GON Galleon Hldgs

 

TIDMGON 
 
RNS Number : 6395T 
Galleon Holdings PLC 
30 September 2010 
 

 
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| Date:          | 30 September 2010                                 | 
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| On behalf of:  | Galleon Holdings plc ('Galleon', 'the Company' or | 
|                | the 'the Group')                                  | 
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| For immediate  |                                                   | 
| release        |                                                   | 
+----------------+---------------------------------------------------+ 
 
Galleon Holdings plc 
Trading Update 
 
Galleon Holdings plc (AIM: GON), the AIM listed entertainment media company 
developing and producing multi-platform properties with a focus on emerging 
markets, wishes to update the market in relation to trading for the year ended 
30 September 2010. 
 
Full year results will be below market expectations with no improvement likely 
on the half year results. The Board had expected to meet market expectations by 
signing some key media deals in the second half of this year. Whilst there was 
an expectation that these deals would be signed before the year end, and despite 
reaching very late stages of negotiation, it is apparent today that these deals 
will not be signed within this financial year. The Company will enter MIPCOM, 
the world's biggest entertainment market, with a strong portfolio of properties 
and the Board feels confident that the deals it is currently negotiating can be 
signed in the near future. The cash balance at 30 September 2010 is expected to 
be approx GBP2.7m. 
 
Galleon Media 
Galleon is pleased to announce the sale of territory rights for Galleon's 
content library to Estragia Global for the Latin American market. Under the 
terms of the agreement, Estragia Global will act on behalf of Galleon in Latin 
America. Galleon in turn receives royalties from content exploited in the 
territory. It is the expectation of the management that this deal will add 
significant value to the Company over the next few years as the Company's brands 
become established in these markets. This franchise approach is something that 
Galleon intends to replicate in other emerging markets, the principle being that 
these markets are best suited to local operators negotiating broadcast and 
sponsorship deals. The deal will also give Galleon access to major consumer 
brands for both media projects and Croco's product based business. 
Despite not completing the deals previously mentioned, the media division looks 
stronger than ever. Format sales of Super Soccer Star, a franchise deal for 
Latin America across Galleon's properties and a second series option deal for 
Apollo's Pad have driven strong revenues for the division. 
There has been some slippage on three projects for a variety of reasons; Super 
Fashion Stars, Apollo's Pad and Sokator-442. This has resulted in rights sales 
planned for the second half of the year not being realised. However, given the 
discussions to date the management feels confident that these deals will be 
concluded in the coming months. 
Galleon will also go into MIPCOM with a new property available for sale, Super 
Golf Star ("SGS"). SGS is produced in association with Grupo Ochoa, the Mexican 
based operator of the Ladies Professional Golf Association (LPGA) events and 
manager of Lorena Ochoa, the world number one golfer between 2006 and 2009, who 
will personally appear in the TV show. 
China Digital Operations 
The Group continues to transition the China digital operation away from 
traditional low margin mobile activities, focusing efforts on higher value 
branded activities and content. The embedded business in China remains 
challenging and as such the Company continues to focus both on higher value 
offerings and building more strategic relationships with partners like China 
Mobile, the largest mobile operator in China with more than 500 million 
subscribers and Tianyu, China's leading producer of talent shows, to provide 
high value multiplatform entertainment specifically for mobile. 
In May of this year Galleon set up its online operation enabling the Company to 
manage online games and also act as an online advertising agency. This has taken 
more time than the Group had anticipated to become fully operational which has 
had a negative impact on this year's profit. The online sector is the fastest 
growing sector of the China media marketplace. The Board therefore believes that 
the investment and changes made this year was necessary to seize upon the 
opportunities of the market and will contribute greatly to the Company in the 
long term. 
Croco 
Croco's revenues for the year have been impacted by the uncertainty around a 
sustained economic recovery amongst Croco's client base. With Ferrero being 
secured as a new client the business looks stronger than it has in the past 12 
months. 
Outlook 
 
Despite a difficult year, the Board feels that the investment in intellectual 
property and the online operation in China leave the Group in a strong position 
to return to profitability next year. 
 
Enquiries: 
 
+--------------------------------------+----------------------------+ 
| Galleon Holdings plc                 |         www.galleonplc.com | 
+--------------------------------------+----------------------------+ 
| Stephen Green, Chief Executive       |         Tel: 020 8742 3636 | 
+--------------------------------------+----------------------------+ 
|                                      |                            | 
+--------------------------------------+----------------------------+ 
| Cenkos Securities (Nominated Adviser |                            | 
| & Broker)                            |                            | 
+--------------------------------------+----------------------------+ 
| Ken Fleming / Jon Fitzpatrick        |  Tel: 0131 220 9772 / 0131 | 
|                                      |                   220 9773 | 
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|                                      |                            | 
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| Redleaf Communications               |     Galleon@redleafpr.com  | 
+--------------------------------------+----------------------------+ 
| Mike Ward / Rebecca Sanders-Hewett / |         Tel: 020 7566 6700 | 
| Luis Mackness                        |                            | 
+--------------------------------------+----------------------------+ 
 
 
Notes to Editors: 
ABOUT GALLEON HOLDINGS 
Galleon Holdings plc creates and distributes multi-platform branded 
entertainment properties focused on the emerging markets, in particular China 
and South East Asia. The entertainment properties are designed to establish a 
direct, interactive relationship with the viewer. 
Television in China reaches approximately 98% of the population of 1.3 billion. 
Mobile phone penetration is also high, with over 500 million subscribers and 
with over 300 million people online, China is now the largest online market in 
the world.  Huge TV audiences and growing interactive platform access presents a 
substantial opportunity for Galleon to benefit from the popularity and demand 
for interactive entertainment and game shows. China is forecast to become the 
world's fifth largest advertising market. 
In October 2007 Galleon acquired Phoenix, a Hong Kong based media solutions 
company, which specialises in the provision of interactive broadcast television 
services that enable broadcasters in China and South East Asia to provide 
interactive entertainment for audiences to access through TV, online and mobile. 
In February 2008 Galleon acquired Yunbo, a mobile service provider in China, 
strengthening the Company's ability to provide Chinese broadcasters with a 
complete media solution for multi-platform entertainment.  Galleon now has total 
control over the interactive content, its delivery to the consumer, data capture 
and the billing process. 
Galleon develops entertainment formats for children, families and young adults. 
These include: 
Y Super Soccer Star - an interactive family targeted football talent show, 
produced in association with Chelsea Football Club.  The show has aired 
successfully in China and Malaysia.  Format rights have been sold for Eastern 
Europe, Scandinavia, Turkey, India, Middle East and Vietnam to partners 
including IMG and Media Star Global. 
Y Super Fashion Stars - a multiplatform entertainment property that includes a 
reality TV show aimed at 16-45 year olds with 60 contestants working together as 
a designer, stylist and model. Each team is slowly eliminated over the series 
for the prize of showcasing in London during London Fashion Week in the Fashion 
Fringe at Covent Garden venue. 
Y Skunk Fu! - a comedy action animated TV show for kids aged 6-11 which airs in 
100+ territories including Cartoon Network(US), the BBC(UK), Disney Latin 
America, Cartoon Network Asia and Super RTL(Germany). 
Y Apollo's Pad - a multiplatform young adult sitcom that airs on Bite TV in 
Canada and includes a content rich online offering. 
Y Sokator-442 - a multi-player intergalactic football (soccer) management game 
that combines tactical thinking with fantasy/sci-fi gameplay. 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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