TIDMPER
RNS Number : 4167G
Perform Group PLC
29 June 2012
29 June 2012
Perform acquires leading Turkish digital sports media company
&
Update ahead of closed period
Perform Group plc ("Perform"), the global market leader in the
distribution and commercialisation of sports content across
connected digital platforms, announces that it has acquired a
majority stake in Mackolik Internet Hizmetleri Ticaret A.S.
("Mackolik") which owns and operates a number of Turkey's leading
independent sports websites including mackolik.com and
sahadan.com.
Consideration
Perform is acquiring an initial 51% stake in the business for
cash consideration of 40.8 million Turkish Lira (TRY) (GBP14.6
million) based on an agreed ten times multiple calculation of the
full year audited EBITDA results of the business for the year
ending 31 December 2012. This initial payment will be made out of
the Group's existing cash resources and will be adjusted if
reported EBITDA for 2012 is higher or lower than the current
forecast of TRY 8 million. In addition, Perform will acquire the
remaining 49% for cash, based on an agreed ten times multiple
calculation of the average full year audited EBITDA results of the
business for the years ending 31 December 2014 and 2015 weighted
25% and 75% respectively, with maximum additional consideration
payable in March 2016 of up to GBP60.4 million.
Acquisition Rationale
The acquisition significantly enhances Perform's presence in
Turkey, the fastest growing digital market in Europe, and is in
line with Perform's stated strategy for growth through acquisitions
announced at the time of the IPO.
Mackolik is the market leader in digital sports media in Turkey,
operating 10 sports websites:
- These include Turkey's top two most visited sports sites -
mackolik.com and sahadan.com, which averaged over 7.8 million and
8.5 million monthly unique users across the 5 months ending May
2012, up from 5.7 million and 6.9 million for the same period in
2011, representing growth of 37% and 23% respectively (source:
Google Analytics).
- Its websites contain a mix of original sports editorial
content, live scores and social features including forums and
moderated chat. The sites are available in desktop formats and via
a range of smartphones and tablet platforms.
- In the year to 31 December 2011 Mackolik reported advertising
and subscription revenues of TRY 6.6 million (GBP2.4 million),
operating profits of TRY 2.4 million (GBP0.9 million) and a pre-tax
loss of TRY 1.0 million (GBP0.4 million). Gross assets at 31
December 2011 were TRY 4.9 million (GBP1.8 million).
Turkey, the 6(th) largest economy in Europe, represents an
exciting market for Perform given the growth in internet usage,
online advertising and its young and growing population:
- Approximately 30 million active internet users; mobile is a
fast growing addition with 21 million 3G mobile subscribers.
- Online advertising spend in Turkey is expected to grow by 27% CAGR between 2011 and 2016.
- 2(nd) largest population in Europe, with 51% of the population under 30 years old.
The acquisition is in line with Perform's acquisition
strategy:
- Acquisition of a 'local champion', which can be enhanced with
Perform's world-class sports editorial, data and video content.
- The acquisition is expected to be accretive to earnings in 2012 and beyond.
The business has been acquired from the two founders and three
private investors. Following the completion of the acquisition,
Mackolik's founders Erdem Yurdanur and Tarkan Onar, will remain as
Chief Executive Officer and Chief Operating Officer respectively
and will retain the remaining 47% of shares in the business, with
the three private investors exiting. 2% of the shares will be held
by an Istanbul based financial services advisory firm Odin
Financial Advisors.
Oliver Slipper, joint CEO of Perform commented: "We continue to
execute our strategy of augmenting our strong organic growth with
selective acquisitions and are delighted to have announced the
acquisition of Mackolik.
"Turkey is a hugely exciting opportunity for Perform, given the
rapid growth in online advertising and internet usage and its young
and growing population. Within this important geography, Mackolik
is the clear market leader with a fantastic portfolio of websites
and content. We are delighted to be able to welcome Mackolik to the
Perform Group."
Erdem Yurdanur, CEO of Mackolik, commented: "We are excited to
be joining the Group. We believe that working with Perform will
enable us to accelerate Mackolik's development and take full
advantage of the numerous opportunities present in our market,
particularly in relation to sports video, editorial and data
content."
Update ahead of Closed Period
Perform remains on track to deliver strong revenue and EBITDA
growth for the full year in line with the Board's expectations.
Before taking into account the positive financial benefits of the
Group's recent acquisition of the RunningBall Group, which will
fall predominantly in the second half of the year, the first half /
second half profile of EBITDA is anticipated to be similar to 2011,
due to the seasonality of advertising spend, which is typically
higher in the second half, the phasing of a number of technology
and production contracts (as previously flagged) and the typical
EBITDA profile of a fast growing business.
Perform will report first half results on 30(th) August
2012.
Turkish Lira: Sterling exchange rate of 2.8:1 assumed.
About Perform
Perform is a global market leader in the commercialisation of
multimedia sports content across multiple platforms. Perform owns
one of the largest portfolios of digital sports rights in the
world, through contracts relating to more than 200 sports leagues,
tournaments and events. The management is focused on driving
profitable, organic, earnings growth through leveraging its content
across new digital platforms, new products and across new
geographies, taking advantage of favourable technology trends such
as growth in digital media consumption and online video viewership.
In April 2011, Perform floated on the London Stock Exchange.
www.performgroup.com
Enquiries
Perform Group plc +44 (0) 203 372 0600
David Surtees, CFO
Tulchan Communications +44 (0) 207 353 4200
Stephen Malthouse
James Macey White
This information is provided by RNS
The company news service from the London Stock Exchange
END
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