RNS Number:5865E
2waytraffic N.V.
27 September 2007
27 September 2007
2waytraffic ("2waytraffic" or the "Company")
Interim Results 2007 for the six months to 30 June 2007
2waytraffic, the AIM listed interactive media content provider, today issues its
interim results for the six months to 30 June 2007.
Highlights
* Turnover increased 341% to EUR 39.5 million (#26.6 million) versus EUR 9.0
million (#6.0 million) in the first half of 2006 driven by increasing demand
for entertainment content, geographic expansion, and the acquisition of "Who
Wants To Be A Millionaire?" (WWTBAM) at the end of last year.
* Underlying normalised EBITDA* of EUR 9.8 million (#6.6 million), versus
EUR 1.9 million (#1.3 million) in the first half of 2006.
* Successful integration and re-branding of Celador International into
2waytraffic international and the successful launch of UK operating company
2waytraffic UK.
* WWTBAM performed strongly with new business developments including a new
deal in China and re-launches in the USA, India, Serbia, Slovenia and
Slovakia.
* A new WWTBAM spin off format called "50-50" has been developed alongside
several interactive products which are now ready to be rolled out, and has
recently been sold in four territories.
* Emexus and the mobile content division merged and re-launched as a new
company called 2waytraffic mobile. The Mobile division saw first half
turnover grow from EUR 3.8 million (#2.5 million) in the first half of 2006
to EUR 6.8 million (#4.6 million).
*Note: Underlying normalised EBITDA represents the Group operating results after
adjusting for impairment charges, restructuring costs, share option costs,
depreciation and amortisation
Commenting on the results Kees Abrahams, CEO of 2waytraffic, said:
"2waytraffic has been transformed during the last year with the successful
acquisition and subsequent integration of WWTBAM and Celador. Financially, the
first half has been impacted by the well publicised issues around participation
TV in 2waytraffic's European business. This has overshadowed some significant
progress in our core businesses where there has been good organic growth across
the Group in the first half with all three divisions growing as we continue to
implement our strategy of developing new convergent formats across multiple
media platforms, selling our content in new markets as well as making and
integrating acquisitions."
"The second half has started with trading in line with our revised expectations.
In participation TV, we continue to develop our content in accordance with
regulations on a territory by territory basis and consistently provide
broadcasters with the content their viewers enjoy. Across the Group, our formats
are very popular with broadcasters and viewers alike and format sales remain
strong. As a result, the Board is confident of the prospects for the enlarged
Group."
Enquiries:
2waytraffic +31 (0) 35 750 80 00
Kees Abrahams/Jonni Abbenhuis
Investec Investment Banking +44 (0) 20 7597 4000
Andrew Craig / Ben Poynter
Financial Dynamics +44 (0) 20 7831 3113
Charles Palmer / Nicola Biles
Chief Executive's Statement
Overview and strategy
During the first half of the financial year 2waytraffic has achieved several
significant milestones in the further roll out of the Company's strategy and the
enlarged business is now structured for further growth in 2008.
As the Board stated at the time of its re-admission in December 2006, the focus
in the first half of 2007 has been on thoroughly and carefully integrating the
acquired businesses and re-structuring the organisation to maximise the benefits
from the expected synergies. Good progress has been made to date and the Company
expects to see the full benefits of these changes in 2008.
The results show overall turnover growth of 341%, increasing from EUR 8.9
million (#6.0 million) in H1 2006 to EUR 39.5 million (#26.6 million) in H1
2007. Reported operating profit increased from a loss of EUR 0.6 million (#0.4
million) to a result of EUR 0.08 million (#0.05 million) compared to the first
half of 2006 with underlying normalised EBITDA increasing from EUR 1.9 million
(#1.3 million) to EUR 9.8 million (#6.6 million). The overall growth has been
principally driven by the WWTBAM and Celador acquisition and the mobile
division.
The Company's key format WWTBAM performed strongly with several new contract
wins and successful re-launches worldwide. Intellygents formats "Take It Or
Leave It" and "That's The Question" extended their international footprint and
saw several re-commissions. Emexus, integrated with 2waytraffic mobile,
continued strong trading in US in the first half and moved into several new
territories. The digital division is still in its infancy, as expected.
