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.

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.

"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)"

That report's a joke imo!

The jv with WH hasn't even started yet due to WH's aquisition so how can that be a dissappointment?

When it does start (2006) WH will have about 50% (if I remember correctly) more shops!

-Maybe they need a new broker.

"Personally I cannot see how they come up with that from reading the results"

Come on guys are you for real?

They are technically insolvent and need more cash as their burn rate is huge. No potential can over come those issues. They need to raise more money fairly quickly.

Stringy Hi,

I quite agree !

I guess they are just peeved that YOO didn't live up to their bullish forecasts, so to save a bit of face next time, they have run them right down, then if they do really well, you know who gets the credit for saying buy at 7p ....

Cheers,
PM

Where have all the big gobs gone who were telling us all how these would be cash positive by now ???

They are in the sh*te and sinking deeper and deeper into. it.

Another thing I don't like is companies who year after year have high "exceptionals". Some of YOO's "exceptionals" appear to becoming the norm !

Scrip , be interesting to see what Shares make of these latest figures , lol.

What do evg know about anything?

PM1

How come you have are privy to the brokers note??

Respect as always

PSLeon, you can register for free on the below link for the brokers note.


http://www.evbgresearch.com/

PS Leon Hi,

I'm not really 'privy' to the brokers note :)

As Tangle says, you can sign up to get access at http://www.evbgresearch.com/

.... so long as you have an e-mail that is allowed, hotmail and other 'free' e-mail systems are not accepted !

Cheers,
PM

looks like you guys were right. Mass departure from terminal YOO...

Wake up guys for goodness sake.

PM is and has clearly been a ramper who can't read financial reports. I am not a de-ramper and do not and have never had a position on YOO. After many years in the market I just hate to see people hood winked. YOO needs cash.

what a great bargain these are at the moment

And what a better "bargain" they will become.

They are technically insolvent , which bit of that don't you understand ???