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365 Corp PLC (ECK)

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Thursday 17 February, 2000

365 Corp PLC

3rd Quarter & 9 Mths Results

365 Corporation PLC
17 February 2000

                                       
                     Third Quarter and nine month Results
                         unique users exceed 1 million
                         internet revenues up 57%
                         nine month revenues over £15m
                                       

365  Corporation  plc  ('365' or the 'Company'), the provider  of  destination
content, community and communication services, today announces results for the
third  quarter  and  nine months ended 31 December 1999.   Highlights  of  the
results include:

Third quarter ended 31 December 1999

total  unique users(1) increased to 1,031,282 for December, a 32%  increase
on September (779,591 users);
turnover  of  £5,566,000,  a  13%  increase  over  the  previous  quarter
(£4,926,000);
operating losses (before amortisation of goodwill, provisions for  National
Insurance  contributions on share options and charges in respect of  shares
issued at par) of £2,815,000 compared to £371,000 for the quarter ended  31
December 1998.

internet revenue increased 57% to £460,000 compared to the previous quarter
(£293,000).
audiotext revenue increased 5% to £3,186,000;
total  business customers(4) as at 31 December 1999 increased 14% to 2,484,
business  service  revenue  increased by 21%  to  £1,920,000  and  business
minutes(5) increased by 17% on the previous quarter;

successful flotation on London Stock Exchange;
£1m brand building and content marketing campaign launched in October;
production of the 1999 ITV Rugby World Cup site;
created  and  launched  the  online  entertainment  e-zine  for  Guinness
(www.getG.com);
launch    of   Personals365   (www.personals365.com)   and   'The   Switch'
(www.theswitch.com);
acquisition of e-Merchants Inc. (www.RugbyRugby.com)

Nine months ended 31 December 1999

turnover increased to £15,101,000 compared to £159,000 in the nine  months
to 31 December 1998;
operating losses (before amortisation of goodwill, provisions for  National
Insurance  contributions  on share options,   and  charges  in  respect  of
shares  issued at par) of £3,048,000 compared to £1,171,000  for  the  nine
months ended 31 December 1998.

Recent developments

agreement  to  acquire  Datanet  Marketing Services  on  3  February  2000,
bringing  total  combined users in January to over 1.4 million  on  a  pro-
forma basis;
formation of 365Television and creation of its first digital television
broadcast for the BBC;
sponsorship deal with Fox Sports World in the US;
launch of www.soccer365.com;
WAP content deal with BT Cellnet;
continued growth in users, customers and revenues.


Notes:

1,3,4,5.  See note 2 to interim financial statements.
Dan Thompson, Chief Executive Officer, commented today:

'Breaking the one million unique user barrier so rapidly underlines our belief
that  quality content and services will continue to attract and retain regular
users.   Our  recent  acquisition of Datanet, believed to be  the  largest  UK
internet  content acquisition to date, has increased unique users to over  1.4
million  in  January on a pro-forma basis.  This increase in  users,  combined
with  the  even  faster increase in internet revenues, has contributed  to  an
extremely strong third quarter performance across the group.

Since  365's  flotation we have moved aggressively to  expand  the  range  and
distribution of our content and services with the acquisitions of Datanet  and
e-Merchants  Inc.  The successful launch of our television arm, together  with
today's  announcement of our first WAP product, demonstrates  our  ability  to
deliver our content over multiple channels and to maximize the revenue streams
from our proprietorial content and brands'


For further enquiries, please contact

365 Corporation plc                         Tel: 0207 505 7800
Dan Thompson, Chief Executive Officer       
Martin Turner, Finance Director             
www.365corp.com                             
                                            
Financial Dynamics                          Tel: 0207 831 3113
Giles Sanderson                             
Fiona Meiklejohn                            


Financial and Operating Data Highlights


                      Quarter     Quarter     9 months     9 months
                      ended 31    ended 31     ended 31       ended
                      December    December     December  31 December
                     1999        1998         1999         1998               
                     £'000       £'000        £'000        £'000
                                                                        
Turnover            5,566          75       15,101          159
                                                                              
     
Operating expenses (8,381)       (446)     (18,149)      (1,330)
before amortisation 
of goodwill,
provision for NIC on 
share options
and shares issued at par
                                                                              
     
Operating loss     (2,815)       (371)      (3,048)      (1,171)
before amortisation of 
goodwill, provision for 
NIC on share options 
and shares issued at
par
 