The Company has shown revenue growth across all three divisions. The mobile
division grew 81% in revenue and 36% in gross profit. Television revenue grew
540%, with gross profit growth slightly lower at 480%, principally due to the
well publicised issues around participation TV in 2waytraffic's European
business.
2waytraffic's strategy is to operate a variety of business models including
television production, format distribution, merchandising, mobile content and
web based content for multiple platforms. Organic creative development and
acquisitions form the backbone of delivering against this strategy. In the first
half, our creative team focused on developing new cross media formats as well as
further brand extensions of our key format WWTBAM. A new WWTBAM spin off format
called "50-50" has been developed alongside several interactive products which
are now ready to be rolled out, and has recently been sold in four territories.
Several initiatives which demonstrate our unique convergent approach include the
successful exploitation of a mobile game that originated as our TV format "Game
On". Additionally our mobile division is developing a digital consumer portal to
supply richer content than traditional mobile offerings. In the US we have
successfully trialled an alternative to traditional participation TV that is
free to the user and allows advertisers to interact directly with the consumer.
Our digital division is working alongside our TV formats division to develop
game add-ons to enhance the content of these TV formats.
Building a strong international distribution network is another important aspect
of our strategy. The launch of 2waytraffic UK has provided us with a presence in
the important UK media market. 2waytraffic mobile further rolled out its
business into Indonesia, Australia and South Africa and we continue to explore
opportunities in new geographies across all divisions, with a focus on North
America and Europe.
In the first half, the Company invested in additional senior management and
staff (specifically in legal, sales and finance) in order to be able to
successfully manage the Company's rapid growth, integration and re-organisation
processes.
Results
Turnover
Total turnover increased by 341% to EUR 39.5 million (#26.6 million) from EUR
9.0 million (#6.0 million) in the first half year of 2006.
In the Television division turnover increased from EUR 5.1 million (#3.4
million) in the first half of 2006 to EUR 32.6 million (#21.9 million) during
2007, growth of 540%. The main contributor to this growth was the acquisition of
WWTBAM and Celador which delivered sales in the first half of 2007 of EUR 21.5
million (#14.4 million). Millionaire sales are in line with expectations whereas
the division performance as a whole was negatively impacted by the well
publicised issues around participation TV in 2waytraffic's European business.
The Mobile division shows strong organic growth with turnover up from EUR 3.8
million (#2.6 million) to EUR 6.8 million (#4.6 million). The division has seen
an increase in media buying costs in the industry and has therefore spent less
than expected on cost of sales, resulting in lower sales and profit than
expected. In absolute terms however the gross profit went up from EUR 1.7
million (#1.2 million) to EUR 2.4 million (#1.6 million).
The Digital division did not make a material contribution to the Group's
turnover in H1 2007.
Gross profit
Gross profit has grown by 304% from a level of EUR 4.6 million (#3.1 million)
for the first half of 2006 to EUR 18.4 million (#12.4 million) for the first six
months of 2007. The gross profit margin has declined from 54% in H1 2006 to 49%
in H1 2007, again driven by the participation TV issues which if adjusted for
would result in gross profit margin for the period being in line with last year.
Operating expenses
Operating expenses grew substantially as a result of necessary investment in
people and infrastructure to meet the demands of the enlarged, rapidly growing
company. As at 30 June 2007 the Company employed 195 employees compared to 105
at the same time last year. With the current team in place the Company now has
capacity for the next stage of growth. Operating expenses contain three
exceptional items amounting to EUR 1.7 million (#1.0 million) restructuring
costs related to the acquisition and integration of WWTBAM and Celador, charges
under the share scheme and an impairment loss on Hiptv.
Amortisation
Amortisation of intangible assets (formats, goodwill and licenses) has increased
to EUR 7.7 million (#5.2 million) from EUR 0.15 million (#0.09 million) in the
same period last year. As expected this figure has increased significantly in
2007 as a result of amortisation on assets in relation to the Millionaire and
Celador acquisition. Acquired formats and order backlog are recognised in profit
or loss on a diminishing balance method basis.
