Trading Update

 

TIDMBRST 
 
RNS Number : 8808P 
Burst Media Corporation 
26 July 2010 
 

                                                                    26 July 2010 
 
                            Burst Media Corporation 
 
                                 Trading Update 
 
Burst Media Corporation ("Burst" or "the Company"), the international online 
advertising services company, today announces an update on trading for the six 
months ended 30 June 2010 (the "Period"). The Period includes Giant Realm, 
acquired in October 2009, for the full six months and Burst Media UK (formerly 
OTP Media) since acquisition in April 2010. 
 
Total revenue for the Period is estimated to be approximately US$17.3m, up 
approximately 43% compared to the same Period last year (2009: US$12.1m) and in 
line with expectations. 
 
Revenue from the Company's media businesses, Burst Network, Burst Direct, Giant 
Realm, and Burst Media UK for the Period is expected to be US$16.1m (2009: 
US$10.8m). However, within this aggregate, strong performances from Burst 
Network and Burst Direct offset that of Giant Realm, which was below 
management's expectations. 
 
Following its acquisition and as previously highlighted, the Board sought to 
invest in and upgrade the Giant Realm sales team. Whilst the Board is 
comfortable that appropriate action has been taken in this regard, it has become 
apparent that the new sales team at Giant Realm is taking longer than 
anticipated to generate expected revenue levels. 
 
Whilst the Board expects sales at Giant Realm to improve over the second half of 
the year, as customer relationships deepen and a strong pipeline is converted, 
its underperformance over the Period is likely to result in the Company's 
overall profitability for the full year being materially below market 
expectations. 
 
As of 30 June 2010, the Company had US$2.1m in cash on its balance sheet (2009: 
US$9.4m). During the Period the Company used US$2.3m of its cash resources to 
acquire On The Phone Media Ltd., a UK advertising network, now Burst Media UK. 
Trading since acquisition has been broadly in-line with expectations at the time 
of acquisition. During the Period, cash was also used to fund significant growth 
in the Company's receivable balances over the prior year due to the increase in 
revenues. 
 
In addition, the Company has capitalised US$0.7m in software development costs 
since 30 June 2009. 
 
The Company is scheduled to announce its results for the six months ended 30 
June 2010 on 22 September 2010. 
 
Commenting, David Hanger, Chairman of the Board of Directors, said, "Burst has 
achieved strong growth in the top line over the Period, driven substantially by 
its core Network and Direct businesses. Whilst initial performance at Giant 
Realm has been disappointing, the investments made will, the Board believes, 
ensure its profitable future. The Company is in strong fiscal shape and as the 
results in our core businesses indicate, we believe we are well-positioned 
within the online display advertising sector." 
 
Enquiries: 
 
+----------------------------------------+----------------------+ 
| Burst Media Corporation                | [phone]      | 
| Jarvis Coffin, Chief Executive Officer |                      | 
| Steven Hill, Chief Financial Officer   |                      | 
|                                        |                      | 
+----------------------------------------+----------------------+ 
| Hudson Sandler                         | [phone] | 
| Nick Lyon / Charlie Jack               |                      | 
|                                        |                      | 
+----------------------------------------+----------------------+ 
| Altium                                 | [phone] | 
| Tim Richardson / Paul Chamberlain      |                      | 
|                                        |                      | 
|                                        |                      | 
+----------------------------------------+----------------------+ 
 
Note concerning forward looking statements 
 
This press release contains "forward-looking" statements that involve risks, 
uncertainties and assumptions. If the risks or uncertainties ever materialize or 
the assumptions prove incorrect, our results may differ materially from those 
expressed or implied by such forward-looking statements. All statements other 
than statements of historical fact could be deemed forward-looking, including, 
but not limited to, any projections of financial information; any statements 
about historical results that may suggest trends for our business; any 
statements of the plans, strategies, and objectives of management for future 
operations; any statements of expectation or belief regarding future events, 
technology developments, or enforceability of our intellectual property rights; 
and any statements of assumptions underlying any of the foregoing. 
 
These statements are based on estimates and information available to us at the 
time of this presentation and are not guarantees of future performance. Actual 
results could differ materially from our current expectations as a result of 
many factors, including but not limited to: the unpredictable nature our rapidly 
evolving market and fluctuations in our business; the effects of competition; 
and any adverse changes in our customers' business.  These and other risks and 
uncertainties associated with our business are described in our filings on AIM. 
We assume no obligation and do not intend to update these forward-looking 
statements. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 TSTRAMMTMBBTTTM