Catalyst Media Share Discussion Threads

[greasynut] 20/12/2011 09:31

Hooray.
SIS are paying CMX a dividend of £1,437,800 by end Dec.
After paying back the outstanding borrowings, my back of the envelope suggests that CMX could pay a dividend of up to 4.8p.
Of course, prudence requires that they keep some of the cash on board, so maybe 2.5 - 3p is more realistic for the time being.

[deswalker] 28/11/2011 14:58

Was reading this weekend that next year's Olympics, Queen's Jubilee and Euro 2012 football represent a "once in a lifetime" series of events for UK outside broadcasters. I suspect it will be totally manic and that SIS will be covering most of it ...

[deswalker] 25/11/2011 15:52

A bit of interest here over the last couple of days. Hopefully something behind it ...

[deswalker] 19/11/2011 12:01

There was some suggestion that Arena Leisure might be in their sights should the Reuben Brothers pull out (which I'm pretty confident they will). Any such approach would require a big slug of new equity and I wonder if they are considering some form of all-share reverse takeover of ARE to retain the listing thus essentially listing the merged SIS/ARE via ARE and outing the value that way ?

If the price was right then I would be in favour of this and then CMX's newly listed SIS/ARE shares could even be distributed directly to CMX shareholders and CMX closed down completely.

Alternatively, just sticking to the knitting and paying divis has less risk and less reward but even in this situation I see a takeover as unlikely and suspect that SIS will end up listing itself before too long to finally out the value. If only the macro turnoil comes to an end and some normality returns to the equity markets...

I'm watching the ARE discussions with interest.

[grahamburn] 18/11/2011 10:19

Results as expected based on the last statement in October.

Apart from the ongoing issue with non-payment by the organisers of the Commonwealth Games in India which has affected SIS's profit, I see (near the end) that SIS are considering major expansion/investment in the next couple of years. If these proceed, SIS will be suspending the dividend payments to Catalyst until the end of 2013. This would mean that Catalyst won't be able to clear its own outstanding debts and then proceed to pay dividends itself until 2014, and it will have to refinance the debt until then. Fortunately, it's not a large sum, but without income there might be a few issues in this regard. However, SIS should be more profitable by then, so the dividend should be larger.

In effect, any increase in the Catalyst share price will probably be delayed for quite some time and the likelihood of a takeover the company has also reduced.

[deswalker] 19/10/2011 11:10

Horndean,

Like you I was expecting them to meet last year's numbers pre-exceptionals. Against this disappointment we have them above budget for this year presumably based on the entire first half performance.

But like you also say it doesn't matter a huge jot because it is very cheap even allowing for this.

Des

[reyner alert] 19/10/2011 11:09

Thx for the update Deswalker. I think you are right, way over my head. Might be worhtwhile holding these then in the long run.

[deswalker] 19/10/2011 11:05

Reyner - it sounds like you'd be happier chasing more liquid stuff than this. These sort of shares are very tightly held hence the lack of website info and will show their value either through dividends or an agreed takeover from out of the blue.

The online game is a complete distraction as I'm sure you realise. It may even be a necessary evil from a Company Law perspective. The entire reason for holding/buying this share is because one thinks that the CMX share price implies a very low SIS price and that this strategic stake in SIS will be sold in due course with 75% of the CMX shares agreeing to a deal before the rest of us even hear about it. In the meantime and over the medium term it should at least wash its face in dividends.

[horndean eagle] 19/10/2011 11:00

slightly disappointing update imho. Had hoped that profits at SIS would have been up on last year pre exceptionals. In fairness it doesn't matter a huge jot. Shares still very cheap. The next dividend from SIS will likely trigger a re-rating. Company should be in a position to pay off its debt and possibly make a small payment itself. Going forward it should distribute nearly all income.

