Company Profile

YooMedia plc is one of the fastest growing interactive entertainment companies in the UK.
Since 1997 we have been developing and launching leading B2C consumer brands in the gaming and community sectors. We also work in a B2B capacity with leading brand owners, agencies, content developers and broadcasters to design and develop their interactive content strategies.

Led by Executive Chairman Dr. Michael Sinclair and Group Managing Director Neil MacDonald, YooMedia has assembled a highly experienced management team that possesses a unique blend of skills and experience in the areas of Digital TV, Internet and mobile phone services and technology.

With main office locations in London, Exeter and Maidstone, YooMedia manages core assets including:

Over 30 office locations throughout the UK alone

State-of-the-art studio, production and post-production facilities at our Wapping location.

UK broadcast return path & bandwidth owner

Fully fledged UK Bookmaker License

Database with over 350K UK singles

SMS Engine access with international reach

Fully staffed 50 seat Customer Contact Centre in Maidstone, Kent

YooMedia Dating & Chat - Our dating subsidiary company manages the oldest and largest UK-owned dating brands including Dateline, Club Sirius and Avenues. YooMedia Dating has over 20 office locations throughout the UK and also manages YooChat, our world-leading interactive chat service found on UK digital cable on the Telewest platform (platform extensions planned for 2005).

YooMedia Gambling & Games - Combining the brands of Avago and Channel 425 (in partnership with William Hill) YooMedia is on the leading-edge of interactive fixed odds, casino and poker gambling services for digital TV, the web and 3G mobile phones. Our gaming business also manages YooPlay, the only interactive just for fun games channel found on all four Digital TV platforms in the United Kingdom.

YooMedia Enhanced Solutions (YES) - YES works with brand owners, agencies, content owners and broadcasters to clarify the options, define the strategies and deliver the interactive content that enhances consumer and audience experiences. YES customers include the BBC, Nestle, Celador, William Hill, Channel 4, ZipTV, The Cartoon Network and HR Owen.

The patent and the TriggerTV system, was last year, valued at least 36p a share. A few deals like 'Millionaire' and we will see this forecast exceeded.

I imagine once 'bedded in' our new Walkaway game on 'Millionaire' will attract at least 100000k players, out of a Saturday night audience of many millions. Assuming a three way revenue split on the 1, Yoomedia might receive 33p a play, although our cut may be more.

33p * 100000k = revenue per show of 33k * 12 show in series = revenue for series of 396k.

Three Millionaire series in year. 396k * 3 series = 'Walkaway revenue for year of 1.2m.

This is just one quiz show. ITV 3 is due for launch in November and C4 have recently confrimed their commitment to open many new channels, all with interactive elements. The above figures are only a guide and actual revenue may be less or much more than stated. Everything hinges on number of players and Yoomedia's cut of the 1. A 50p cut with more players and the revenue projections soar.

Imagine holding your Yoomedia shares for 3 years. By then, virtually every television show will have an interactive element and I believe quiz show with studio participants will be waning in popularity, in favour of shows with direct viewer participation, in real time. Yoomedia's patented technology and our ability to process 1.8m SMS messages an hour and time stamp them, is the key to the future sucess of this concept.

I believe the idea of viewer participation will be the accepted standard for quiz show, within three years. If true, the effect on the market cap will be mind blowing. This is not a ramp, it's happening, a slow but real revolution in television. Remember, one does not need digital television to play 'Walkaway' on Saturday evening. Analouge viewers can also participate, as can every single member of the household.

mac

Thanks again! The Docherty quote answers my question re the relationship between interactive TV, the Internet and mobile. This seems to be the heart of the story. Essentially, the end-user has DTV and or mobile; the hub and intermediate nodes (e.g. distributor, local garage)has internet, connected to data bases. The Trigger and Whoosh software handle the multitudes of DTVs and mobiles as appropriate. Docherty also adds in the above their interest in the field of converging specialised TV channeled over interactive media, i.e. (I think) DTV. He is talking futures from his remarks and there must be others interested in this key, core area. But YOO has a big start with strong technology teams, existing product and, very important this, patents. We could be talking mega-bucks, or perhaps just a billion or two ! Lets not overstate the case!

Eric

http://www.c21media.net/search/search.asp?keyword=YOOMEDIA

Yoomedia plans linear TV channel launch 29 Oct 2004

"UK-based Yoomedia is planning to launch a raft of linear television channels to support the growth of its cross-platform interactive content business according to ceo, David Docherty."