Operating loss     (8,546)       (371)     (10,163)      (1,171)


Operating data from April 1999 to January 2000

                     April   May      June     July     Aug      Sept 
Consumer Division   352,612  385,935  401,146  526,892  658,996  779,591
unique users (1)

Business Division   1,410    1,492    1,613    1,740   1,838     2,170
customers (4)

                     Oct       Nov      Dec         Jan
Consumer Division    934,270   944,267  1,031,282   1,093,995*
unique users (1)

Business Division    2,366     2,475    2,484       2,592
customers (4)


* excludes Datanet unique users which were approximately 327,000

Notes:
1,4  See note 2 to quarterly financial statements
Chief Executive Officer's Review

Total unique users increased to 1,031,282 in December 1999, a 32% increase  on
the  September total of 779,591 users, and a 215% increase on the  March  1999
total  of 326,954 users.  Our acquisition of Datanet on 3 February 2000 brings
a  further  327,000  users to 365 (based on January 2000 operating  data)  and
increases our combined January total to over 1.4 million unique users on a
pro-forma  basis.  In addition to users, the Datanet acquisition  has  brought 
us complementary content and services (particularly in the area of
statistically-based sports content), new distribution channels, including a WAP
content deal with BT Cellnet, and additional management resources.


Internet Services

Growth  in  users and customers continued during the third quarter and  a  £1m
brand   building  and  content  marketing  campaign,  initiated  in   October,
successfully  contributed  to  this  increase,  particularly  with  regard  to
football and music

Our  commitment  to producing quality content also resulted in new  commercial
opportunities during the quarter.  We developed, maintained and  hosted  ITV's
1999  Rugby  World  Cup web site, were also selected to  produce  all  of  the
content  for'G',  a new internet e-zine, on behalf of Guinness  (www.getG.com)
and  have  created and launched the official British Record Industry  ('BRIT')
Awards web site (www.brits.co.uk) in preparation for the 2000 BRIT Awards.

In October, we successfully launched two new internet lifestyle products - our
first  online  companionship product, Personals365 (www.personals365.com)  and
'The  Switch'  (www.theswitch.co.uk),  a  cross-platform  convergence  product
(telephone  and  web site) offering companionship services on  a  regional  or
national  basis.   Both products have quickly attracted a  large  and  growing
unique user base and related revenue streams.

Internet revenue increased to £460,000, a 57% increase on the previous quarter
(£293,000)  and  over  six  times the revenue in  the  same  quarter  in  1998
(£75,000).   This  revenue includes a contribution  from  our   new   Net@Work
business internet product.

e-Merchants Inc.

In December we established a presence in the North American market through the
acquisition  of  US-based  e-Merchants  Inc.,  the  owners  and  operators  of
RugbyRugby.com.  Through RugbyRugby.com we now provide a range of services for
players,  fans, and administrators, including a 24-hour news service,  an  on-
line  match  scheduling  service, club listings, fixtures,  results,  a  rugby
merchandise store and a comprehensive rugby club search engine.

RugbyRugby.com is the official Rugby web site of Fox Sports World ('Fox'), the
US  Sports television channel.  Fox is the primary broadcaster of rugby in the
United  States  and its broadcasts can be seen in up to 65 million  US  homes.
RugbyRugby.com is exclusively promoted during every Fox rugby broadcast, which
will  include coverage of this year's Six Nations, Tri-Nations, European  Cup,
Super  12  and Currie Cup competitions.  RugbyRugby.com also has an  exclusive
arrangement  with  the United States men's national rugby  team,  the  Eagles.
This  relationship  with Fox has been expanded to include the  sponsorship  of
their soccer coverage in the United States.

The  total consideration for RugbyRugby.com was US$250,000 in cash and 351,562
shares, with contingent consideration of up to 195,313 shares being payable if
e-Merchants  achieves certain revenue targets during the year  to  31  January
2001.   Based on our share price on 31 December 1999 of 250p, this equates  to
an effective initial consideration of approximately $1.65 million.


Audiotext Services

Effective  1  December, we entered into our first major  contract  to  provide
network  and audiotext termination services to a third party, LSH,  a  leading
provider  of  companionship services in the UK.  The provision of such  bureau
services,  and  the  associated increase in our overall call  termination  and
handling  capacity, will put us in a strong position to support major national
audiotext promotions, such as TV voting and competitions.

