RNS Number:2077Z
Newsplayer Group PLC
29 July 2002
29 July 2002
PRESS RELEASE
NEWSPLAYER GROUP PLC
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30TH APRIL 2002
Newsplayer Group plc ("NPG"), the media company, today announces interim results
for the six months ended 30 April 2002.
Financial Highlights:
• Turnover increased to £604,000: a 27% increase on the previous six months
• Pre-tax loss of £720,000: reducing by 32% the pre-tax loss in the previous
six months
• Cash reserves of £1.8 million
Operational Highlights:
• Unique five-year, non-exclusive agreement signed with EMI Recorded Music
in November 2001 to licence footage from EMI's catalogue of historic and
current video material.
• Content and distribution agreement signed with the Royal Society for the
Protection of Birds (RSPB). NPG will manage the entire RSPB Film
Collection, one of the most prolific and comprehensive collections of its
kind.
• Acquisition of the trade and assets of Footage.net, the world's leading
portal for stock footage from libraries including ABC News, Action Sports
and National Geographic.
• Distribution agreement signed with Cable and Wireless to syndicate NPG's
entire current and future content through their worldwide network to over a
thousand ISPs worldwide covering an audience of 80 million Internet users.
• Agreement with North American Institute signed, securing UK home video
rights for 12 months and non-exclusive worldwide Internet rights for 10
years for World Cup action between 1958 and 1998.
Post the period under review, NPG has announced a number of key events,
including:
• Launch of VideoTV, a new on-line subscription music video streaming
service providing subscribers with access to a unique interactive, on-line
database of EMI music videos and video footage.
• Launch of PureWorldCup.com, an on-line video subscription service
featuring World Cup action.
• Global agreement with BBC Worldwide signed to licence archive material
from Breakfast with Frost and earlier David Frost programmes..
• Seven year worldwide licence agreement signed with David Paradine
Productions and Archbuild to digitise all the Frost programmes originally
broadcast on Associated Rediffusion.
Commenting on the results, Paul Duffen, Chief Executive Officer, said:
"There have been significant achievements during the first half of the year
which further strengthen our position as the partner of choice in the
video-on-demand space - in particular, our agreement with EMI, our partnership
with Cable & Wireless and our deal with the BBC. In addition we have signaled
our commitment to the business-to-business sector through our acquisition of
Footage.Net, the world's leading stock footage portal. The Group has low
operating costs, a world-class collection of media assets and the distribution
channels in place to drive the top line. We will continue to look for
opportunities to extend our catalogue of content and are actively seeking to
strengthen our distribution and rights management capability through the
acquisition of complimentary technology."
Enquiries:
NPG plc 020 7927 6699
Paul Duffen, CEO
Merlin Financial 020 7606 1244
Philip Ranger/Nicola Davidson
CHIEF EXECUTIVE STATEMENT
OVERVIEW
Newsplayer Group plc is a new media company that exploits rights and/or licenses
to quality cultural and historical video content and markets them globally to
business, educational and consumer audiences using interactive technology.
Revenues are generated from the licensing of content to third parties, from
subscription and pay-per-view fees paid by consumers, and from shared
advertising revenues. NPG is becoming the partner of choice for the
digitization and distribution of broadcast content and interactive programme
creation.
MEDIA CHANNELS AND LICENSED CONTENT
Footage.net (acquired Dec. 2001)
A leading stock footage portal which manages the databases of many of the
world's leading stock footage libraries, including ABC News, CNN, Action Sports,
National Geographic, and many others.
Newsplayer.com - ITN/Reuters Archives
A subscription consumer channel offering 1,000 hours of footage from ITN/
Reuters, including material from Paramount, Gaumont, British Empire News,
Visnews, French Pathe et al. Features original video footage of some of the
most important and notable events of the 20th century.
Frost.tv - The Frost Collection
A video-on-demand subscription channel featuring the unparalleled archive of 40
years of Sir David Frost's original interviews with the world's most famous
public figures. Strategic partnership to develop commercial applications, both
on- and off-line.
Screenplayer.com - Passport International Productions
A video-on-demand subscription channel offering the largest collection of
Hollywood footage in the world, including more than 650 hours of movie-related
documentaries comprised of film trailers, celebrity interviews and profiles of
the stars.
