Trading Update

 

TIDMBRST 
 
RNS Number : 5562X 
Burst Media Corporation 
08 December 2010 
 

 
                                                                 8 December 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. 
 
The Company noted in its interim results statement, announced on 22 September 
2010, that "visibility remains limited and the achievement of current guidance 
for the full year is dependent on a strong performance in the final quarter". 
 
Whilst the Company will be EBITDA and Net Income positive for each of the last 
four months of 2010, overall sales during the fourth quarter have been slower 
than hoped due to a number of advertising order cancellations. As a result, 
profitability for the full year will be below expectations and the Board now 
expects full year 2010 revenues will be marginally below $40 million (2009: 
$31.4 million) and that the Company will make an adjusted EBITDA* loss of 
approximately $1 million. 
 
Overall the Company will be reporting revenues significantly ahead of 2009. Both 
Burst Network and Burst Direct will achieve year on year revenue growth albeit 
their performance will be below the Board's original expectations. Burst Direct 
is expected to benefit from a significant increase in its participation in 
inventory exchanges and demand side networks. Giant Realm and Burst UK have 
performed below expectations since acquisition, although, following the action 
taken during the year to upgrade its sales function, it is anticipated that 
Giant Realm will generate a positive contribution in December and that Burst UK 
will be breakeven for the year. 
 
Operating expenses have been reduced significantly during the second half of the 
year due to restructuring initiatives undertaken by management and costs are 
also expected to be lower than budgeted for the remainder of the year. 
 
As of 30 November 2010, the Company had $300,000 in cash on its balance sheet. 
Cash flows remain broadly in line with management's expectations and the Company 
expects to end the year with similar cash balances. 
 
Commenting, David Hanger, Chairman, said: 
 
"The Board is disappointed at having to reduce further its full year guidance. 
However, the year on year revenue growth that will be reported, the reduction in 
overheads and the first positive contributions from the Giant Realm business are 
all positives for 2011." 
 
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      |                      | 
|                                        |                      | 
|                                        |                      | 
+----------------------------------------+----------------------+ 
 
*"Adjusted EBITDA" (Adjusted net income before interest income, provision for 
income taxes expense, depreciation and amortization) 
 
 
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 
 
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