During  the quarter, audiotext revenues increased by 5% to £3,186,000  (second
quarter - £3,040,000).


Business Services

The  launches  of  business  mobile phone services  and  internet  access  via
Net@Work,  have  exceeded our expectations during the  third  quarter  and  we
intend  to  expand  our infrastructure and distribution capabilities  to  meet
customer  demand.  Both products form part of our core strategy to  provide  a
'one-stop-shop', or single point of contact for all of our business customers'
telecommunications and internet requirements.  We believe that  expanding  our
range  of  business services, with particular emphasis on the  internet,  will
maximise  revenues  from  our  customer base,  and  further  enhance  customer
loyalty.

Business  service turnover increased to £1,920,000, compared to £1,593,000  in
the  previous quarter, an increase of 21%.    As at 31 December 1999,  we  had
2,484  business  customers, an increase of 14% on  30  September  1999  (2,170
customers) and 94% on 31 March 1999 (1,280 customers).


Recent and Forthcoming Developments

365Television

In  January,  we announced the formation of 365Television.  In line  with  our
multi-channel  strategy,  365Television will make programmes  and  interactive
content  for  digital  television, and further looks to exploit  our  existing
brands and content over the broadband and television platforms.  365Television
will  also  be creating audiovisual content to enhance our services  on  other
platforms, such as the internet and mobile phones.

To  spearhead 365Television, we hired a team of three former BBC producers all
of   whom  have  been  at  the  forefront  of  simultaneous  TV  and  internet
broadcasting, developments which will accelerate with the advent of  broadband
delivery.  Our first 365Television production was a documentary on boxer  Mike
Tyson's  controversial visit to Britain ('Mike Tyson  in  the  UK'),  and  was
broadcast  on the BBC during the week of 31 January 2000.  We also  use  clips
from this programme to augment our internet offerings.

Datanet Acquisition

On  3  February we announced that we had entered into an agreement to  acquire
the  entire  issued  share capital of Datanet Holdings  Limited,  the  holding
company of Datanet Marketing Services Limited ('Datanet').

Datanet,  which was founded in 1995, is one of the most successful  and  well-
established  publishers  of  high  quality digital  sports  and  entertainment
content  on  the  internet.  Its extensive content portfolio  includes  Planet
Rugby  (www.planet-rugby.com), one of the foremost rugby sites on the web  and
other high quality sports products in Cricket (www.cricketline.com), Formula 1
(www.planet-f1.com)   and   Horse   Racing  (www.racetips.com)   with   unique
statistical  and  editorial content. Datanet's entertainment division  runs  a
network  of  live  multi-player trivia games under  the  Planet  Trivia  brand
(www.planet-trivia.com) which enables thousands of users  to  compete  against
each other in real time in a global trivia challenge.

Datanet  has  content distribution deals with a number of the leading  portals
and  ISPs  (e.g.  Yahoo, Freeserve and Lycos) and is currently  producing  the
software  and  technology  to deliver its content across  multiple  platforms.
Datanet  currently  provides cricket and rugby content to WAP  enabled  mobile
phones  under  a deal with BT Cellnet.  We plan to increase our range  of  WAP
content offerings to be a leader in the provision of content to mobile phones.

The  total consideration for Datanet was £2,208,000 in cash and 12.42  million
shares. Based on the closing mid-market price of £2.325 as at 2 February 2000,
this equates to an effective consideration of £31,084,500.  The acquisition is
conditional upon receipt of certain clearances from the Inland Revenue to  the
current Datanet shareholders, which are expected to be received shortly.

Other

Following  on from our successful partnership with ITV during the  1999  Rugby
World  Cup,  we  have developed and are hosting the ITV Six Nations  web  site
(www.itv-rugby.co.uk).  The Six Nations championship started on 5 February and
finishes on 2 April.

The  business  services  division has expanded its  successful  Joint  Venture
program to include two more partners; Advanced Network Services Limited (based
in  West  London)  and  MTV Telecom plc, a national distributor  of  telephone
systems and related hardware (based in Egham, Surrey).


Current Trading

User  growth  has  continued  to  rise in the fourth  quarter,  increasing  to
1,093,955  unique users in January.  We believe that this trend will  continue
during the fourth quarter and expect to significantly add to our regular rugby
users during the Six Nations championship.  In particular, the acquisition  of
Datanet,  with over 300,000 unique users in January 2000 and the Planet  Rugby
web  site, will result in a step-change increase in users.  Internet  revenues
continue to grow strongly.