Video.tv - EMI Catalogue
A video-on-demand subscription channel providing an interactive collection of
EMI music videos featuring artists and groups spanning the 20th Century.
Advanced negotiations are underway with other major record labels who have
expressed an interest in having their material represented on VideoTV.
Birdstream.com - RSPB Film Collection
A video-on-demand subscription channel giving access to 100 hours of
award-winning wildlife footage in the Film Collection of the Royal Society for
the Protection of Birds. Professional programmakers can also license the
material through RSPB's website.
Pure World Cup.com
A video-on-demand subscription channel providing World Cup highlights from 1958
to 1998.
Ucreate.tv
A unique editing tool allowing users to make their own films online using home
video material and 1,000 hours of classic archive footage from newsplayer.com.
The Alison Mercer Collection
Exclusive licence for 80 hours, or 1400 video clips, of film-related material of
cinema's golden age and US-focused archive news and features.
Stock Video of Boston
Exclusive licence for 150 hours of classic sports footage from Stock Video of
Boston, sourced from Columbia Sports News, Castlefilms and a selection of
private collections.
FINANCIAL RESULTS
Revenues for the six months to April 30th 2002 were £603,738, which represents a
27% increase on the previous six months and a 41% increase on the same period
last year. The loss for the period was £720,804 down from £1,062,683 for the
previous six months. Cash reserves were £1.8 million. In the 12 months from 30
April 2001 to April 30 2002 £2.7 million was spent on non P&L items such as
acquiring rights and licences to content. No dividend has been paid or is
proposed.
OUTLOOK
With the addition of content from EMI and the BBC, NPG has continued to build
its base of valuable Intellectual Property assets throughout the period. The
Group has invested in its first acquisition, FootageNet, which ideally positions
its wholly owned subsidiary, NPG Inc, to generate revenues from the expanding
on-line stock footage market. The distribution agreement with Cable & Wireless
provides a platform to drive revenues from the Group's video-on demand channels,
which have been significantly enhanced by the launch of VideoTV in July. The
pace of broadband rollout in the UK has seriously affected revenue generation
but the market is now starting to emerge with over 700,000 broadband
subscribers. The wider European picture is even more encouraging with Asia and
the USA remaining the leaders in broadband proliferation. With the combination
of positive industry developments, a strengthened catalogue of content and
secure worldwide distribution, whilst revenues have grown at a slower rate than
expected, the Directors believe that the Group will now achieve profitability by
April 2003.
Paul Duffen,
Chief Executive
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 APRIL 2002
Profit and loss account
Six months ended Six months ended Year ended 31st
30th April 2002 30th April 2001 Oct 2001
Note (unaudited) (unaudited) (audited)
£ £ £
Turnover 2 603,738 427,985 902,101
Cost of sales (171,723) (95) (4,439)
Gross profit 432,015 427,890 897,662
Operating expenses (1,197,055) (1,161,936) (2,809,651)
Operating loss (765,040) (734,036) (1,911,989)
Net interest receivable 44,736 174,953 291,546
Loss on ordinary activities before taxation (720,304) (559,093) (1,620,443)
Taxation (500) - (1,333)
Loss on ordinary activities after taxation (720,804) (559,093) (1,621,776)
Loss per ordinary share - basic and diluted (1.07p) (0.85p) (2.46p)
All operations derive from continuing activities.
No statement of total recognised gains and losses has been presented as there
are no recognised gains and losses other than the loss for the period.