Operating result
Adjusted operating profit increased from EUR 1.7 million (#1.2 million) to EUR
1.8 million (#1.2 million).The reported operating result is a profit of EUR 0.08
million (#0.05 million) an increase on the loss of EUR 0.6 million (#0.4
million) for the first half of 2006 after deducting costs of impairment,
restructuring costs and charges under the share schemes.
Underlying normalised EBITDA grew from a level of EUR 1.9 million (#1.3 million)
for the first half year of 2006 to EUR 9.8 million (#6.6 million) for the six
months to 30 June 2007. Excluding the Belgian contract issue normalised EBITDA
would have amounted to EUR 12.0 million (#8.1 million).
Below you will find the reconciliation between operating result and normalised
EBITDA (unaudited):
EUR 1 January 2006 - 30 1 January 2007 - 30
June 2006 June 2007
unaudited
Operating result -608,265 78,962
EBT 2,364,194 288,802
Impairment - 613,957
Restructuring cost - 791,777
Depreciation 26,064 318,012
Amortisation 145,957 7,703,428
Normalised EBITDA 1,927,950 9,794,938
Profit before tax
Adjusted profit before tax declined from a profit of EUR 1.5 million (#1.1
million) to a loss of EUR 1.0 million (#0.7 million) excluding EBT expenses,
restructuring cost and impairment charges. The loss before tax has been mainly
caused by the amortisation of goodwill relating to the Millionaire and Celador
acquisition, which if adjusted for would result in a profit before tax of EUR
6.7 million (#4.5 million)
Financing charge
The Company's reported financing charge mainly comprises interest on the RBS
multicurrency term loan of EUR 3.0 million (#1.9 million).
Tax
The tax charge for the period amounts to EUR 31,986 (#21,507), a rate of 1.2% on
the profit before tax. The reason for this below average tax charge in the
Netherlands (25.5%) is the carry forward loss that is taken on the Company level
resulting in a deferred tax asset of EUR 4.4 million (#3.0 million) as well as
disallowance of certain non cash charges for tax purposes.
Net result and dividend
The net result for the period ending 30 June 2007 amounts to a loss of EUR 2.7
million (-/- #1.8 million) as compared to a loss of -/- EUR 0.8 million (loss of
#0.6 million) for the first half year of 2006. The Board does not propose to pay
a dividend at this time.
Balance sheet
As at 30 June 2007, the total assets of the Company amounted to EUR 274.3
million (#184.4 million) as compared to EUR 46.9 million (#31.5 million) as at
30 June 2006. The increase in assets mainly consists of the recognition of
intangible assets and goodwill following acquisitions during 2006. At the end of
June 2007 these amounted to EUR 217.5 million (#146.3 million).
The Company has analysed indications for impairment for all other assets as at
30 June 2007 and has concluded that there have been no triggering events to
demand such impairment, except for the goodwill on Hiptv being impaired given
that this company is still in its infancy and insufficient information is
available on long-term profitability at this point
Borrowings
In connection with the acquisition of WWTBAM and Celador, the Company entered
into a loan facility for #60 million (EUR 89.2 million) with the Royal Bank of
Scotland. This is a five year facility, repayable as to #8.4 million (EUR 12.5
million) in 2007 and #12.9 million (EUR 19.2 million) annually thereafter until
2011. The loan is multi currency and was drawn 50% in GBP and 50% in EUR at the
half year end. The loan carries interest at rates linked to a profit over LIBOR
or Euribor. At the time of initial drawing an interest rate swap was entered
into in respect of the Euro element of the loan. Loan repayment for the period
ending 30 June 2007 amounted to EUR 4.2 million (#2.8 million).
The Group also entered into a revolving credit facility agreement with the Royal
Bank of Scotland for a five year period for #10 million (EUR 14.9 million). This
provides funds for working capital and general purposes. At the half year end
there had been no drawdown on this facility.
