Media Corporation Plc
("Media Corp" or the "Group")
Following the conclusion of the first half of the Media Corp's financial year at 31 March 2012 the Company is pleased to provide the following trading update.
In keeping with its stated strategy of selling its underperforming publishing assets the board is pleased to announce the sale of www.onthebox.com and www.forexspace.com and associated domain names for an aggregate of £250,000 payable in cash. The two sites are on the Group's balance sheet at £130,000 and so the sale represents a profit of £120,000 for Media Corp. In addition the directors estimate that the sale will save the Group approximately £350,000 per annum in staff and associated costs. Forexspace has only recently been launched and is yet to generate any material revenues for the Group and Onthebox was loss making in the year to September 2011.
Further to the announcement on 26 January 2012, Media Corp announces that, due to delays in the opening of the Hippodrome Casino, the launch date for the online Joint Venture has been delayed and is now expected to be in early summer as and when the Hippodrome Casino formally opens rather than 1 April 2012, as had previously been envisaged.
In addition, the board continues in the process of considering a couple of acquisitions which, if one or other were to conclude, may constitute a reverse takeover under the AIM Rules and, as a result, would require shareholder approval. The acquisitions in question are in the gaming sector and, if either completed, would bring with them a new senior management which the directors believe would help strengthen the board.
Sara Vincent, CEO, commented:
"The sale of onthebox.com and forexspace.com further reduces the loss making assets in our online publishing business whilst boosting our cash position. Eyeconomy continues to trade well and we look forward to provide a full update on it together with Purple Lounge in the publication of our interim results which we hope to be by early June. The board is working hard on the organic growth of the Group's various divisions and has made good progress towards realising a synergistic acquisition and looks forward to provide further updates as and when appropriate."
|Media Corporation Plc||Tel: +44 20 7618 9000|
|Sara Vincent - CEO|
|Nilesh Jagatia - Group Finance Director|
|Northland Capital Partners Limited||Tel: + 44 20 7796 8800|
|Luke Cairns / Rod Venables (Nominated Adviser)|
|Katie Shelton (Joint Broker)|
|XCAP Securities||Tel: + 44 207 101 7070|
|Jon Bellis / Karen Kelly (Joint Broker)|
|Bishopsgate Communications||Tel: + 44 20 7562 3350|
Notes to editors:
Quoted on the AIM market of the London Stock Exchange, Media Corp is a leading online gaming and media group.
The Group has two principal divisions:
Online Gaming - Media owns Purple Lounge, www.purplelounge.com a leading European online poker casino operator. With over a 120,000 registered customers, Purple Lounge provides an excellent user experience through a combination of the latest technology and best in class customer service.
Advertising Network - Eyeconomy specialises in mass reach campaigns to up to 50 Million unique consumers per month via its own proprietary ad-serving and tracking technology for clients including AOL, Dell and American Express, www.eyeconomy.co.uk
Further information can be found on the company's website, at www.mediacorpplc.com
Copyright Business Wire 2012