Balance Sheet
30th April 2002 30th April 2001 31st Oct 2001
(unaudited) (unaudited) (audited)
Note £ £ £
Fixed assets:
Intangible assets 3,218,746 385,328 1,007,793
Tangible assets 238,267 189,972 217,520
Current assets:
Debtors 3 2,132,230 1,691,027 1,793,980
Investments - 500,000 -
Cash at bank and in hand 1,783,885 5,053,730 3,798,221
Creditors: amounts falling due within one year (499,147) (251,844) (311,984)
Net current assets 3,416,968 6,992,913 5,280,217
Total Net assets 6,873,981 7,568,213 6,505,530
Capital and Reserves
£ £ £
Called up share capital 4 692,688 658,054 658,054
Share premium account 11,707,380 10,652,759 10,652,759
Merger reserve (509,386) (509,386) (509,386)
Profit and loss account (5,016,701) (3,233,214) (4,295,897)
Shareholders' funds 5 6,873,981 7,568,213 6,505,530
Cash Flow Statement
Six months ended Six months ended Year ended 31st
30th April 2002 30th April 2001 Oct 2001
(unaudited) (unaudited) (audited)
Note £ £ £
Net cash outflow from operating activities 6 (795,366) (1,181,044) (2,335,360)
Returns on investment and servicing of finance 45,313 171,019 346,988
Taxation paid - -' (1,000)
Capital expenditure and financial investment (822,186) (307,891) (1,084,053)
Management of liquid resources - 4,600,000 5,100,000
Acquisitions and disposals 7 (476,731) - -
Cash (outflow)/inflow before financing (2,048,970) 3,282,084 2,026,575
Financing:
Issue of ordinary share capital 4 34,634 - -
(Decrease)/increase in cash (2,014,336) 3,282,084 2,026,575
Notes
1. These interim results for the six month period ended 30 April 2002 do
not constitute statutory accounts and have been neither reviewed nor audited by
our auditors. The financial information for the year ended 31 October 2001 is
derived from the statutory accounts for that year which have been delivered to
the Registrar of Companies. The auditors reported on those accounts; their
report was unqualified and did not contain a statement under s237(2) or (3)
Companies Act 1985.
The accounting policies are consistent with those applied in the preparation of
the statutory accounts for the year ended 31 October 2001.
The calculation of loss per share has been based on the loss after taxation for
the period of £720,804 and the weighted average number of ordinary shares in
issue during the period of 67,351,731.
Diluted EPS is not presented in respect of outstanding share options since none
of the options are dilutive.
The directors do not recommend the payment of a dividend for the period.
2. Turnover
Turnover comprises subscription income for access to the company's web sites,
fees from licensing of media rights and licensing fees for software.
3. Debtors
Debtors includes amounts of £463,542 for trade debtors, £800,412 for prepayments
and £682,058 in respect of prepaid advertising.
4. Changes in share capital
A total of 3,463,440 1p Ordinary shares have been issued since 1 November 2001.
Of these, 3,290,300 were issued on 27 November 2001 at par as a part of the
consideration in respect of the agreement with EMI entered into on 27 November
2001. The remaining 173,140 1p Ordinary shares were issued at par on 25 April
2002 in connection with the same agreement.
5. Reconciliation of movement in shareholders' funds
Six months ended Six months Year ended 31st
30th April 2002 ended 30th Oct 2001
April 2001
£ £ £
Loss on ordinary activities after taxation (720,804) (559,093) (1,621,776)
Issue of ordinary share capital 1,089,255 - -
Net increase/(reduction) to shareholders' funds 368,451 (559,093) (1,621,776)
Opening shareholders' funds 6,505,530 8,127,306 8,127,306
Closing shareholders' funds 6,873,981 7,568,213 6,505,530
6. Reconciliation of operating loss to operating cashflows
Six months ended Six months Year ended 31st
30th April 2002 ended 30th Oct 2001
April 2001
£ £ £
Operating loss (765,040) (734,046) (1,911,989)
Depreciation 36,171 14,323 43,875
Amortisation 135,756 81,097 177,692
(Increase)/decrease in debtors (338,830) 110,188 (52,139)
Increase/(decrease) in creditors 136,577 (652,606) (592,799)
Net cash outflow from operating activities (795,366) (1,181,044) (2,335,360)
7. Acquisition
On 27 December 2001 the newly formed US subsidiary, NPG Inc., acquired the
business and assets of Footage.net, a leading stock footage portal, from eMotion
Inc. giving rise to goodwill of £476,731.
This Interim Report was approved by the Directors on 26th July 2002.
The report will be sent to all registered shareholders and will be available to
members of the public from the Company's registered office at 12 Gough Square,
London EC4A 3DW and online from the Company's corporate website at
www.npg-plc.com.
-END-
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