Cash flow
The cash flow from operating activities amounts to a cash outflow of EUR 4.9
million (#3.3 million). This includes payment of costs incurred at the end of
2006 for the acquisition and funding of WWTBAM and Celador. Also a release of
retained consideration was made to the vendors of the WWTBAM and Celador during
the first half year of 2007 of EUR 13.6 million (#9.1 million).
Earnings per share
Based on the weighted average number of shares for the period ended 30 June 2007
of 130.6 million (30 June 2006: 94.1 million) and the reported net loss for the
first half of EUR 2.7 million, the reported basic loss per share for the Group
amounted to EUR 0.021. The diluted loss per share for the period is EUR 0.022
after allowing for the dilutive effect of approximately 4.7 million shares
expected to be issued in respect of earn outs and share options. The normalised
loss per share amounts to EUR 0.011, whereas normalised diluted loss per share
is EUR 0.013.
Review of operations
2waytraffic is an international developer and exploiter of revenue generating,
cross media content for multiple platforms. The Group currently has sold its
formats into more than 60 territories and has a catalogue of over 200
proprietary formats. In response to the rapidly changing media landscape,
2waytraffic looks to extend the reach of its content by leveraging it across
television, mobile and digital platforms.
Television
With the exception of our participation TV business, our TV production,
interactive, merchandising, formats and completed programme sales performed in
line with the Company's expectations.
The division is making progress with a number of new formats having been well
received by the Company's international broadcast clients. Our newly developed
format "Holiday Fever" received positive early interest and was optioned in
Germany, "The Ring" was optioned in Australia and French producer Starling
optioned 2waytraffic formats "Last One Standing", "Turn Back Your Body Clock",
"High Tension" and "The People Versus".
WWTBAM performed well with new business developments including a new deal in
China and re-launches in the USA, India, Serbia, Slovenia and Slovakia. A new
WWTBAM spin off format called "50-50" has been developed alongside several
interactive products which are now ready to be rolled out, and has recently been
sold in four territories.
In the UK a second series of "Take It Or Leave It" was in production for
Challenge TV. The highly successful game show started airing in Greece and on
Dubai TV which covers 20 Middle Eastern countries and has now been shown in over
25 territories worldwide. "That's The Question" also performed well with new
deals in Finland and the US (Game Show Network) where it has been
re-commissioned for 65 episodes. This summer the format started airing its first
series of 60 episodes in the UK on Challenge TV and continued to perform
strongly in Holland.
Participation TV, which forms a decreasing part of our TV business, has been
negatively affected by significant changes in market conditions due to
regulatory issues, negative publicity and a contractual issue with a Belgium
broadcaster. In Belgium a permit was granted to 2waytraffic's broadcast partner
to air participation TV programmes for one year. The Nordic operation saw the
market share of its Danish broadcast partner significantly reduced by a
re-positioning of the channel and encountered a material delay in the completion
of a contract and reduced call volumes. This caused profitability in this
specific business to decline during the period.
Additionally, as we previously announced, the Company recently supplied
information to the Dutch authorities, at their request, in connection with an
investigation into two broadcasters in the Netherlands regarding their
participation TV compliance. The Company supplies programming to one of the
broadcasters named in the investigation. 2waytraffic has since received written
confirmation that it is not currently under investigation itself. The Board,
nevertheless, has decided to carry out a review of certain of the European
operations in the participation TV part of the business.
Mobile
In the first half year, Emexus and the 2waytraffic mobile division were
integrated into a new company called 2waytraffic mobile to make full use of the
synergy and efficiency benefits from combining the two businesses. The Company
showed continued strong trading in the America's and growth in the EMEA and Asia
Pacific region. Several new products were introduced, such as the TV originated
game show "Game On" which was successfully introduced as a mobile game,
illustrating the Company's strategy of converging content. Additionally the
Company expanded its activities into Indonesia, Australia and South Africa.
Overall the results of 2waytraffic mobile were slightly ahead of our
expectations for the first six months of the year.
Digital
In the digital division, new management was appointed at Hiptv to take our
digital business to the next level. This resulted in a new online game based on
our format "Take It Or Leave It" for Challenge TV and an internet platform for
our new lifestyle format "Your Body and Mind", which was broadcast on RTL4 in
the Netherlands.