Same story. Site is pay to view, 20 for one month. I suspect the interview with Mr Docherty, available for subscribers, is rather more substantial.

mactavish: Have you been able to draw together all the various potential revenue streams and growth forecasts etc? It would also be helpful if we could find out what has happened in the States with anything similiar? Comparisions of growth potential particularly in gambling would be of real interest. John

John.


We know brokers forecast for 2005 is around 40m.

However, how can anyone predict with reasonable accuracy, the future revenue streams of Yoomedia. The raft of linear television channels plannned by our CEO, if as successful as I envisage, will blow any revenue estimate away. It's never been done before, as the technology didn't exist. Yoomedia are at the cutting edge of this exciting new world and there IS a huge gap in the market for exactly the type of service, Yoomedia are planning. Specifically, television channels to support the growth of it's cross-channel interactive content business.

Regarding the U.S. I know they are well behind the U.K. Europe and Japan for mobile SMS development, digital broadcasting, although even in the U.S. consumers and mobile operators are slowly waking up to the possibilitys. Mike Arrieta is a non executive director on the Yoomedia board, who joined us as part of the Sony deal last December. This highly experienced professional, resides in the States and advises Yoomedia on the developments of the American mobile market.

Gambling, well just take a look at Sporting Bet.

"UK-based Yoomedia is planning to launch a raft of linear television channels to support the growth of its cross-platform interactive content business according to ceo, David Docherty"

Do not underestimate this news. It's the most significant news this year and perfectly complements our aquisitions, aquired this year. These new divisions of Yoomedia can be integrated into our new linear, interactive television channels. The business model is really starting to evolve now.

mac

I thought above that I was beginning to understand it but am not now so sure. Just to repeat some of Docherty's comments:

- ...high ground of convergent interactive technology with launch of specialised TV channels that can be digitally streamed across the various media channels.
- develop a brand across interactive TV, mobile communications and internet.
- interactive digital TV as glue that will join together the converging technologies of internet, mobile devices and TV.
- Internet as bridge between interactive TV and mobile - I think you will see us in linear TV in future in order to close the circle.

I'm coming at this from an IT background but admit to being confused. Specifically, need to grasp what is meant by 'digital streaming of specialised TV channels across various media channels', 'interactiove digital TV as glue...', internet as bridge ....'. Finally, what is meant here by 'linear TV'.

It may that those working in this area are clear on the concepts and Docherty is preaching to the converted, whilst others are working on the same issues. I accept intuitively that it is important and strategic for the future - thus the need to understand at least at a layman level.

Eric

Eric: You raise an interesting question..what is linear TV? One other aspect of YOO I would like to see examined in more detail on the BB is the strengh of the management team. Do they have a track record in picking up these sort of opportunities and driving through the product to success?

John

"Specifically, need to grasp what is meant by 'digital streaming of specialised TV channels across various media channels'"

Television, internet and wireless devices, like mobile phones.

"'interactiove digital TV as glue...', internet as bridge ....'"

I believe Mr Docherty is referring to the oncoming technology of 'Broadband TV' and the ability to stream controled content, via your chosen broadcaster, from the internet. Yoomedia are launching 'Broadband TV' on NTL next year and BT are seeking partners to stream television through broadband, straight into your televison set. Finally, Freeview will have a return path and this technology will provide a tremendous opportunity for established interactive content providers. Earlier this year, Yoomedia announced a parnership agreement with BT. At the time, I considered the logic to be exclusively due to iPublic, however, now we know differently. Clearly, Mr Docherty is well ahead of the curve and knows exactly where we are going.

"Finally, what is meant here by 'linear TV'"

The Collins, Plain English Dictionary, defines Linear as "A linear process is one where things happen one after another, each developing from the previous one."

Apply this definition, to Yoomedia's products and technology, digitally streamed across TV, PC and mobile phones, through our raft of new television channels, to be launched in the next 12 to 18 months. Requires no further explanation, in my opinion. 24 hour, in your face, Yoomedia. No time to pause for breath! As for the details, we will be updated in due course.

