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.

Andysmith

Established, respected institutions like LloydsTSB and Perpetual, taking a >3% stake in the placement, does indeed inject me with renewed confidence. One can be sure they were priviliged to information on the business plan, not contained in the aquisition letter to shareholders. My strong gut feeling is a return to the mid 20's by the end of Feb and as a consequence, will be buying another 50k, before 21st Feb.

iPublic, I'm not doubting the backing that it has, nor that it will become successful it's just that at this moment there are better ways to make some money quickly (other than being on the board of YOO!!!). If I clear some profits in the coming months and we have some early projections of the new YOO I will probably re-join as I believe it has the prospects to prosper but need my dosh back first and more quickly than YOO will probably recover.

Fair enough.

That's the gamble of course. Let's hope we are both correct.

Full credit to Malkie for the story - very interesting!

malkie - 15 Jan'05 - 14:11 - 4693 of 4693

Not new - but interesting anyway......

Malc

Raising the red button stakes

William Hill's takeover of a channel and the launch of a celebrity reality poker show make gambling the favourite to become interactive TV's most lucrative application. Sean Hargrave reports

Monday August 23, 2004
The Guardian

Interactive television has tried all manner of new media services searching for its "killer ap" but it now seems clear the frontrunner that television executives should be putting their proverbial shirts on is one of the oldest forms of entertainment - gambling. As HSBC this month joined a list of banks who have ditched the medium, casinos and bookmakers look set to start filling the void. At the front of the pack is William Hill which within two or three months will take over and brand a channel dedicated to virtual gambling, which has already been set up by DITG, the company behind the bingo and virtual casino television station Avago.
At the same time, plans are being drawn up for the country's first 24-hour celebrity poker show that will be broadcast in 2005. The show, which Challenge TV sums up as where Big Brother and poker meet, is the result of a deal with a fledgling gambling channel in America, CGTV. The latter has bought Challenge's programme library, which includes several poker shows, as well as going halves on new programming, including the planned show Poker Hotel.
"There's a real buzz about poker among the public so we're going to get four or five celebrities and pitch them up against the best poker players in the world," promises Jonathan Webb, Challenge's Controller.
"We're going to put it in a classy place, probably a hip hotel, and you'll be able to really see what the celebrities are like. The top players have a poker face you can't see past but it's when a celebrity is bluffing on his last bit of stake money that the tension really shows and they're stripped - it's that democratic nature of poker that makes it so popular with viewers."
For those who want to play as well as watch poker on their television, Challenge is due to launch Casino Casino, which allows Sky viewers to press red and get dealt a virtual hand for fun, rather than money stakes.
"A great encouragement for us is that on Sky, where play-along is offered, viewers stay for twice as long as cable, where it isn't offered," says Webb. "It's illegal for us to allow people to play for money so it's just for fun. With the proposed relaxation of gambling laws, we'd hope to one day offer poker for real money, but not for the time being."
Although changes to the country's gambling laws being debated in parliament are not expected to be implemented until 2006, there has already been some relaxation in attitudes that has allowed one channel to offer the first real (rather than virtual) play-along casino game.
Last month's launch of roulette on iSports was important for interactive television, according to Damian Cope, the managing director of the channel's operator DITG. Although roulette has always been one of the most popular games on the net, television broadcasters are banned from allowing the public to gamble on live, real card and casino games.
"The main regulatory concern is that games have to fixed odds, just like a bet on which football team will win on Saturday," Cope explains.
"Obviously card games aren't based on fixed odds because there are so many variables. Roulette is fixed-odds, though, because you can see all the numbers and there are only so many slots the ball can land in, and so, after some discussions, we were allowed to put the game up."
This has come in time for William Hill's planned branding of the channel in either October or November. David Harding, the bookmaker's CEO, reveals that he decided to "launch" a television channel because online has worked very well for the brand and showed no signs of "cannibalising" its high street business. Hence he is confident that television gambling will be huge, and not at the expense of the bookmaker's shop, internet or phone operations.
"We've been looking at interactive television for quite a while," he reveals. "It has always been too expensive in the past, but now you have what I call a "gatekeeper" like DITG that can sit between someone like us and Sky and have a channel already set up for them, it has become a much more affordable option for us."
Soon after William Hill rebrands the iSports channel, DITG will begin trials of fun poker on its Avago channel, which it hopes will then be taken up next year by William Hill.
The interactive television broadcaster also launched the world's first real-life game where viewers can guess which pig - numbered one to 10 - will be picked out of a pen by a farm hand. The Squeal of Fortune game was launched last week to viewers watching Teletext through C4 on the Sky platform.
According to Robin Bosworth, director at the television and telecommunications consultancy Schema, the huge growth in gambling and betting on interactive television stems from Sky's success with its Sky Bet service. This offers fixed-odds betting on many popular sports and provides the odds for C4's Attheraces channel, and has proved to other operators how receptive the public is to pressing red and placing a wager.
"The UK is unique in that you've got digital television in more than half of households and you've got one of the most liberal gambling regimes in the world," Bosworth says. "So, it was always going to be the leading market for interactive TVgambling and Sky Bet has simply shown the way and it's not surprising that others are following."
In fact, the market is so huge that Bosworth estimates it will be worth 600m this year and will increase 70% next year. This is appealing to bookmakers and casino operators, he believes, because the growth does not come at the cost of online or high street betting because it appeals to a new market.
"The really interesting thing is how television is changing the dynamics of the market," he explains. "In the high street only around 5% of customers are women but with television that jumps to around 20-30%. It also appeals to people that would not normally think about going to a betting shop but are open to watching sport or a virtual casino game and having a flutter.
"The really clever thing the likes of Avago are doing is building up a community side where people can 'chat' via the show so they've got a feeling of being among friends."
The huge growth Bosworth predicts for the market not only comes from continued enlargement of today's services but also through combining gambling and television shows, such as the planned Poker Hotel. "When you look at it, the biggest thing on television now is participation television," he says. "Whether it's Big Brother, Restoration or Strictly Come Dancing, people want to interact with a show. If you add gambling to the voting those types of shows offer, then you're going to get phenomenal growth."

