a
basis consistent with the accounting policies stated in the 30 June 1999
Annual Report and Financial Statements:
Goodwill
With effect from 1 January 2000 the trade of Media Content PLC was transferred
back to Media Content Sports Media Advisors Limited (formerly Media Content
Services Limited). Following this transfer the goodwill that had previously
arisen has been eliminated from the accounts and transferred back to cost of
investment and thus will not arise in the next Annual Report and Financial
Statements. Goodwill therefore has not been amortised in this Interim Report.
Investments
Investments held as fixed assets are stated at cost less provision for any
permanent diminution in value. Investment acquisitions in the current period
relate to a minority interest acquired in Bedford Communications Inc., a
company incorporated in Canada.
Basis of preparation
This Interim Report does not constitute full accounts within the meaning of
Section 240 of the Companies Act 1985.
The results for the period ended 30 June 1999 are extracted from the latest
audited accounts approved by the Members at the Annual General Meeting and
delivered to the Registrar of Companies. The report of the auditors, Deloitte
& Touche, contained in these accounts, was unqualified. The accounts for the
six months ended 31 December 1999 and 31 December 1998 are neither audited nor
reviewed.
Copies of this interim statement are available for inspection at the Company's
registered office.
2. ANALYSIS OF TURNOVER, OPERATING LOSS AND NET ASSETS
All of the company's operations derive from the provision of sports media
advice. A geographical analysis of operations is given below:
Operating Net
Turnover loss Assets
'000 £'000 £'000
Geographical analysis by origin
United Kingdom
6 months to 31 December 1999 96 (188) 6,423
=========== =========== ============
Period ended 31 December 1998 - (463) 974
=========== =========== ============
Period ended 30 June 1999 41 (793) 5,147
=========== =========== ============
Geographical analysis of turnover
by destination
North America
6 months to 31 December 1999 96
===========
Period ended 31 December 1998 -
===========
Period ended 30 June 1999 41
===========
3. EXCEPTIONAL ITEMS
Amortisation of Goodwill
The charge in the audited financial statements to 30 June 1999 represents the
amortisation of the goodwill on the transfer of trade from Media Content
Sports Media Advisors Limited (formerly Media Content Services Limited) to
Media Content PLC. A charge has not been made this period as the trade was
transferred back to Media Content Sports Media Advisors Limited (formerly
Media Content Services Limited) with effect from 1 January 2000.
Loss on disposal of subsidiary
The loss on disposal of subsidiary in the audited financial statements to 30
June 1999 represents the disposal of Quaser Sports Limited. The acquisition
was not consolidated into the group accounts as exemption was claimed under
FRS 2 since the company had been held with a view to subsequent resale.
Amount written off investments
The amount written off investments in the unaudited profit and loss account
for the period ended 31 December 1998 represents the provision for the
permanent diminution in value of the investment in Quaser Sports Limited.
4. LOSS PER SHARE
Basic
The loss per share figure for the 6 months to 31 December 1999 is based on the
loss for the period on ordinary activities after taxation of £ 183,000 (1998
interim : £ 443,000; 1998/99 final: £ 1,061,000).
The weighted average number of shares used in the calculation of basic
earnings per share was 582,798,913 shares ( 1998 interim 81,233,334 shares;
1998/99 final 221,787,899 shares).
Diluted
The weighted average number of shares used in the calculation of diluted
earnings per share was 582,798,913 (1998 interim 81,233,334 shares; 1998/99
final 221,787,899 shares). The number of shares reflects the share options in
existence at the respective dates.
5. SHARE CAPITAL
On 13 December 1999, the company issued 2,500,000 ordinary shares of 1p each
at 2p per share for cash following the exercise of share options.
On 23 December 1999, the company placed 30,000,000 ordinary shares of 1p each
at 5p per share for cash.
6. YEAR 2000
The directors continue to be alert to the potential risks and uncertainties
surrounding the Year 2000 issue. As at the date of this report, the directors
are not aware of any significant factors which have arisen, or that may arise,
which will affect the activities of the business; however the situation is
still being monitored. Any future costs associated with this issue cannot be
quantified but are not expected to be significant.
OFFICERS AND PROFESSIONAL ADVISORS
DIRECTORS
R B Montgomery (Chairman)
J P de la Fuente (Chief Executive Officer)
J F Denis (Managing Director)
M Edelson (Non-Executive) (Resigned 7 February 2000)
L Fertig (Non-Executive) (Appointed 7 February 2000)
SECRETARY
R B Montgomery
REGISTERED OFFICE
29 Pall Mall Deposit
124-128 Barlby Road
London
W10 6BL
BANKERS
Barclays Bank PLC
27 Soho Square
London
W1A 4WA
SOLICITORS
Stephenson Harwood
One St Paul's Churchyard
London
EC4M 8SH
NOMINATED ADVISER REGISTRAR
Apax Partners & Co. Capital Limited Northern Registrars Ltd
15 Portland Place Northern House
London Woodsome House
W1N 3AA Fenay Bridge
Huddersfield
HD8 0LA
NOMINATED BROKER AUDITORS
Rowan Dartington & Co. Limited Deloitte & Touche
Colston Tower Hill House
Colston Street 1 Little New Street
Bristol London
BS1 4RD EC4A 3TR