23 May 2017
Catalyst Media Group plc
("CMG" or the "Company")
Further to CMG's announcement of its interim results for the six months ended 31 December 2016, announced on 31 March 2017 ("Interim Results"), CMG provides the following update in respect of Sports Information Services (Holdings) Limited ("SIS") in which it has an approximate 20.54% interest.
In the Interim Results, CMG set out that SIS had agreed to acquire two greyhound tracks. CMG has been notified that SIS has not been successful in acquiring the greyhound tracks as previously planned and that Arena Racing Company has acquired them, which will likely impact and reduce SIS's greyhound content and, as a result, operating results going forward.
As set out in the Interim Results, as a result of the transition by SIS to lower risk and lower profitability business arising from the changes in the media rights, particularly in respect of SIS's horse racing rights, SIS's underlying operating results for its financial year ending 31 March 2018 were expected to decline by approximately 50%. Following the potential reduction in greyhound content from the end of 2017, when certain greyhound media rights expire, initial indications from SIS are that its underlying operating results are now expected to decline by approximately 60%, rather than 50% as previously announced, for the financial year ending 31 March 2018, prior to any mitigating actions which may be implemented by SIS.
The likely reduction in greyhound content will also impact SIS's profitability in future years, the level of which is yet to be determined and which will be dependent upon any mitigating actions SIS may take as a result of the factors outlined above.
Catalyst Media Group Plc
Michael Rosenberg, Non-executive Chairman: 07785 727 595
Melvin Lawson, Non-executive Director: 020 7734 8111
Strand Hanson Limited: 020 7409 3494
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").