Trading Update
16 Juli 2009 - 8:00AM
UK Regulatory
TIDMBRST
RNS Number : 7527V
Burst Media Corporation
16 July 2009
16 July 2009
Burst Media Corporation
Trading Update
Burst Media Corporation ("Burst" or "the Company"), the international online
advertising services company, today announces an update on trading ahead of the
announcement of its results for the six months ended 30 June 2009, which is
scheduled for 24 September 2009.
Trading for the six months to 30 June 2009 in line with management expectations
The Company completed the half year in line with management's expectations,
despite operating in a very challenging trading environment. As anticipated by
the Board, the Company was impacted by a general slowdown in ad spend in the
first quarter, however trading improved significantly in the second quarter.
Total revenue for the first half of the current year is estimated to be
approximately US$12.1m, down approximately US$1.3m compared to the same period
last year. This is due to the adConductor business where sales in the half are
expected to be US$1.3m (2008: US$ 2.7m). adConductor was affected by the loss of
the significant TACODA account, which was cancelled when AOL acquired TACODA at
the end of 2007 and decided to take this function in-house. Revenue from
adConductor customers other than TACODA increased year on year by over 70%. The
Board is also pleased to announce that adConductor added four significant new
customers in the first half including Wolters Kluwer, the international
publisher of scientific and medical journals.
Revenue from the Company's media businesses, Burst Network and Burst Direct, is
expected to be US$10.8m in the first half (2008: US$10.7m). The general slowdown
in ad spending that began in the last quarter of 2008 impacted significantly on
the Company's media business in the first quarter of the current year. However,
in the second quarter, as negative economic factors began to abate, the Company
achieved a 23% year-over-year growth in Network and Direct revenue resulting in
an overall performance at similar levels to the same period in 2008.
As of 30 June 2009, the Company had US$9.4m in cash on its balance sheet (2008:
US$11.1m). During the period the Company utilised US$749,000 of its cash
resources to re-purchase and retire a total of 12.4 million common shares. It is
the Board's intention that the Company will continue to re-purchase shares when
appropriate. However, the Board considers it unlikely that further re-purchases
will take place prior to the announcement of the Company's interim results on 24
September 2009. In addition, the Board notes that the Company has capitalised
US$1.3m in software development costs since 30 June 2008.
The Company continues to actively and opportunistically look for investments
that enhance Burst's core network business.
Commenting, David Hanger, Chairman of the Board of Directors, said,
"Anticipating the weak economy at the start of the year in our plans, Burst has
performed in line with the Board's expectations in the first half of 2009 and is
currently on-track for the full year with good prospects in each of our business
units. We are in strong fiscal shape with no debt and significant cash reserves
and are looking forward to executing on our plan for the remainder of 2009."
Note concerning forward looking statements
This press release contains "forward-looking" statements that involve risks,
uncertainties and assumptions. If the risks or uncertainties ever materialize or
the assumptions prove incorrect, our results may differ materially from those
expressed or implied by such forward-looking statements. All statements other
than statements of historical fact could be deemed forward-looking, including,
but not limited to, any projections of financial information; any statements
about historical results that may suggest trends for our business; any
statements of the plans, strategies, and objectives of management for future
operations; any statements of expectation or belief regarding future events,
technology developments, or enforceability of our intellectual property rights;
and any statements of assumptions underlying any of the foregoing.
These statements are based on estimates and information available to us at the
time of this presentation and are not guarantees of future performance. Actual
results could differ materially from our current expectations as a result of
many factors, including but not limited to: the unpredictable nature our rapidly
evolving market and fluctuations in our business; the effects of competition;
and any adverse changes in our customers' business. These and other risks and
uncertainties associated with our business are described in our filings on AIM.
We assume no obligation and do not intend to update these forward-looking
statements.
Enquiries:
Burst Media Corporation
Jarvis Coffin, Chief Executive Officer+1 781-852-5271
Steven Hill, Chief Financial Officer +1 781-852-5481
Hudson Sandler
Nick Lyon / James White +44 (0) 20 7796 4133
Altium
Tim Richardson / Paul Chamberlain +44 (0) 20 7484 4040
This information is provided by RNS
The company news service from the London Stock Exchange
END
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