I will give YOO a couple of weeks - wish I'd never bought the bloody things after the Shares Mag hype in October! After that I must take a view on where they are going medium term.I want them to do well but feel soured by the recent events with the reverse takeover and the huge dilution of my share value. EW Robson and pals seem to be endlessly optimistic, though aggrieved of course, I just feel aggrieved!

iPublic, andysmith

iPublic's finger is definitely on the button, in my view, in terms of the significance of Feb 21st. I have a listing of shares in priority sequence on the timing of significant anouncements or trading statements: ASC (21st Jan.), SEO (prob. Jan), MDW ("imminent"), PDX (7th Feb), YOO (21st Feb.). Tactics are, if all goes well, to move funds on, or close position, as timing allows. Hopefully, therefore, I will be building up YOO position a couple of weeks in advance of the statement from EVO. Dangers are, of course, that either the other situations don't break for me and/or buying of YOO builds up too soon. Oh well, that's of the essence of this trading game!

The Gull

I doubt whether competition is a major factor here. We are talking about an exploding market and therefore several years where there is plent of room for the major players. YOO are well positioned for a major share; the EVO statement should turn this into numbers which will have a strong influence on the market. As iPublic has said, their presentations have brought in a number of major investment houses (albeit at a knock-down price) and this offsets risk fears. I have little doubt that YOO passes the 3:1 up to downside criterion.

Eric

Eric

Poverty,
ipublic & Eric are right, YOO will be good mid-term if you were buying and holding now. Trouble is sounds like you were in the same boat as me, bought high and took a hit. It bugs you everyday its in your portfolio as you don't like taking losses. When it rose to 20p the other week I thought here we go, mid-twenties soon and get my dosh back but some people off-loaded loads and down again. I am up 15% in 2005 so I got out to concentrate on other potential rather than dwell on YOO and I feel a lot happier about it, it's gone.