Corporate Governance
The Board continues to further professionalise the organization to fully comply
with the Dutch Corporate Governance Code and therefore the Company aims to
finalize a number of corporate governance projects by the end of 2007. Good
progress has been made in the first half with these projects.
Current trading and outlook
Current trading is in line with comments made on 30 August and the stated full
year target of normalised EBITDA of approximately Euro30m. Additionally the Company
is beginning to see the benefits of being a larger organisation in the
international markets which we serve and this is reflected in the good sales
momentum in the second half. As the Company grows, the composition of revenues
will continue to evolve and for this year at least the Company's revenues remain
second half year weighted.
The television division shows a number of new contract wins including a one year
renewal for WWTBAM on UK channel ITV, taking it into 2009, a commission for a
brand new format, "F.A.B.S: Search For A Video Model" by Dutch Broadcaster
Veronica, the re-commissioning of "Brainiest" in Belgium and Russia and various
new participation TV contract wins globally.
WWTBAM continues to perform robustly with licence renewals agreed in a number of
territories including France, Nigeria, Austria and Germany. Australia's Nine is
also bringing WWTBAM back on screen and has re-commissioned the show for a new
series of 30 episodes.
Four deals have already been confirmed for our first WWTBAM spin off format,
"50-50", with Fuji in Japan, Mega Channel in Greece, Endemol Italy and Nine
Network in Australia. The new show will be launched this MIPCOM.
Multiple new deals were closed for the completed UK series of "You Are What You
Eat", including deals with BBC America and BBC Lifestyle in Asia, taking the
total number of countries into which either the completed UK programme or format
has been sold to over 40.
Three new format deals were closed in Russia with TNT Broadcasting Network for a
Russian version of its comedy reality format, "Hypnotic World", and with TV
Channel Russia for home-grown versions of its lifestyle entertainment formats,
"You Are What You Eat" and "Turn Back Your Body Clock".
The interactive and consumer products licensing department has completed a
number of new deals for WWTBAM, including a deal with Ubisoft for the first
Nintendo DS(TM) and Wii(TM) versions of the game. New interactive play along and
home viewer games for WWTBAM have been developed and launched in Denmark and the
UK respectively.
As previously announced, the mobile division encountered a technical issue with
one of the Company's American network partners which resulted in the need for
rebuilding a part of the subscriber database with this carrier. However,
underlying growth across the division remains in line with expectations. The
mobile "Game On" service is performing very well in the US and new territories
have been entered.
For the digital division, Hiptv has built the website around our new reality
show "F.A.B.S.: Search For A Video model". Online casual games were developed
for our formats "That's The Question" and "Last One Standing".
Looking forward, our strategy remains focused on growth through expanding our
intellectual property catalogue as well as extending both our geographic reach
and our talent pool. The Board expects a further execution of the strategy of
leveraging its proprietary content across multiple business models and combining
organic growth with growth through selective acquisitions. In the midterm the
Company is well positioned to be a leading media company in the growing
convergent content market.
