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.

Nice.

Yoomedia PLC
05 April 2005


5 April 2005

YooMedia PLC ('YooMedia' or the 'Company')
Director Shareholding

YooMedia plc ('the Company') has today been notified that on 5 April 2005
Michael Sinclair transferred 1,000,000 ordinary shares of 1 pence each in the
Company ('Ordinary Shares') to the Sinclair Charitable Trust (a registered
charity of which he is a trustee). Following the transfer, Mr Sinclair has a
beneficial interest in 24,450,660 Ordinary Shares, representing 5.35 per cent of
the current issued share capital. This transfer has been made at nil
consideration.



This information is provided by RNS
The company news service from the London Stock Exchange
AFMISISEFL

From Nissi Beach on another BB. Thanks Nissi


Nissi beach - 4 Apr'05 - 12:00 - 7067 of 7207

quick post in between meetings

good results after the clear out. all the bad news is out plus they have stored up some provision for next year. Onerous contract amount 2.3m might be a sand bag (techinical accounting term for being OVER prudent) without breaking any rules

Well done on that now Q1 can be clean and on profit

So average 8m per month rev which most must be Avago (say 5m v 3m from others including whoosh)

Using the 10% drop(GM%) indicated in merger docs gross margin 1.5m per quarter
Using 30% GM for other business (we know margin for dating and whoosh are very high)

Total GM for every quarter from now 4.2m on 24m revenue

Total costs indicated in merger docs of 1m per month making 12m over year

Extra saving above the 2m should make this 10m pa or 2.5m per quarter

So we have 1.7m per quarter operating profit

Q1 Q2 Q3 Q4
Avago 12 15 18 18 63
other 6 9 9 9 33
Rev 18 24 27 27 96

Avago 1.2 1.5 1.8 1.8 6.3
other 1.8 2.7 2.7 2.7 9.9
GM 3 4.2 4.5 4.5 16.2
Admin 2.5 2.5 2.5 2.5 10

profit 0.5 1.7 2 2 6.2

Goodwill 0.425 0.425 0.425 0.425 1.7

PBT 0.075 1.275 1.575 1.575 4.5

EPS 0.98

SP at 30x 29.35

Above are very conservative and do not include much growth

Yoomedia also stated the company will grow ORGANICALLY throughout 2005, indicating several new product launches. As the group moves into profit through H2, I see no reason why market will not award a PE of between 30 and 40. At the present rate of expansion, this is well justified.

So even if Nissi has overestimated the EPS, by 20%, EPS 2005 0.8P * a PE of 30 = 24p. Considering the market always looks forward, the rerating may be close.

Sky are on a PE of 35, so expect a PE of between 30 and 40.

So if Nissi has missed by 20%, the upside may still be 32p.

For those with the patience to hold through 2006, the Sky is as blue as it gets!

Eric & iPublic

What very interesting figures...hubby understands these things better than me (ex. accountant & a geogdie too) and he's smiling so that's good then!!

Thanks Ruthie

Thanks iPublic - interesting to see what evolution will say.

Hi, Ruthie - when you say your hub is a geogdie, does that mean that Newcastle is the centre of the universe, or just the world! We tend to smile when some money comes in or The Toon win which is just about as rare, or the lads behave themseves, even rarer! Also 'gannin alang the Scotswood Road to see the Blaydon races!' Does he sing that to you when you've been a clever girl?

wor Eric

EW

LOL

What you sipping there?

Gis a Bruun Jack!

http://mwprices.ft.com/custom/ft-com/multex-estimates/headlines.asp?region=&subtab=2&industry=&q=YOO&s2=&extelID=&ticker=UK%3AYOO&countrycode=&sid=&symb=YOO&selected=Yoomedia&company=NEW∈=&sedol=&ftep=&FTSite=FTCOM&country=

Sales (in millions)
Year Ending Dec-05 1 142.90 142.90 142.90 35.00
Year Ending Dec-06 1 197.50 197.50 197.50
Earnings (per share)
Year Ending Dec-05 1 0.80 0.80 0.80
Year Ending Dec-06 1 2.00 2.00 2.00
Profit (in millions)
Year Ending Dec-05 1 3.80 3.80 3.80
Year Ending Dec-06 1 9.00 9.00 9.00
Dividends (per share)
Year Ending Dec-05 1 0.00 0.00 0.00 0.00
Year Ending Dec-06 1 0.00 0.00 0.00

2006 profit 9m

9m / 500m shares (allowing for some options and aqusitions) = 2006 EPS 1.8P

PE OF 30 = price target of 54p

BUY BUY BUY!!!