We  have also seen a strong growth in audiotext revenues during January as our
new  media deals and product launches in the previous quarter have started  to
drive revenues.

Finally,  business  services  revenue has  recovered  strongly  following  the
traditionally  quiet Christmas period and the effect of Y2K concerns,  and  we
are looking forward to solid fourth quarter increases in both customer numbers
and revenues per customer as we expand our product portfolio.

We  continue  to  seek  new acquisitions and business  opportunities  and  are
confident about the future trading prospects of 365.


Financial Review

The  Company's first accounting period ran from incorporation on 12  September
1997   to   31   July   1998.    Following   the   acquisition   of   Symphony
Telecommunications plc on 2 February 1999, the Company adopted 31 March as its
financial  year end and its second financial period covered the  eight  months
from  1 August 1998 to 31 March 1999.  The results of 365 set out below  fully
consolidate the results of operations of Symphony Telecommunications plc  from
the date of its acquisition.

Results of Operations

Turnover  for  the  third  quarter  ended 31  December  1999  was  £5,566,000,
representing  a  13% increase from £4,926,000 in the second quarter  ended  30
September 1999.

365  currently  derives  internet turnover from advertising,  sponsorship,  e-
commerce, contract publishing and business internet services.  These  revenues
increased  by  57%  to  £460,000 during the third quarter  (second  quarter-
£293,000),  reflecting  continued increases  in  advertising  and  sponsorship
during  the period.  Internet turnover for the comparable period in  1998  was
£75,000.

Audiotext  turnover  increased during the quarter by 5% to £3,186,000  (second
quarter - £3,040,000).  Audiotext was not provided by 365 in 1998.

Business   services  turnover  increased  to  £1,920,000  (second  quarter   -
£1,593,000) in the third quarter, an increase of 21%.  As at 31 December 1999,
365 had 2,484 business customers, an increase of 14% during the third quarter.
December  revenues  were depressed by the usual seasonal factors,  which  this
year  included the Millennium.  Business services were not provided by 365  in
1998.

Cost  of  sales  increased by 18% in the third quarter to  £3,047,000  (second
quarter - £2,591,000) and gross margin reduced to 45% (second quarter -  47%).
The decline in gross margin during the quarter was primarily due the provision
of  lower  margin audiotext services to LSH in December and costs involved  in
developing new media outlets.

Administrative  expenses (before amortisation of goodwill, National  Insurance
provisions  in  relation to staff share options  and shares  issued  at  under
value)  rose  to  £5,334,000  during  the  third  quarter  (second  quarter  -
£2,845,000).   The  major  elements of this increase  were  a  £1m  365  brand
building  and  content  marketing  campaign initiated  in  October,  increased
investment  in  new content and services, expansion of our infrastructure  and
technology    (including   Y2K   preparedness),   significant    non-recurring
professional  expenses  (particularly in  preparing  365  for  flotation)  and
necessary increases in personnel to meet the demands of operating as a  public
company.

Goodwill  amortisation increased to £659,000 during the third quarter compared
to  £622,000  in the second quarter.  Charges in relation to the provision  of
National  Insurance  contributions  on employee  share  options  increased  to
£2,811,000  compared to £255,000 in the previous quarter.  This  increase  was
expected and is largely due to an increase in 365's share price to 250p as  at
31 December 1999.

On  10  November 1999, the Company allotted 400,000 shares of 1p each  to  two
Directors at nominal value (prior to the 4 for 1 share split).  This  resulted
in a National Insurance liability of £184,000 (paid during the third quarter),
and a non-cash charge of £2,077,000 in the profit and loss account.

Interest  income  increased to £240,000 during the quarter (second  quarter  -
£69,000) and arose from the investment of net proceeds from 365's flotation in
short-term interest bearing deposit accounts.

Liquidity and Capital Resources

Prior  to  flotation  on  2  December 1999, 365 had  financed  its  operations
primarily through the private placement of ordinary shares and during the nine
months  ended 31 December 1999 the Company raised £2,603,000 (net of expenses)
by these means.

365's  initial  public  offering  raised net proceeds  of  £58,269,000,  after
deduction  of  flotation expenses totaling £5,326,000 which have been  charged
against the Company's share premium account.  The total amount raised includes
the exercise of the over-allotment option by the Company's Sponsor, Cazenove &
Co.,  under  which it purchased an additional 5,184,375 shares on 15  December
1999 to raise a further £7.9m for the Company, net of expenses.

