Ten Alps PLC Trading Update (2319N)
January 28 2016 - 2:00AM
UK Regulatory
TIDMTAL
RNS Number : 2319N
Ten Alps PLC
28 January 2016
28 January 2016
Ten Alps plc
("Ten Alps", the "Company" or the "Group")
Trading Update
Ten Alps, the TV and multimedia content producer, provides an
update on current trading of the Group, ahead of the announcement
of its half-year results for the period ended 31 December 2015,
which it expects to release on 8 March 2016.
The Board is pleased to report that an increase in the Group's
revenue pipeline at the start of the calendar year has reinforced
management's confidence in returning the Company to profitability
in the current financial year, which ends in June. Furthermore, we
are also already seeing the revenue pipeline start to build for
FY16-17, across all parts of the business.
While we anticipate achieving full year revenues broadly in line
with market expectations, we now expect that EBITDA will come in
below current market expectations; although still anticipate that
the Group will move from a loss to a material profit at EBITDA
level. This is largely owing to slower than planned progress in the
turnaround of the Group's Publishing division.
In the Group's TV division, commissions from broadcasters
accelerated in January, compensating for a slower than expected
period in the previous quarter. Despite the delays in programme
commissioning we are still expecting Television to perform strongly
with revenues, which make up two-thirds of the Group's business, to
achieve annual growth of over 20 per cent. on a comparable basis.
We are also seeing positive results from our revised strategy of
focussing on larger-scale commissions for series rather than
one-off programmes. Reef TV ("Reef"), acquired in July 2015 and
which has integrated well with the existing Ten Alps TV businesses,
is performing strongly and according to plan. We are confident that
Reef will achieve its full-year targets and make a significant
contribution to Group profitability.
The first half of the Group's financial year, which is
traditionally slower than the second half across the business, saw
slow advertising sales in parts of the Group's publishing portfolio
as well as delays in programme commission sign-offs for Television.
The Group's interim results, due to be published in March, will
show a small EBITDA loss for the first half, however management are
confident that the revenue pipeline for the second half is of
sufficient scale to deliver its current expectations of full year
EBITDA profit, achieving our target of a fundamental turnaround
after several years of losses.
Our Communications business has recently extended into video
communications targeted at large blue chip corporates, in line with
our strategy of building a video-led corporate story-telling and
content marketing business.
There will be some further rationalisation of the Group's
Publishing division, which is being transformed from a print-based
business into one focussed on growing events and digital revenues.
Although the division has been trading behind target in the first
half, we remain confident that management have taken the right
actions to refocus the business and the Board remains confident
that it will deliver profits in the current financial year, for the
first time in many years.
For further information please contact:
Ten Alps plc +44 (0) 20 7878 2311
Mark Wood, Chief Executive Officer
c/o Emer Donohoe
www.tenalps.com
N+1 Singer (NOMAD and Broker to Ten Alps) +44 (0) 20 7496 3000
Shaun Dobson / Lauren Kettle
FTI Consulting (Financial PR) +44 (0) 20 3727 1000
Rob Mindell
This information is provided by RNS
The company news service from the London Stock Exchange
END
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