Joint Venture Announcement
10 Mai 2010 - 4:00PM
UK Regulatory
TIDMINFS
RNS Number : 6414L
Infoserve Group PLC
10 May 2010
Infoserve Group plc
INFOSERVE AND ILIFFE NEWS & MEDIA ANNOUNCE JOINT VENTURE TO OFFER INTERNET AND
PRINT ADVERTISING PACKAGE
Infoserve Group Plc ("Infoserve"), the online local business search and
directory specialist, is pleased to announce that it has today entered into a
joint venture agreement with Iliffe News and Media Limited ("INML"), the media
arm of Yattendon Investment Trust with interests in local media including
newspaper publishing and television.
Under the agreement, a joint venture company ("2i Local") will offer SMEs the
opportunity to purchase a combined internet and print advertising package. This
will give businesses guaranteed exposure to their target market through online
local search and local newspaper coverage. Infoserve and INML will each own 50%
of the issued share capital of 2i Local.
The establishment of the joint venture follows a successful seven-month trial in
which 2i Local has been offering the new hybrid advertising solutions to
businesses in seven separate locations in which INML provides a local newspaper.
The results of the pilot have been highly encouraging, leading to both
increased classified print revenue and greater conversion of web customers
through the combined sales offer. The Board of 2i Local is confident therefore
that there is a strong market opportunity for a one-stop marketing solution for
SMEs that combines the search capabilities of the web with the visibility of
local newspaper advertising.
The Directors of Infoserve believe that, although the prospects for the joint
venture are encouraging, as a result of the initial start-up costs of the joint
venture, Infoserve's earnings for the year ending 31 March 2011 will be lower
than previously expected.
Commenting on the joint venture, David Fordham, chief executive, Iliffe News and
Media, said,
"We have the experience of providing local businesses with tailored and
innovative print solutions, whereas Infoserve can help them to be found quickly
and easily when people search for them on the web. It makes sense therefore to
combine our expertise to give local businesses and tradesmen a cost effective
'best of both worlds' solution.
"We will now be discussing the concept with newspaper publishers across the UK
and offering them a turnkey solution to reinvigorate and substantially leverage
their trades and business advertising sections. This new service will help to
bring publishers valuable new revenue as the industry emerges from a very
difficult trading period. The trial has shown conclusively how this joint
offering can transform the classified sector within local press."
Infoserve's executive chairman, Steve Barnes, added,
"The trial confirmed that there is great demand from businesses for blanket
coverage across print media as well as online. The reputation of the newspaper
group in its circulation areas and our knowledge of online marketing is a very
powerful and credible combination.
"With the favourable customer response we received during the trial, together
with the growing amount of repeat business, we are extremely confident that we
have found an advertising model which will prove popular with SMEs who are
looking for good value and a real return on their investment."
Following the successful trial, 2i Local will now roll out the offering to local
businesses across a further 17 newspaper regions covered by INML over the next
few months.
Ends.
For further information, please contact:
Infoserve Group plc www.infoservegroup.com
Steve Barnes, Executive Chairman
Steve.barnes@infoserve.com Tel: 0113 238 6200
Jonathan Simpson, Finance Director
Jonathan.simpson@infoserve.com Tel: 0113 238 6200
Nominated Adviser
WH Ireland Limited
Robin Gwyn Tel: 0161 832 2174
Iliffe News & Media Limited
David Fordham, Chief Executive
david.fordham@yit.co.uk Tel: 01223 226 081
Yattendon Investment Trust
Lisa Gordon, Investment Director
lisag@yit.co.uk Tel: 01635 203 929
This information is provided by RNS
The company news service from the London Stock Exchange
END
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