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.

I don't think this one will be held down today for much longer...

Forget headline figures look under the sheets to see what is really going on. Companies can post pretty much any headline figures they like.

The market doesn't like it because they have burnt through a huge amount of cash and need to raise money to keep going. They are not generate enough cash to keep the business going. They need to raise more.

Cash balances last year at the same time were 6.1m, they now have cash balances of 500k! In the six months to 30th June they burnt through 7.5m more cash. They took on 1m more in debt but that was about all they raised during that period.

Since this company came into existance they have raised 73m from shareholders and lost 44m so 60p in every 1 they have raised has gone.

Unless they raise more cash soon to give themselves a chance that figure will likley increase.

There seems to be a lot of buying despite that fact Scripophilist. In my eyes I think YOO is more about potential, but I take your point. The share price has dropped substantially in the last 12 mths, so I think the cash bal has been factored in to a degree. As always though, time will tell the story. I'm holding for now.

26 September 2005
BroadbandTV Group and ntl to conduct live trials of next generation interactive programming on digital cable.

ntl and BroadbandTV Group, the joint venture between YooMedia and ICTV, are pleased to announce that, following successful joint lab testing, live trials of broadband quality interactive digital television programming and technology will be conducted in the fourth quarter of this year. The trials will take place in selected ntl digital cable households.

The trials will also fully demonstrate the capabilities of ICTVs HeadendWare technology, enabling the delivery of vivid, interactive web based programming content on ntls existing standard cable set-top boxes.

BroadbandTV Group has developed and aggregated a wide-ranging interactive programming package for the live trials, within the genres of News, Entertainment, Games and Lifestyle. In doing so, the BroadbandTV Content Partner Programme has been significantly extended and now represents a range of globally recognised names in broadcasting. ntl customers will be able to enjoy content from a number of partners including ITN, MTV Networks, Emap, Turner Broadcasting, Sesame Workshop and UKTV

The trials will fully demonstrate the capabilities of the Groups proprietary technology, enabling the delivery of vivid, interactive web based programming content on subscribers existing standard cable set-top boxes.

YooMedias Group Managing Director, Neil MacDonald, said A huge amount of work has been undertaken with ntl in the last year in order to integrate the Broadband TV technology with their infrastructure and various set top boxes. We are delighted to be entering into consumer-facing trials with such a strong line-up of programming content.

Jeff Miller, chief executive of ICTV, added: This next phase of trials represents a key milestone in establishing the value of the BroadbandTV Group proposition as a fusion of high-quality interactive programming and cutting-edge technology.

just bought 40000. looking to a futher 40000.great results get in now.

they have spead big to put of buys. some one must have a buy note. to fll.

Be careful guys. I must admit I prefer cold hard cash more than potential. There is always plenty of the latter about but very little of the former.

Courtesy of axe79.

The news is that YOO is doing several presentations to analysts this afternoon and later this week.

MS has just returned today from abroad having done some yesterday as well (yes, it was Sunday!). Now that the Interim results have been published our Chairman is wasting no time in dealing with the interest being shown from the city.

The new additions to the board are top drawer, and they would not have joined (leaving behind quality positions) if the future wasn't exceptional.

Private investors can expect EVO's note soon which will add to the positive sentiment being shown by the funds

back to12p very quickly. you bet.

or at least 11p by wednesday perhaps! but that is a guess on my part...

What a pile of crap ... padded out with the usual "jam tomorrow" story.

Cash positive my ar&e , there will a discounted rights issue coming your way in the very near future imo.

Either that or bust by xmas !

I disagree Dil. There is no Jam tomorrow story, the results are there for everyone to see - this is an AIM stock after all. Its a gamble and your either in or out.
I've given my opinion so I won't repeat here again.

cheers
skids

Yep ... cash burn is there for all to see , dyo sums.

How many months Dil, it looks desperate unless they can find some more cash?

Probably had to wait to get these interims out of the way first Scrip thats why they've padded them out with a load of irrelevant rubbish and jam tomorrow stories.

No mention of "cash flow positive" in the forecast as there was last time so things must be worse than they were forecasting before.

Next week maybe ?

The 4.9 million difference between current asset and current liabilities needs addressing very very soon.