EWROBSON

I am speculating on EVO releasing upgraded research/EPS/revenue estimates, last 10 days of Feb. On the morning of publication, YOO will also release news, agreement, contract, sending the shares higher until mid morning, when the combined effect of company news and the EVO research should send investors into a buying frenzy!

Thats the theory anyway.

Poverty.

Forget the past, it's history. The only question you need ask is, are Yoo a good play at 17.25p. If yes, then buy some more, as I have already done.

Everyone.

Thinking about the options, things are not as bad, as I first thought, providing one has the dosh and bottle to buy sub 18p. The nature of options is the individual benefitng, will not take the options, unless he/she will show an instant, safe profit. Therefore, I suggest, none will be taken before the mid twenties anyway, so it will not be dilutive until the SP reaches at least the mid twenties. So if you can buy now, the options don't come into play, until you see significant growth on your new money. Also, these are not free shares, Yoo will receive 15p for each share granted, so that's a significant amount of working capital, coming the groups way, offsetting the dilution in part.

I've been looking at YOO for sometime and thankfully didn't buy in last year for a vartiety of reasons. There is obviously a lot of bitterness because of recent events but that is firmly in the past. It was badly handled, even immoral, but its done. The question is what about the future. I think that the possibilities of "Digital" are only just being explored and that there is a massive amount of innovation to come. YOO look in a strong position with some good platforms and plenty of experience, so I am in today at 17.62 - let's go!

Jimwren

Have you a target price in mind.

The grass may look much greener in 18 months, with say, 6 additional channels on SKY, Cable and Freeview, including a dating channel. The channel on Freeview would use our mobile technology as a return path and would be a first for the platform. Then remember it's odds on Yoo will provide content, technology for the new ITV4 interactive channel and the international expansion talked of recently.

Market cap of 250m is achievable.

We are an interactive BSKYB, capable of broadcasting on all platforms. On a two year outlook, the shares appear very cheap, providing the management can execute.

I.M.H.O.

Out of the thousands of companies available, can anyone (iPublic apart!) seriously place YOO among the likely best 6 - 10 performers for the coming year? Every way you look it has huge hurdles to climb and I doubt that the management structure that came with the merger is the best for the difficult decisions that have to be made in the future.

Iturama

"Every way you look it has huge hurdles to climb"

Please enlighten us. What are these huge hurdles?

Yoo are now the only company, capable of mounting a serious challenge to SKY's interactive dominance. This is a fact, not a ramp.

"and I doubt that the management structure that came with the merger is the best for the difficult decisions that have to be made in the future."

Why is wrong with the management structure?

What are these difficult decision to be made in the future?

The enlarged board have already proved they can successfully integrate aquisitions. They have already proved very capable of launching new televsion channels, Avago and the William Hill branded channel 425, which launched in October.

Please elaborate so your concerns can be discussed.

iturama

I think its a good way to look at share acquisition to rate a share as to whether it should be in your portfolio at the beginning of the year. I work on the basis that, if I don't feel the share should be average weight, typically 10%, it shouldn't be there at all. I have 8 different stocks: 2 overweight, 2 average, 4 underweight (i.e. 5%), including YOO. However, I am happy it is there (I have put the past behind me) and propose to build the holding up before 21st Feb. Its fourth in the list of significant dates so I am hoping it doesn't move over the next couple of weeks or so. Expectation? Very little downside to double on upside; good ratio. Management well proven over last couple of years. Lead position in strongly emerging market. So, don't accept the logic of your argument.

Eric

Freeview reaches 5m home milestone

Freeview, the UK's free-to-view digital terrestrial television platform, has reached its 5m household milestone, thanks to record Christmas sales of receiver devices.