'These sorts of opportunitys' are a brand new concept. Investors should concentrate on the boards track record over the last two years, transforming Yoomedia from a company with no revenue at all, to a broker forecast of 40m+ revenue in 2005. Mobile revenues, may well blow these projections 'out of the sky'

"I see the internet as the bridge between interactive TV and mobile. I think you will see us in linear television in the future in order to close the circle. Twelve months from now we will also be driving harder at our core revenue areas, and mobile will be a really huge part of our business," said Docherty.

http://www.dtg.org.uk/news/news.php?id=408

As for your query, regarding the quality of the management team. Investors can decide for themselves, by visiting the link below. Good enough for me!

http://www.yoomedia.com/people.html

In 1986, our Chairman, Dr Micheal Sinclair, founded Lifetime Corporation, which was sold in July 1993 for $600m.

mac

Thanks for the explanations. It seems that the internet plays a key part in the streaming process. That seems logical because of the flexibility and programmability. It would seem the DTV is an ouput device and possibly an input device or that might be an associated internet box. Mobile is primarily an input device though also, e.g. in that vehicle application, an output device. Broadband is clearly essential. Yoomedia are making the whole thing function, including the Trigger and Whoosh software for interaction with the DTV programme. Not quite sure where the linear comes in; Docherty also talks about completing the circle but I suspect that is a figure of speech.

The performance of the management team over the last 18 months has been hugely impressive. There was a lot of hype associated with their arrival on the scene and the share price went to enormous heights given that there was practically no revenue. Since then there has been a series of acquisitions, partnership deals and product initiatives. It all seems to be part of a coherent business plan with a number of divisions all playing a part, both in generating business and contributing to the overall strategy. One gets the impression that the whole thing will accelerate, given also the exponential growth in dtv. As jgt, I find it difficult to assess just how rapid the growth might be and therefore what the cap. might be in a year's time. The market has reacted fairly quietly to the recent spate of announcements. It will be the financials which really get the share to move, probably a combination of actual results with positve cashflow and forecasts which can be used to project pe, etc. As you are suggesting, I think perhaps that any number we calculate at the moment will be beaten hands down. So the rise in sp may be delayed until next year which would be good in that it gives time for profits from the likes of ASC and PET to be recycled.

Eric

DTV tops 55% in UK households
According to Ofcom's quarterly market update, by the end of June 2004, more than 55% of UK households received digital television.

Freeview was the largest contributor to growth, adding more than 400,000 households in the second quarter of 2004.

The UK has overtaken Germany in broadband penetration, with 7.5 connections per hundred head of population, as opposed to 6.7 in Germany. But the UK still lags behind France, where the figure is 8.3, The Netherlands, where it is 15.8 and Denmark, where it is 15.6.

The regulators also report that the total number of broadband subscribers in the UK passed the 5m mark, reaching 5.3m by the end of September 2004. According to the report, business users are spending 1bn on fixed data services and 100m on mobile services every quarter.

Apart from the fact that broadband in France and some other countries in Europe exceeds that in the UK, the quarterly update is bullish and would indicate that Ofcom is pleased with progress.

But according to an industry source, the UK has no room for complacency. The convergence of broadband internet, telecoms and TV is far in advance of the UK in countries such as France, where unbundling of the former incumbent's exchanges happened much faster.

Lovelacemedia | 02.11.2004
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mac

Again, a very interesting post - thanks. How do you read the European market for YOO? At the moment, YOO management must have their hands full though they are pretty large hands. But, if the potential is there, they must be doing the planning, perhaps on the back of trading relationships. The related question is whether there is competitive threat from France, etc.

Market extremely quiet. However, it would seem likely that the dtv figures get some publicity and comment is likely to rise as the impact of dtv on Xmas trade becomes more apparent.

Eric

I can forsee Yoomedia expanding into European markets, but not in the next two years, simply far to much money to be made in the U.K. and the directors will need to stay fully focused, in order to deliver the significant potential of our products.

Mr Docherty stated last week, how he intends to deliver our own specialised, linear television channels and how in 12 months, mobile will be a huge part of the business. In effect, he is preparing to take the business to another level. The raft of new television channels, Mr Docherty is planning, may require additional funding. The best way to achieve this, is by attracting outside investors, who provide ALL the required capital. In return, the new investors will receive say 50% of the very substantial profits, which would surely arrive, a new division could be formed, with the outside investors owning 50% of the equity. YooTelevision is as good a name as any.

