Joint Venture Announcement

 

TIDMINFS 
 
RNS Number : 6414L 
Infoserve Group PLC 
10 May 2010 
 

                              Infoserve Group plc 
 
 
 
 INFOSERVE AND ILIFFE NEWS & MEDIA ANNOUNCE JOINT VENTURE TO OFFER INTERNET AND 
                            PRINT ADVERTISING PACKAGE 
 
Infoserve Group Plc ("Infoserve"), the online local business search and 
directory specialist, is pleased to announce that it has today entered into a 
joint venture agreement with Iliffe News and Media Limited ("INML"), the media 
arm of Yattendon Investment Trust with interests in local media including 
newspaper publishing and television. 
 
Under the agreement, a joint venture company ("2i Local") will offer SMEs the 
opportunity to purchase a combined internet and print advertising package. This 
will give businesses guaranteed exposure to their target market through online 
local search and local newspaper coverage.  Infoserve and INML will each own 50% 
of the issued share capital of 2i Local. 
 
The establishment of the joint venture follows a successful seven-month trial in 
which 2i Local has been offering the new hybrid advertising solutions to 
businesses in seven separate locations in which INML provides a local newspaper. 
 The results of the pilot have been highly encouraging, leading to both 
increased classified print revenue and greater conversion of web customers 
through the combined sales offer.  The Board of 2i Local is confident therefore 
that there is a strong market opportunity for a one-stop marketing solution for 
SMEs that combines the search capabilities of the web with the visibility of 
local newspaper advertising. 
 
The Directors of Infoserve believe that, although the prospects for the joint 
venture are encouraging, as a result of the initial start-up costs of the joint 
venture, Infoserve's earnings for the year ending 31 March 2011 will be lower 
than previously expected. 
 
Commenting on the joint venture, David Fordham, chief executive, Iliffe News and 
Media, said, 
 
"We have the experience of providing local businesses with tailored and 
innovative print solutions, whereas Infoserve can help them to be found quickly 
and easily when people search for them on the web. It makes sense therefore to 
combine our expertise to give local businesses and tradesmen a cost effective 
'best of both worlds' solution. 
 
"We will now be discussing the concept with newspaper publishers across the UK 
and offering them a turnkey solution to reinvigorate and substantially leverage 
their trades and business advertising sections. This new service will help to 
bring publishers valuable new revenue as the industry emerges from a very 
difficult trading period. The trial has shown conclusively how this joint 
offering can transform the classified sector within local press." 
 
Infoserve's executive chairman, Steve Barnes, added, 
 
"The trial confirmed that there is great demand from businesses for blanket 
coverage across print media as well as online. The reputation of the newspaper 
group in its circulation areas and our knowledge of online marketing is a very 
powerful and credible combination. 
 
"With the favourable customer response we received during the trial, together 
with the growing amount of repeat business, we are extremely confident that we 
have found an advertising model which will prove popular with SMEs who are 
looking for good value and a real return on their investment." 
 
Following the successful trial, 2i Local will now roll out the offering to local 
businesses across a further 17 newspaper regions covered by INML over the next 
few months. 
 
Ends. 
 
For further information, please contact: 
 
Infoserve Group plc          www.infoservegroup.com 
Steve Barnes, Executive Chairman 
[e-mail]                     Tel: [phone] 
 
Jonathan Simpson, Finance Director 
[e-mail]            Tel: [phone] 
 
Nominated Adviser 
WH Ireland Limited 
Robin Gwyn                                                   Tel: [phone] 
 
Iliffe News & Media Limited 
David Fordham, Chief Executive 
[e-mail]                             Tel: [phone] 
 
Yattendon Investment Trust 
Lisa Gordon, Investment Director 
[e-mail]                                              Tel: [phone] 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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