According to the BBC, which operates the platform with partners Crown Castle and BSkyB, 1.5m digital terrestrial set-top boxes and integrated digital television sets were sold in the three months up to Christmas Day.

In each of the two weeks before Christmas, a record 190,000 receivers were sold, beating Christmas 2003's best of 140,000 sales in one week.

The rapid take-up of Freeview appears to be making the Government's aim of switching off analogue television by 2012 more attainable. According to research by the BBC, over the past two years the proportion of viewers who say they will not get digital television in the next year has fallen from 35% to 21%.

Ilse Howling, BBC head of digital marketing and communications, said: "It's fantastic news that so many people are now switching on to digital television and the BBC's six extra channels through Freeview and other platforms. Free digital television has a huge appeal and shows no signs of slowing down."

The Government is poised to announce a timetable for digital switchover. Culture secretary Tessa Jowell is due to deliver a keynote speech on Thursday at the Oxford Media Convention.

The potential here is mind blowing. I sincerely hope the new board, are making a presenter led, interactive channel on Freeview, a top priority.

5m customers and no other competition, due to no retrun path. It's worth 100m on the market cap alone. This is not a daft claim. Freeview is crying out for a way to allow viewer participation and there is a massive gap in the market.

Imagine all the low income brigade, sitting at home on day, with their benefit to spend.

I don't care what the SP does tomorrow, next week or next month. This is the way it's going and when it does, watch out above!

"Low income brigade" who the f--k do you think you are smart arse,some of us work for a living.
we might not have millions but we pay are dues and we can play the shares game too without twats like you being clever.

955i

Did not mean to cause you any offence. Apologies.

I was refereing to Yoomedia target audience. This consists of many millions of people who fall into the following categories. Housewifes, single mothers at home, unemployed, students, yound people, retired folk sitting at home. All these groups tend to spend much time at home, often spending hours in front of television, as a rule of thumb. Bookmakers actually have a saying for the group of people who provide their daily bread and butter and this is a term called 'the giro boys'.

If you are on a low income, yet at work, then perhaps you will find time to use Yoomedia's products in the evening, when collapsed in front of the television?

Typically, an individual who might be refered to as a 'low income bandit', will spend much of thier small disposable income on gambling and home entertanment, in an ulttimately fruitless attempt to improve their lives. I'm not being disrespectful, simply taking a realistic view of society, as it acutally is.

iPublic.
My main point is that there are several thousand UK listed shares and the typical retail investor holds less than a dozen. Would I rate YOO to outperform the rest before (say) summer? The answer is no. Why wait to make a profit? Is there any real merit in giving up short term gain for long term?
Yoo has been on an acquisition spree, the main acqusition being DITG, a loss maker. The Yoo management has now got to show that it can handle the integration and rationalisation of those companies and come out the other side profitable. However, the merger was so friendly that it has incorporated much of the acquired management and enlarged the board. There are advantages and disadvantages to this. The advantage is the acquired know-how, the disadvantage is the natural resistance to the changes that will have to be made. Those changes affect all facets of the company and the difficulties and costs involved are invariably underestimated.
Not to mention the arbitrary track record of this board with regard to its shareholders, and the huge share overhang.

i Public,thank you for the apology,my abuse was uncalled for,perhaps I was being a little too sensitive,I am a holder of a few so also on your side and hanging on despite the opinions that there is faster money to made else where.

The Enlarged Group Board expects to be able to implement minimum cost savings of
approximately #2 million for the Enlarged Group per annum. Principally this will
be through the removal of duplicated fixed costs and the increase in purchasing
power.

iturama

This deal had to happen, or I fear Yoo were in danger of being left behind. It makes perfect sense and Yoo can now become the company I've always dreamed they would be.

A channel on Freeview would be so profitable, it would more than justify the market cap alone. To the best of my knowledge, no one else, is capable of providing a return path on this platform.

Only my opinion of course and we shall see in good time.