A WIN, WIN, for shareholders. No dilution for the existing stakeholders, but with a 50% share of the profits from the new division. The outside investors are happy, the shareholders do not suffer any diulution, yet benefit from owning a 50% stake in a GOLDMINE! I.M.H.O.

Once this business plan is driven through, delivered and executed with 5m+ profits on the table, then we can talk about European expansion. However, a takeover may mean, this particular stage of our evolution, is never reached.

Eric do you think ASC will hit a pound before Xmas? looks to be heading that way.

mac

Firstly, re ASC. There was a debate two or three months back as to timing of the share hitting 1; the broker forecast. General conclusion was that it would need the results from the Xmas season. I have just commented on that bb to encourage an investor to hold, or better accumulate and given the reasons. Briefly, the viewpoint is: price rising at 5% per day at present just to service the buying volume and enable the MMs to keep an equivalent sales volume to balance their books; results on November 29th are certain to be excellent as 5 months trading was 85% up; there should also be initial indication of seasonal trading - Xmas is almost bound to be dramatic with additional buyers on stream and huge publicity. 1 seems likely during Novemebr and the price could move a lot further by Xmas. I think more people are learning lessons to run profits. There are only 68m shares and there is likely to be huge demand.

I think this is a good example of what could happen to YOO next year once trading results start to come in. One very interesting factor from your post above is that funding will be needed for the major expansion into linear TV channels (still don't really understand it!). I'm not sure about the comment re all new inveestment funds. YOO was at 55p earlier this year. If sales of 40m are clearly in sight with dramatic effect on profit, pe and peg, you could see cap. going to 100m which would be share price of 80p. I don't suppose there is any indication of amount of capital required but it may be that the dilution need not be that great. An argument for this route would seem to be the need for existing technotogy, such as Trigger and Whoosh as part of the building blocks of the new facilities.

Finally, to link the two streams of thought. With ASC, you have the share of the year for 2004. Its not too late to take a heavyweight position to build up cap. value of one's personal portfolio. YOO may not be quite as dramatic next year because it starts from a higher base. What I do see as potentially very attractive is that the real run in the YOO price may not occur until the ASC price is getting over-heated, say early next year, and funds can be shifted to establish a heavyweight position in YOO (personally, I will probably link that to AZM as the timing may be similar). Hey, this is great fun this investing lark!

Eric

Nokia backs DTV
The proposition for selling digital TV services on mobile phones is suddenly looking more serious.

The world's leading mobile phone maker, Nokia, is endorsing digital TV on its next generation of mobile phones. It is also conducting international trials of the service with mobile phones in Europe and the US. And its initial findings show that users are willing to pay to watch TV on their handsets.

Nokia's general manager of Multimedia, Anssi Vanjoki, told the Nokia Mobility Conference in Monaco to expect Nokia phones incorporating digital TV receivers by 2006. The most advanced current model still uses a separate TV card to enable television viewing on the mobile phone.

Nokia reports that trials in Germany have revealed that consumers there are willing to pay at least 13 a month to watch TV programmes on their mobile phones. The trials enabled them to watch TV for 3-15 minutes a day on their handsets.

Lovelacemedia | 05.11.2004
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Er - where's my parachute! Down again today - sometimes I really hate Shares Mag tips! Though I am holding for the longer term! Bah!!!!

Poverty

I suspect the MMs see the tips before we do and just mark the price up, take our dosh; flush out the sellers; take their dosh. Then they wait awhile before moving the price down; flush out some buyers; take their dosh; raise the price but not that much; flush out the sellers; take their dosh; laugh all the way to the bank! Easy job really and we all fall for it!

Yes, YOO is a medium term buy. Seems quite likely that it will get publicity whilst people are interested in digital TV coming up to Xmas. There's never very long beteen good announcements from the company. I'll probably let my 10% of portfolio holding run until the New Year and then start to build up towards the finals, perhaps by a CFD. At least that's only 4 months to wait. OK, if you're getting excitment elsewhere!

Eric

It's my fault, bought on 20/10 and the flags go up and sp down!!
Bought as didn't think would fall back below 25p but when I have some spare cash again will consider buying some more.
The title of BB is apt, share for the future and now should be the time to buy.
I havn't seen anything so well updated, thanks Mactavish, at least it keeps me focussed on why I bought these rather than panicking at the current sp.

what the *** is going on here?