RNS Number:7378L
Cellcast plc
08 November 2006


Press Release                             8 November 2006 

                                  Cellcast plc



                         ("Cellcast" or "the Company")



                       Trading Update and Issue of Equity



Trading Update



Following a full review of UK operations, the Company has taken action to reduce
the fixed costs of its UK operations and its channel production overheads.  It
has also implemented a plan either to withdraw from, or redeploy, bandwidth to
increase its gross profit.  Whilst significant savings have already been
achieved and booked, the full benefits will not be realised until the first half
of 2007.  As a result, the Directors no longer expect the UK business to return
to profitability during the second half of 2006.  The Directors, however, still
remain confident that the already implemented cost reduction plans will lead to
a return to previously achieved UK gross margins during the first half of 2007.



Whilst cutting UK related costs, the Company has continued to invest in its
technology platform and associated interactive formats for which it has seen
growing demand from international broadcasters.  More specifically the Company
has chosen to focus on the major developing mobile and broadcast markets of
Brazil, India, China and South East Asia where both the broadcast, telecoms and
regulatory environments best favour both immediate and long term returns, and
where most upfront  investment has already been made in the course of 2006.



Cellcast has established Cellcast South East Asia in a 50-50 Joint Venture with
mTouche Technology Berhad, a leading regional mobile entertainment company
listed on MESDAQ.  The Joint Venture's first format has premiered on Malaysia
top terrestrial broadcaster TV3 and its immediate success in terms of ratings
and viewer response has led to strong interest from other regional broadcasters
and secured contracts for launch in Indonesia and Thailand.



Cellcast is also realising new ways of monetising its investment in its
proprietary technology outside of its own broadcast operations and has been
approached to license its multi-media platform and applications for other media
services.  This could provide a quick route to capture value for investors in
the form of upfront and ongoing licensing fees.



Issue of Equity



The Company announces that the Board has issued and allotted 453,125 new
Ordinary Shares of 3p each at 8p each to HB Corporate, in lieu of fees and
placing commission, in relation to the Placing by the Company as announced on 31
August 2006.



These shares, once issued, will rank pari passu with the existing Ordinary
Shares.  Application has been made for the shares to be admitted to AIM, with
admission to trading on AIM expected to be on 13 November 2006.



In addition, as set out in the Placing Announcement of August 31 2006, Andrew
Wilson (Chief Executive Officer) and Bertrand Folliet (Chief Operating Officer)
each subscribed to 1,562,500 new Ordinary Shares at 8p per share through
Harkness Trading Limited, a company they beneficially own.  Andrew is currently
interested in 2,955,997 ordinary shares and Bertrand is currently interested in
2,925,497 ordinary shares in the Company, representing 10.32 and 10.43 per cent
of the Company's issued share capital respectively.



                                    - Ends -



For further information:
Cellcast plc
Andrew Wilson, CEO                               Tel: +44 (0) 20 7190 0300
andrew@cellcast.tv                                         www.cellcast.tv


HB Corporate
Imran Ahmad / Cecil Jordaan                      Tel: +44 (0) 20 7510 8600
i.ahmad@hbcorporate.co.uk                            www.hbcorporate.co.uk



Media enquiries:
Abchurch
Henry Harrison-Topham / Gareth Mead              Tel: +44 (0) 20 7398 7710
henry.ht@abchurch-group.com                         www.abchurch-group.com



Notes to Editors:

Cellcast plc



Cellcast plc is a leading international provider of participation television
applications and interactive mobile content in the fast-growing multi-platform
digital entertainment sector. Headquartered in London, with associated
operations in Paris, Beirut, Mumbai, Hong Kong and Buenos Aires, Cellcast's
applications and programming are distributed on the Sky Digital and Freeview
platforms in the UK and by major broadcasters including Canal+ in France; STB in
Ukraine; Future TV, Dubai Television and Rotana TV in the Middle East; Zee TV
and Star TV in India; TV3 in Malaysia, TVS-3 in China; Telefe in Argentina; and
Rede in Brazil.



Cellcast's revenues streams are independent of both advertising and subscription
fees. With a network of revenue sharing agreements with telecommunications
carriers and aggregators across five continents, Cellcast receives a share of
the call revenue every time a consumer uses a mobile or fixed-line phone to
participate in its interactive entertainment, revenue which is retained or
shared with its broadcast partners. Cellcast's programme formats and proprietary
Interactive Platform (CIP) also facilitate delivery of content to mobile phones,
the internet and broadband-delivered IPTV. This enables viewers to continue
participating in a programme away from the TV, generating 24/7 revenue
opportunities. In May 2006, Cellcast announced the launch of a range of new
interactive entertainment services on Freeview's digital terrestrial television
(DTT) platform in the UK which included a breakthrough in interactive TV
technology.



Cellcast plc joined the AIM market (AIM) of the London Stock Exchange on 21
September 2005.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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