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Cellcast News

Final results for year ended 31 December 2009

03 June 2010

HIGHLIGHTS

• Revenues increased by 5.1% to £16.8 million, despite a difficult trading environment across the broadcast industry
• Cellcast’s continued substantial investment in additional digital TV distribution channels was fully expensed during the year, resulting in an operating loss of £2.2 million (2008: loss of £0.6 million)
• Loss of the year after taxation of £1.6 million (2008: profit of £0.3 million). Loss per share of 2.1p (2008: profit per share of 0.4p)
• Significant operating savings achieved through renegotiating bandwidth costs and implementing a range of costs saving initiatives in the production and programming departments
• Technology division continued to deliver innovative applications and major systems solutions that are improving margins and creating incremental revenue streams in the UK and licensing opportunities abroad
• Cellcast Asia Holdings, the Company’s 37.5% associate company, reported substantial revenue and earnings growth driven by continued mobile subscriber growth in India (exceeding 10 million per month)
• Introduction of new applications and services and investment in new distribution on Freeview deliver UK traffic, margin growth and positive results in April and May 2010

Julian Paul, Chairman of Cellcast plc, commented:
"We are pleased to report that our 2009 capacity investments and our decision to expense these costs to the detriment of 2009 earnings have already begun to pay off. As of April 2010, we began monetizing both the the Freeview capacity and the new services and applications in which we have been investing. As a consequence the group’s performance was positive during both April and May, a trend which we expect to continue throughout the remainder of 2010. Lastly, but significantly, Cellcast Asia Holdings, which had a remarkable 2009, continues to perform well. The Directors look forward to reporting more fully on current year progress at the 2010 interim announcement stage."

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