So technically tey are insolvent then! LOL!

big broker buy gone through.

skids,

Which broker? How big?

Don't have level 2 yet.

mactavish Hi,

"Private investors can expect EVO's note soon which will add to the positive sentiment being shown by the funds "

Sorry dude, I just read it, and they say REDUCE with a target of 7 PENCE.

Personally I cannot see how they come up with that from reading the results, but there you go, back to long term on this one.

Cheers,
PM

Update Price/Target: 10p/7p

Delivery improving
There is clearly a massive market opportunity, management is beginning to
deliver and gross profits have jumped. However, we believe the market is
being a little optimistic about near term prospects.

Interims results show that whilst Yoomedia is clearly behind our previous
expectations, it is achieving reasonable progress. Gross profit has now reached
5.0m and the EBITDA loss has fallen from 3.7m (2H04) to 1.1m. Looking
forward we anticipate this will halve in the current period.


Operational review

At the time of the DITG acquisition last December, management outlined a
number of proposed initiatives designed to accelerate the profitability of the
business. Progress was slow and delivery slipped in a number of areas, thereby
compounding the disappointing results from Channel 425 (joint venture with
William Hill).

Following the management changes (announced Jun-05) delivery has greatly
improved and the business now appears to be operationally moving forward.
However, the company will not be able to make up lost time and is likely to still
report a loss for the full year. Notwithstanding, investment in new initiatives has
continued and a number of projects are beginning to come through.


Initiatives delivered so far this year

The Dating operation is building its online presence, especially through
marketing. Online revenues are doubling each month. To further this
online growth, the Dating management has been strengthened with the
appointment of Jose Adams (formerly MD of Yahoo! Europe Personals &
Dating).

Mobile dating services launched on 3 Aug-05 initial response has been
very encouraging.

New gambling products have been developed, where more of the margin
can be retained. Avago on Sky has been refreshed, maintaining its
position despite competitive pressures.

Mobile gaming products released in August, securing third party
distribution deals. Using the Avago brand.

NHS Direct interactive TV services launched Dec-04, with functionality
enhanced during the first half. Financially this has been successful for
Yoomedia.

Launched Yoo Play TV channel in conjunction with Channel Five, who are
cross-promoting the channel. Piloting cash prize model.

ntl and BroadbandTV (the joint venture between YooMedia and ICTV) has
announced live trials of broadband quality interactive digital TV
programming for 4Q05. The aim is demonstrate how to enhance the
interactive capabilities of existing cable set-top boxes.


Which parts of the business have been financially successful?

Yoomedia Enhanced Services performing well Test the Nation (BBC),
Millionaires (ITV) type projects delivering solid contribution

Contract Yoomedia has with the Department of Health for the NHS Direct
Interactive TV Services

Online dating revenues dating are growing monthly

Avago on Sky maintained its market position


Which parts of the business have disappointed?

Experienced delays on certain key developments (e.g. launch of mobile
gambling), though a number of these are now being delivered.

Channel 425 (joint venture with William Hill)


Recommendation

During the period net funds moved from net cash of 5.0m (Dec-04) to net debt
of 2.9m (Jun-05). A principle reason for the 7.9m movement in net cash was a
4.7m working capital outflow. This, combined with the EBITDA loss of 1.1m has
put a lot of strain on the balance sheet and the company has re-negotiate terms
with its banks. The facilities have been extended to 6m. Therefore, whilst the
cash position remains tight, the company is reviewing expenses.

On the positive side gross profits have materially moved higher and the team has
started to deliver upon the promised initiatives. On the negative side the move
into PBT profitability has been delayed for at least one year. In addition, the
magnitude of the near-to-medium term profitability is likely to be lower than
previously hoped for. Whilst we had previously hoped for a 3.8m PBT in FY05,
we now envisage a 4.15m PBT loss. In addition, we expect only a modest PBT in
the 12-months to Dec-06 (circa 0.5m).

There is clearly a massive market opportunity within interactive entertainment
space. In addition, under the new stewardship of Neil MacDonald, management
is beginning to deliver. However, we believe the market is being a little optimistic
about near term prospects. With an EV of 42m (market cap. 39m and net debt
3m), there appears a degree of hope-value in the share price. Therefore, the
shares could drift lower as we wait for more positive financial results to come
through.