0.8P EPS is THIS YEAR!

PE OF 30P = short term target price of 24p!!!

Sky are on PE of 35!!!

BUY BUY BUY!!!

EVO have a 2005 target price of 20p. Based on an assumption of PE 25 * EPS 0.8P.

EVO do not state a target for 2006, but they clearly forecast 2006 EPS of 2p. Therefore, using the same PE assumption of 25, EVO's 2006 target is 50p!

2006 EVO estimate means YOO are currnetly on a PE of 8. Clearly a huge rerating this year, providing the business plan is executed.

My personal target:

Sky are on a PE of 35. Business is 15 years old and listed for 10 years. It is therefore reasonable to assume an actual PE, when YOO 'bring home the bacon H2 2005' of 30 to 40. I will assume 30 for 2005 and 2006.

A PE of 30 * 2005 EPS of 0.8p = target price of 24p

A PE of 30 * 2006 EPS of 2p + target price of 60p.

Choose your PE.

You must contact your broker to obtain the research and please e.mail Nissi for his outstanding spreadsheet and forecast.

Yoomedia have 40m of tax losses to set off against profits, so yoo will probably be retired, before YOO pay any corporation tax!

House Broker Evolution, is forecasting 2006 Earnings Per Share of 2p, with an implied target price of 50p.

Current forward PE of 8.

City is looking at 2004 results only, yet big turn around occured Q4, 04 and particulary Q1, 05. The figures from now on will impress.

If a forward PE of 8, within a reasonable timeframe of one year does not excite yoo and an implied target price of 50p, then nothing will!

Are yoo excited by an implied 50p target price? Any input would be appreciated! All within a realistic time frame as well!

Yoo must concentrate your thoughts on the possibilty's for the share price, rising sharply. Do yoo realise, even if EVO's 2006 forecast is wrong by 50%, the SP will still be at least 25p in 18 months and 35p with a PE of 35.

How many broker forecasts do yoo read, where a 50% estimate miss for the following year, STILL provides a mimimum return of 50% on todays price???

If EVO are correct, then it's 50p+ next year, that is in a realistic timeframe, NOT 2007 & 2008, which they have gleefully applied to other company forecasts.

iPublic

Thanks for that...I think I've got the message. ;)

Regards Ruthie

No doubt in my mind, Yoomedia solutions is the core driver for the SP this year and next.

Gross margin is 100% and with no variable costs, a successful Solutions division is key.

In March, Solutions were estimated revenue of 1.18m with fixed costs of 0.9m

FY 2005 estimate is revenue 15.33m and fixed cost 10.6m. So revenue is expected to grow and fixed costs reduce slightly on an annulised basis.

With no variable costs to apply and fixed costs remaining the same, a greater than expected stream of business for Solutions over next 12 months, say 10%, will have a dramatic effect on FY EBITDA for Solutions.

My gut instinct is Solutions is the divisions that will shine the most.

EVO forecast 15.33m 2005 revenue. Lets assume say 16.8m, a 10% outperform for solutions.

Fixed costs remain 10.6m, with no variable costs to worry about.

EBITDA for Solutions could be 6.2m and not 4,73m!, big jump is because fixed costs remain the same. The increase in revenue goes right to the bottom line.

Therefore a surge in business for Solutions, will offset any miss in estimates for the Gambling division.

Lets speculate the EVO analyst is correct and Sky's Vegas, inpacts on gambling revenues by 20%. Quite a dramtic shock, that would be! EBITDA for Gambling would be Revenue 95m - Gross margin 5.5m so Gross contibution - 5.22m - 4.4m fixed costs = EBITDA 0.8M. I'm assuming variable cost will reduce accordingly, as sales fall.

Solutions can easily offset this possible future problem, as it is already the most important contributor by far.

