MCU 0.00% $1.21 mitchell communication group limited

1h 8.4mill profit and 50pc operating margin

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    With only just over 50% of revenues coming from OnlineMedia MCU is positioned for strong growth for the next six to twelve months.


    Financial results for the half-year ended 31 December 2007, compared to the previous corresponding period (pcp):

    �� Gross billings of $593.5 million, up from $32.0 million the pcp;

    �� Operating revenues of $86.1 million, up $56.8 million or 194% as compared to the pcp;

    �� Operating EBITDA1 of $15.2 million, up $11.8 million or 347% on the pcp;

    �� Gross operating profit margin of 50%, up 118% from 23% in the pcp;

    �� NPAT of $8.4 million, up $6.1 million or 267% on the pcp;

    �� Net debt (including deferred consideration) of $1.4m as at period end, versus $9.8m as at 30 June 2007, a reduction of 86%;

    �� Basic and diluted earnings per share (EPS) of 3.1 cents per share (cps), up 158% or 1.9 cps on the pcp; and

    �� A interim dividend of 1.8 cps, fully franked, up 1.0 cps or 125% as compared to the pcp.

    Out Look For 2008:

    • Currently the group’s year-to-date gross billings have maintained momentum from 1H FY’08 and are up +25% on pcp;

    • The bookings pipeline to June 2008 looks solid;

    • The 2008 AFL football season is shaping up to be record for the group, with sales already equivalent to 85% of those achieved in the 2007 season;

    • Full period contributions from Coleman’s and Haystac also expected to lift 2H FY’08 earnings;

    • Organic revenue opportunities via cross-selling and other means have begun however remain as a significant “treasure chest” to be unlocked;

    • Activities are underway in order to realise synergistic cost savings from recent acquisitions however these are more likely to start flowing late 2H FY’08, then FY’09;

    • Whilst remaining cautiously optimistic, the Group still expects ad spend for CY’08 to rise by 7.4% however this will remain a “watching brief” due to the potential impact on the market associated with uncertainty surrounding the
    US economy.

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