2waytraffic, the AIM listed interactive entertainment content provider, today issued the following pre-close period trading update for the six months to 30 June 2007.
During the first half of the financial year 2waytraffic has achieved several significant milestones in the continued roll out of the strategy set out at the time of the Company’s IPO in April 2006. Overall trading remains in line with the Board’s expectations and in line with comments made at the time of the AGM in May.
The focus in the first half of 2007 was to integrate the acquisitions we made in 2006 and to restructure the Company, in particular, following the transformational acquisition of “Who Wants To Be A Millionaire?” (WWTBAM) in December 2006. Excellent progress has been made with both of these projects and we have already begun to see the benefits of the new efficient structure in the Enlarged Group.
Highlights for the first half include:
The successful integration and re-branding of Celador International into "2waytraffic International”, launched at MIPTV in April 2007;
The successful integration of Emexus and 2waytraffic’s historic mobile content division into a new company called 2waytraffic Mobile, which has operating companies in the USA, EMEA and Asia Pacific;
Establishment of a UK operating company, 2waytraffic UK.
New format launches, including “The Ring” and “Holiday Fever”, receiving positive early interest from multiple broadcasters and which have been optioned in Australia and Germany respectively. “Last One Standing” has been sold in Turkey and Greece and optioned in a number of different territories;
“Who Wants To Be A Millionaire?” (WWTBAM) is performing as expected and has secured a new deal in China and re-launched in the USA, India, Serbia, Slovenia and Slovakia;
Promising outlook for WWTBAM spin off formats and early pilots of increased in-programme branded interactivity;
2waytraffic Benelux secured new format deals, including “Search for the next Videomodel” for Dutch broadcaster Veronica;
In Belgium a permit to perform participation TV activities was granted to 2waytraffic’s programmes; and
Continued strong trading in 2waytraffic Mobile in USA, growth in EMEA and Asia Pacific region.
Corporate Governance
The Board is seeking to appoint two independent non executive directors before the end of the financial year to 31 December 2007.
Current trading
Current trading is in line with the Board’s expectations and, while being conscious of the second half weighting of the business, the board remains confident of a successful outcome for the year to 31 December 2007.
The composition of revenues is different than forecast, due to the later than expected commencement and contribution to revenues of certain contracts and the previously identified shortfall in Benelux participation TV revenues. This has been offset by the good performance across other divisions with existing businesses performing well and achieving new contract wins. The Directors are pleased that the benefits of the increased scale of the Company and the Company’s increasingly diverse revenue streams, in terms of both operations and geography, are now starting to come through.
Commenting on today’s trading update, Kees Abrahams, Chief Executive Officer said: “During the first half of 2007 the Board’s focus has been on successfully integrating the acquired businesses. Good progress has been made, enabling us to concentrate on the further roll out of our strategy. Looking forward, we remain focused on our strategy of growing through a combination of expanding our intellectual property catalogue, our geographic reach and our talent pool as well as through selective acquisitions. Overall we are looking to further enhance 2waytraffic’s position as a global leader in convergent entertainment content.”
press releases
press contact