Consolidated Income Statement
1 January 2006 - 1 January 2006 - 1 January 2007 -
31 December 2006 30 June 2006 30 June 2007
unaudited
External Sales 29,308,539 8,970,453 39,545,001
Cost of sales -12,467,272 -4,416,260 -21,147,589
Gross Profit 16,841,267 4,554,193 18,397,412
Personnel expenses -4,957,485 -1,627,484 -4,982,981
Other operating expenses -2,814,971 -998,759 -3,619,493
Employee benefit -2,867,930 -2,364,194 -288,802
expenses
Impairment of intangible - - -613,957
assets
Restructuring costs - - -791,777
Depreciation -194,266 -26,064 -318,012
Amortisation -1,570,382 -145,957 -7,703,428
-12,405,034 -5,162,458 -18,318,450
Operating result 4,436,233 -608,265 78,962
Net financing income 41,644 241,282 -2,959,896
Foreign exchange result 337,577 169,911 155,248
Result on sale assets - - 73,984
Loss on partial sale of -1,378 -30,023 -
subsidiaries
Share in profit of joint - - -55,047
ventures
Result before taxation 4,814,076 -227,095 -2,706,749
Income tax benefit/ -1,890,680 -590,947 -31,986
(expense)
Net result for the 2,923,396 -818,042 -2,738,735
period/year
Attributable to:
Equity holders of the 2,918,288 -867,073 -2,749,655
Company
Minority interest 5,108 49,031 10,920
2,923,396 -818,042 -2,738,735
Shares issued 130,396,163 94,078,590 130,621,002
Earnings per share (EUR) 0.04 -0.02 -0.02
Diluted earnings per 0.03 -0.02 -0.02
share (EUR)
Consolidated Balance Sheet
31 December 2006 30 June 2006 30 June 2007
unaudited
Assets
Property, plant and 1,422,910 612,164 1,490,449
equipment
Intangible fixed 229,641,358 10,601,705 221,551,191
assets
Financial assets - 1,013,012 -
Deferred tax assets 3,036,996 419,806 9,896,490
Total non-current 234,101,264 12,646,687 232,938,130
assets
Trade and other 30,961,513 10,597,117 21,094,203
receivables
Receivables from tax - 36,063 1,312,169
authorities
Cash and cash 36,684,242 23,593,713 18,996,266
equivalents
Total current assets 67,645,755 34,226,893 41,402,638
Total assets 301,747,019 46,873,580 274,340,768
Equity
Issued capital 1,303,962 940,786 1,306,210
Share premium 97,435,072 34,794,669 97,816,435
Translation reserve -35,843 - 19,477
Retained earnings 2,381,428 -470,807 5,299,716
Treasury stock - -15,120 -
Unappropriated result 2,918,288 -867,073 -2,749,655
Total equity 104,012,193 34,382,455 101,692,183
attributable to
equity holders of the
parent
Minority interest 9,286 97,949 19,044
Total equity 104,012,193 34,480,404 101,711,227
Liabilities
Long-term 78,571,715 - 61,872,371
interest-bearing
loans and borrowings
Deferred tax 44,732,672 994,811 44,934,228
liabilities
Long-term share based 66,537 92,365 355,339
payments liability
Other long-term 7,763,599 1,325,574 8,202,271
liabilities
Total non-current 131,134,523 2,412,750 115,364,209
liabilities
Investment in joint - - 26,746
venture
Short-term 8,800,567 394,297 20,699,768
interest-bearing loans
and borrowings
Trade and other 52,746,365 6,655,054 25,812,063
payables
Provisions 756,000 - 670,714
Share based payment - 2,570,615 -
liability
Taxes and social 4,297,371 360,460 10,056,041
security
Total current 66,600,303 9,980,426 57,265,332
liabilities
Total liabilities 197,734,826 12,393,176 172,629,541
Total equity and 301,747,019 46,873,580 274,340,768
liabilities
Consolidated Cash flow statement
1 January 2006 - 1 January 2006 - 1 January 2007 -
31 December 2006 30 June 2006 30 June 2007
Note unaudited
Operating result 4,436,233 -608,265 78,962
Depreciation and 1,776,343 172,021 8,635,397
amortisation
Movement in -13,622,109 -651,155 7,518,292
receivables
Movement in current 11,562,396 688,156 -21,260,918
liabilities
Equity-settled share based 2,801,393 52,214 0
payments
Cash-setlled share based 66,537 2,309,980 288,802
payments
Interest received/ 966,081 - -121,204
(paid)
Income taxes -1,890,680 -590,947 -31,986
received/(paid)
Unrealised foreign exchange 0 404,943 0
gain/(loss)
Net cash from operating 6,096,194 1,776,947 (1) -4,892,655
activities
Investments in -1,196,544 -418,113 -311,567
tangibles
Investments in -4,134,253 - -983,338
intangibles
Business combination, net of -131,821,931 -6,826,456 756,119
cash acquired
Investments in - -1,013,012 -39,221
financial assets
Minority interest -633 -30,023 9,758
