Betfair Group PLC Betfair's TVG acquires HRTV (2032F)
February 18 2015 - 2:01AM
UK Regulatory
TIDMBET
RNS Number : 2032F
Betfair Group PLC
18 February 2015
18 February 2015
Betfair's TVG acquires HRTV
Betfair Group plc ("Betfair") has today announced that its
subsidiary TVG has acquired the HRTV horseracing television network
from The Stronach Group. As a result of the acquisition, TVG now
has long-term television rights to the racecourses owned and
operated by the Stronach Group.
The television operations of the Stronach Group's HRTV will be
combined with Betfair's TVG network. Following the transaction,
Betfair will own 100% of the equity in the unified television
platform. As part of the acquisition, TVG has acquired broadcast
rights to all races from Santa Anita, Gulfstream Park, Pimlico,
Golden Gate Fields and Laurel Park for a term of seven years.
Purchasing HRTV and thereby securing these long-term rights
strengthens TVG's ability to drive incremental wagering on its
advanced deposit wagering platform and is expected to lead to
additional advertising and distribution opportunities.
Betfair will make an initial payment of $25 million and
estimates that it will pay further consideration totalling $47.8
million over the seven-year period, although the total
consideration is dependent upon TVG's future handle. Based on
projected future cash flows, the present fair market value of these
payments is estimated to be $56.3 million. In the last twelve
months, under previous agreements, TVG paid $4.3 million in
television fees to HRTV related to television content, including
The Stronach Group racetracks, for which HRTV has held exclusive
rights. This transaction eliminates the need for TVG to pay those
television fees.
In the year ended 31 December 2013, HRTV had revenue of $9.5
million and losses before tax of $3 million and, at 31 December
2013, had gross assets of $2.5 million. It is anticipated that the
transaction will be earnings neutral for Betfair in year one and
accretive thereafter.
Betfair CEO Breon Corcoran said: "This deal strengthens TVG's
position as a significant player in the US horseracing industry,
bringing together the US' leading racetracks under a single TV
network for the first time.
The enlarged TVG operation will now show the most exciting
racing action globally whilst offering a world-class betting
experience. We believe this is a very compelling proposition for
our customers".
For more information, please contact:
Paul Beacham, Investor Relations
Tel: +44 20 8834 6329
James Midmer, Corporate Communications
Tel: +44 20 8834 6843
This information is provided by RNS
The company news service from the London Stock Exchange
END
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