[theheadchef] 19/10/2011 10:44

RA why did you buy them then and register today to post? THC

[deswalker] 19/10/2011 08:24

A full ten months since the last trading update we have some info this morning and it's pretty good. SIS is trading above budgets and steps continue to recover a £5.9mill provision taken last year due to the well-documented Commonwealth Games situation.

No decision taken on divis but the relocation will incur some exceptionals so we might have to wait a bit longer. That said, I'm hopeful that any successful outcome from the proceedings in India (which have been given a deadline of either mid-November or mid-January depending on which report you read) might see some of those funds used as a divi.

Anyway CMX remains too cheap. Based on earnings alone I'd say a fair share price would be £1 with a further 10p premium for the strategic stake, the narrowness of both SIS and CMX registers and the apparent desire to do a deal at some point. Consequently 110p looks a reasonable target price to me.

IMO, DYOR

[lesb2] 20/8/2011 12:46

what is it though? must be something if its on the website front screen?

[red ninja] 19/8/2011 21:12

The game is very small beer, the SIS holding is the thing...

[lesb2] 19/8/2011 18:49

On the CMX website it describes the company as having a holding in SIS and an online head-to-head gambling game. Anyone any idea about the game?

[red ninja] 31/7/2011 20:14

It would stop worries of contracts ending that appears a major part of the rationale.

Hopefully they can also see a good business in Arena aside from this.

The tote payments to racecourses is secure for another 7(?) years, but if that ends will all Arenas racecourse be able to survive ?

Then hopefully they are not looking to pay too much for Arena taking into account any future uncertainties...

[300sl] 31/7/2011 19:48

wouldn't this move stop worries of contracts ending though?

Think this could be a good thing if it happens.....

[red ninja] 31/7/2011 17:09

Mmm, I don't believe they have big cash reserves so they'd probably be looking to buy Arena with partners.

Also presumably that would be the end of the SIS dividend for some years.

[grahamburn] 31/7/2011 12:34

Sunday Times Business News, page 2.

SIS may consider a £200m bid for Arena Leisure, the racecourse owner, which has been put on the market by its majority shareholder, as and when other possible bidders show their hands.

[300sl] 27/7/2011 08:47

"if",so let's be positive! What is your opinion on whether The Export Credit Guarantee scheme will pay in the future if it's no? thanks gt

[gardentrader] 26/7/2011 22:39

David Holdgate, chief executive of SIS LIVE's parent company SIS, told Broadcast the firm had been "caught in the crossfire" of political in-fighting in India.

"If we do have to write off £15m, that is about one year's after-tax profit for us. It won't kill us, but it is a blow to the business," he said.

"I don't have any faith that we will be paid, but we won't be lessening our efforts to get the money. This is a lesson to those thinking of working in India."

This was in the trade mag Broadcast . 30th June 2011.
Sis were due to be paid this money by end of Dec 2010,representing 40% of the overall fee payable to Sis for covering Commonwealth games in Delhi.
Prasar Bharati (Broadcasting Corporation of India)
have tried to wriggle out of paying Sis as Sis sub-contracted some of the work to Indian based Zoom, saying this was a breach of contract, which Sis deny as sub-contracting is common within the UK and European Broadcast industry.
Prasar Bharati are implying that Sis sub-contracted most of the work, which is not true as they sent many engineers and production teams and equipment to manage many of the events. It looks unlikely that Sis will recover this money.

Unfortunately for India it is unlikely that they will be able to bid to host any large sporting event in the near future.

[300sl] 26/7/2011 09:35

GT, please let us know what you are basing your first comment on? thanks

[gardentrader] 26/7/2011 00:38

It is almost certain that Sis have written off the Commonwealth games loss of about £13 million So little or no divi! Sis Live are currently trying to cut salaries of OB staff to save up to £2 million a year from the division they bought from BBC three years ago. The unions are fighting pay cuts of about 25% per employee so the future does not look good for the Sis Live division making money in the near term after investment of approx £57 million since purchase in 2008. You have been warned!