A small rise in actual Solutions revenue forecast, of say 10% above EVO's forecast of 15.33m, more than compensates for a 20% decline in gambling revenues.

EVO forecast 15.33m Solutions revenue. Possible outperform 10% = 16.8m Solutions revenue. This goes straight to bottom line EBITDA, as no variable costs, so 16.8m - 10.6, fixed costs = EBITDA 6.2m for Solutions.

If there is a weak link, it will be gambling, due to Sky. I have demonstrated a 20% gambling revenue miss, can be offset by only a small, realistic 10% rise in revenues for Solutions.

Gambling: YOO would be EBITDA 1.25m worse off if Sky force a 20% drop in forecast revenue. Broker forecast: 2.05m, actual 0.8m

Solutions: YOO would be EBITDA 1.5M better off, if division outperforms by 10%. Broker 4.73m, actual 6.2m

In summary, if forecast gambling revenues crashed 20% (not impossible) but forecast Solutions revenue increased just 10% (very likely, as Solutions include Mobile) then Yoomedia will be EBITDA better off by 0.25m!!!

A large portion of variable costs is made up of sales, so I assume this figure will decline in line with any falling revenue?

I do not consider the Dating divisions growth to be under any realistic threat, considering current plans for mobile video 3G dating and advanced plans to launch a dating channel in UK and America.

Does this make you feel more relaxed about risk. Please answer to carry on debate.

Am happy to be corrected of above is inaccurate.

Big issue is gaming division.

Using EVO March estimate, current EBITDA is -0.15p so the FY EBITDA for gaming is a -1.8m, assuming no change.

EVO forecast 2.05m EBITDA FY 2005. As Malkie suggests this is aggressive, but remember organic growth is planned very soon, so targets may well be reached. It may be possible, as in September EBITDA was -0.40m for gaming, now it's -0.15p, estimate. Gaming EBITDA trend is turning positve very soon.

However, if gaming EBITDA can reach just FY2005 EBITDA 0.8M, perhaps more realistic, then this can be offset by a 10% outperform in Solutions, see above post.

Also the Solutions 10% outperform hope is VERY realistic, as the current rate in March for Solutions was EBITDA 0.28P * 12 = 3.36p for year with no growth rate. We have that now, no questions asked!

We know current Solutions growth rate is 300%+ so even though that may well slow, we have an excellent chance of reaching Solutions EBITDA of 6.2m. Solutions growth could slow dramtically and we still arrive at EBITDA 6.2m.

So Solutions could easily cancel out an underperforming Gaming division.

Place my head on the chopping block and I say Gaming 0.8m EBITDA and Solutions 6.2m EBITDA leaving Yoomedia 0.25m EBITDA better off, for these two divisions.

Therefore the 2005 EPS of 0.8p and the 2006 EPS of 2p is still on course.

If Gaming + Dating perform as EVO predict and Solutions perform as I predict, then it's Whoosh!!!

Of course, if Gaming, Dating and Solutions all outperform, then the effect on bottom line EPS will be tremendous and we can all retire!

In September 04, Solutions revenue was 0.58m

In March, estimate 1.18m

EVO FY 2005, forecast Solutions revenue, 15.33m

Multiply the March estimate by 12 and you arrive at 14.16m.

On page 8, EVO state annualised revenue growth from Solutions is >300%. Margins are 100%

Why are EVO assuming a month on month, revenue increase for Solutions of less than 1%. They state on page 8, annualised Solutions revenue growth is >300%

I don't understand?? Please help?

Have you seen the incredible impact on Solutions EBITDA, if the revenue for 2005 is 20m and not the 15.33m EVO predict. Imagine the impact on EBITDA, if the Solutions revenue was 23m.

Gross margins are 100%

Would the fixed costs go up accordingly.

EVO have kept the fixed costs the same for FY2005, on an annualised basis compared with March, even though they forecast an amount of revenue growth.

Why is the Solutions revenue growth estimate so low, when the annualised growth rate is >300%, stated on page 8.

Am I correct in assuming this division is the most important, with 100% margins.

I am now assuming the current EPS forecasts for this year will be smaashed, if Solutions can bring home FY revenue of 20m+

The fixed costs could go up with the extra business, but not enough to stop run away EPS, due to 100% margin.

Feedback please.