Cellcast plc
AIM : CLTV

Cellcast plc

January 13, 2006 02:04 ET

Cellcast plc: Trading Update

LONDON, UNITED KINGDOM--(CCNMatthews - Jan. 13, 2006) - Cellcast plc (AIM:CLTV), a global interactive digital broadcaster, today provides a trading update for the 12 month period to 31 December 2005.

The Directors are pleased to report strong performance in both trading and business development during 2005. The Company is confident of exceeding market expectations for the year ended 31 December 2005.

UK operations and programming continue to build a strong audience base and viewer participation, in a media landscape being reshaped by the convergence of television, mobile telephony and the Internet.

The Company's proven business model is generating new sources of income and is attracting new broadcast partners worldwide. Cellcast is pursuing market entry strategies across five continents and recent developments include:

China

Cellcast has entered into a new joint-venture with Shenzhen New Power Technology Limited to develop and distribute interactive television entertainment for the China market. A key strength of the joint-venture is New Power's national billing agreements with China Mobile and China Unicom.

The first programme developed by the joint venture is a daily reverse auction, 'Bid2Win', broadcast on TVS-3, one of the leading entertainment channels in Guangdong, China's richest province. 'Bid2Win' is also accessible via the Internet and China Mobile's WAP portal.

China has the world's largest mobile phone market, with more than 377 million mobile phone subscribers, an average of 29 mobile phones per 100 people.

China has seen tremendous growth in the usage of SMS, and it currently accounts for one-third of the world's SMS messaging. According to Pyramid Research, by 2007 SMS revenues in China will escalate to Pounds Sterling 9bn, generating greater revenues than all of Western Europe. As China Mobile and China Unicom struggle with declining average revenue per user (ARPU), SMS and MMS are gaining momentum as a driver of revenues. According to China Mobile, the country's leading telecom operator, in the past year its users sent over 700 million short messages a day, and revenue from data business now accounts for 20% of China Mobile's total earnings.

John Cheng, Chief Executive of Shenzhen New Power Technology Limited, said "Significant revenues from premium mobile content are being captured by Internet portals such as Sina Corp, Sohu and NetEase. However, the penetration of television in China is many times higher than that of the Internet, and the TV stations are keen to share in the mobile entertainment market. Cellcast's formats and applications are attracting the strong interest of major broadcasters in China."

Europe : Ukraine

Cellcast Ukraine, a new subsidiary, has partnered with STB, one of Ukraine's leading terrestrial broadcasters, to launch a new interactive quiz show 'King of the Mountain', which is broadcast seven days a week.

Cellcast is providing the technology, graphics, formats and all intellectual property for the show, as well as training production personnel and consulting on the ongoing format development.

The show launched on 19 December, and initial ratings and traffic are very strong. Andriy Tyulenev, Commercial Director of STB, said "Cellcast's interactive TV formats offer the benefit of driving strong ratings and generating significant incremental revenue opportunities for STB."

The Ukraine has an estimated general television audience of about 40 million. Cellcast Ukraine is also currently pursuing commercial discussions with other national and regional broadcasters about launching several new interactive television formats in the Ukrainian market in 2006.

South America : Ecuador

Following its successful entry into the Argentine market, the Company is extending its roll-out in South America. On 20 December it launched Ecuador's first participation-TV show, and initial ratings have been very strong with an average audience share of 19%. 'Insomnia' is being broadcast nationally on Ecuador's number one TV channel TeleAmazonas.

One of South America's smaller nations, Ecuador's two and half million mobile phone subscribers have the highest per capita use of SMS texting in the world.

Having successfully opened up the market, Cellcast is reviewing opportunities for launching several more interactive formats in Ecuador during 2006.

Conclusion

Andrew Wilson, CEO of Cellcast plc, said "Cellcast continues to demonstrate its ability to move quickly and effectively in response to new market opportunities. Content and formats already proven in the highly competitive UK TV market are being syndicated to an increasing number of broadcasters worldwide. In addition to recent progress in Eastern Europe, South America, India and China, significant new initiatives are underway in France, Greece, South-East Asia, Central America and the United States and we retain a confident outlook for 2006."



For further information:

Cellcast plc
Andrew Wilson, CEO Tel: +44 (0) 20 7190 0300
andrew@cellcast.tv www.cellcast.com

Daniel Stewart & Company Plc
Marc Young, Corporate Finance Tel: +44 (0) 20 7776 6550
marc.young@danielstewart.co.uk www.danielstewart.co.uk

Media enquiries:

Abchurch
Henry Harrison-Topham / Tania Wild Tel: +44 (0) 20 7398 7700
henry.ht@abchurch-group.com www.abchurch-group.com


Notes to Editors:

Cellcast plc is a leading international provider of participation television applications and interactive mobile content in the fast-growing multi-platform digital entertainment sector. Headquartered in London, with associated operations in Paris, Beirut, Mumbai, Hong Kong and Buenos Aires, Cellcast's applications and programming are distributed on the Sky Digital platform in the UK and broadcast partners include Canal+ in France; Future TV, LBC, MBC, Dubai Television and Rotana in the Middle East; Telefe in Argentina, and Zee TV and Star TV in India.

Cellcast's revenues streams are independent of both advertising and subscription fees. With a network of revenue sharing agreements with telecommunications carriers and aggregators across five continents, Cellcast receives a share of the call revenue every time a consumer uses a mobile or fixed-line phone to participate in its interactive entertainment, revenue which is retained or shared with its broadcast partners. Cellcast's programme formats and proprietary Interactive Platform (CIP) also facilitate delivery of content to mobile phones, the internet and broadband-delivered IPTV. This enables viewers to continue participating in a programme away from the TV, generating 24/7 revenue opportunities.

Cellcast plc joined the AIM market (AIM) of the London Stock Exchange on 21 September 2005.

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