Movement in deferred tax -694,512 -302,831 -6,657,938
balances
Net cash from investing -137,847,873 -8,590,435 -7,226,187
activities
Issue of share 92,457,679 36,816,781 383,611
capital
Payment of -6,596,611 -3,019,521 -
transaction cost
Treasury stock - -14,742 -
Movement in minority - 35,582 -
interest
Movement in 86,438,899 - 399,530
long-term loans
Repayment of -2,699,456 -2,314,004 -4,162,824
borrowings
Interest received/ -588,238 411,193 -2,838,691
(paid)
Movement in deferred tax 562,638 - -
assets
Movement in other - - 438,672
non-current liabilities
Net cash from financing 169,574,911 31,915,289 -5,779,702
activities
Net cash flow 37,823,232 25,101,801 -17,898,544
Cash and cash equivalents as -1,103,145 -1,103,145 36,684,242
at beginning of period
Effect of exchange rate -35,845 -404,943 210,568
fluctuations on cash held
Cash and cash equivalents as 36,684,242 23,593,713 18,996,266
at end of period
(1) This amount includes a repayment made to the vendors of the
Millionaire and Celador companies during the first half year of 2007
of EUR 13.6 million (#9.1 million).
Notes to the financials
1. Accounting policies
Basis of accounting
The historical financial information has been prepared in conformity with
International Financial Reporting Standards (IFRS) as adopted by the European
Union. IFRS have been applied consistently to all the periods presented, unless
otherwise stated.
The historical financial information is presented in euros (EUR), the Company's
functional and presentation currency. The consolidated historical financial
information has been prepared on a going-concern basis and are prepared on the
historical cost basis, unless otherwise stated. The preparation of financial
information in conformity with IFRS requires management to make judgements,
estimates and assumptions that affect the application of policies and reported
amounts of assets and liabilities, income and expenses.
The estimates and associated assumptions are based on historical experience and
various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making the judgements
about carrying values of assets and liabilities that are not readily apparent
from other sources. Actual results may differ from these estimates. Estimates
and assumptions used in the historical financial information do not take into
account any changes that may or may not occur as a result of a planned public
offering of part of the shares of the Company by its shareholders. The estimates
and underlying assumptions are reviewed on an ongoing basis.Revisions to
accounting estimates are recognised in the period in which the estimate is
revised if the revision affects only that period or in the period of the
revision and future periods if the revision affects both current and future
periods. The accounting policies have been applied consistently by Group
entities.
The accounting policies are in line with those used in the financial information
included in the Annual Report 2006.
2. Segmentation income statement - primary business lines
Television EUR 1 January 2006 - 1 January 2006 - 1 January 2007 -
31 December 2006 30 June 2006 30 June 2007
unaudited
Sales 15,895,261 5,094,566 32,606,822
Cost of sales -7,143,491 -2,345,125 -16,655,949
Gross profit 8,751,770 2,749,441 15,950,873
GP % 55% 54% 49%
Mobile EUR 1 January 2006 - 31 1 January 2006 1 January 2007 -
December 2006 -30 June 2006 30 June 2007
Sales 10,289,139 3,770,405 6,814,814
Cost of sales -4,623,380 -2,020,621 -4,443,414
Gross profit 5,665,759 1,749,784 2,371,400
GP % 55% 46% 35%
Other EUR 1 January 2006 - 31 1 January 2006 1 January 2007 -
December 2006 -30 June 2006 30 June 2007
Sales 3,124,139 105,482 123,365
Cost of sales -700,401 -50,514 -48,226
Gross profit 2,423,738 54,968 75,139
GP % 78% 52% 61%
Consolidated EUR 1 January 2006 - 1 January 2006 1 January 2007 -
31 December 2006 -30 June 2006 30 June 2007
Sales 29,308,539 8,970,453 39,545,001
Cost of sales -12,467,272 -4,416,260 -21,147,589
Gross profit 16,841,267 4,554,193 18,397,412
GP % 57% 51% 47%
This information is provided by RNS
The company news service from the London Stock Exchange
END
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