During  the  three  months  ended 31 December  1999,  net  cash  outflow  from
operating  activities  totalled £1,874,000, compared  with  £272,000  for  the
previous quarter.  At 31 December 1999, the Company had £1,947,000 of cash  at
bank and in hand, compared to £6,729,000 at the end of the second quarter  and
£5,316,000  at  31  March  1999.  Funds on  short  term  deposit  amounted  to
£61,000,000 at 31 December 1999.


Consolidated profit and loss account
for the quarter and nine months ended 31 December 1999

                           Quarter     Quarter    9 months    9 months
                           ended 31    ended 31    ended 31    ended 31
                           December    December    December    December
                           1999        1998        1999        1998
                           unaudited   unaudited   unaudited   unaudited
                    Note   £'000       £'000       £'000       £'000
                                                                              
              
Turnover           3         5,566          75      15,101         159
Cost of sales               (3,047)         (2)     (8,210)         (5)
Gross profit                 2,519          73       6,891         154
Administrative expenses      5,334         444       9,939       1,325
before the following:
Amortisation of goodwill       659           -       1,788           -
Provision for NIC on share   2,811           -       3,066           -
options
Shares issued at par         2,261           -       2,261           -
Total administrative        11,065         444      17,054       1,325
expenses
                                                                              

Operating loss before  3   (2,815)       (371)     (3,048)     (1,171)
goodwill amortisation,
provision for NIC on share
options and shares issued
at under value
Operating loss             (8,546)       (371)    (10,163)     (1,171)
                                                                              

Net interest receivable     240           4         372          25
                                                                              

Loss on ordinary           (8,306)       (367)     (9,791)     (1,146)
activities before taxation
Taxation                        -         (1)           -         (5)
Loss on ordinary           (8,306)       (368)     (9,791)     (1,151)
activities after taxation
Minority interests             23           -          82           -
Retained loss for the      (8,283)       (368)     (9,709)     (1,151)
period
                                                                              

Loss per ordinary share     4                                                 

Basic   loss   per   share      1.6p        0.8p        1.8p        2.4p
before   amortisation   of
goodwill,  provision   for
NIC  on share options  and
shares issued at par
Diluted  loss  per   share      1.5p        0.7p        1.7p        2.4p
before   amortisation   of
goodwill,  provision   for
NIC  on share options  and
shares issued at par
Basic loss per share             5.3p        0.8p        6.8p        2.4p
Diluted loss per share           5.0p        0.7p        6.2p        2.4p

Statement of total recognised gains and losses
for the quarter and nine months ended 31 December 1999


                             Quarter ended    Quarter    9 months    9 months
                               31 December   ended 31    ended 31    ended 31
                                      1999   December    December    December
                                 unaudited       1998        1999        1998
                                     £'000  unaudited   unaudited   unaudited
                                                £'000       £'000       £'000
Retained loss for the period       (8,283)      (368)     (9,709)     (1,151)
Exchange adjustments                    15          -          19           -
Total recognised losses for                                                  
the period                         (8,268)      (368)     (9,690)     (1,151)

Consolidated balance sheet
As at 31 December 1999

                                             31         31    31 March
                                       December   December        1999
                                           1999       1998     audited
                                       unaudited  unaudited       £'000
                                          £'000      £'000
                                  Note
                                                                      
Fixed assets                                                          
Intangible fixed assets                  10,101          -       9,798
Tangible fixed assets                     1,122         89         728
                                         11,223         89      10,526
                                                                      
Current assets                                                        
Stock - goods for resale                     43          -          16
Debtors                                   5,437         99       2,482
Investments - short term                 61,000          -           -
deposits
Cash at bank and in hand                  1,947        171       5,316
                                         68,427        270       7,814
                                                                      
Creditors: amounts falling due          (6,986)      (170)     (3,750)
within one year
Net current assets                       61,441        100       4,064
                                                                      
Total assets less current                72,664        189      14,590
liabilities
                                                                      
Creditors: amounts falling due             (11)          -        (25)
after more than one year
Provisions for liabilities and     9    (3,066)          -           -
charges
Net assets                               69,587        189      14,565
                                                                      
                                                                      
Capital and reserves               5                                  
Called up share capital                     458        123         319
Shares to be issued                       1,001                       
Share premium account                    72,262      1,729      11,517
Other reserves                            5,770          -       4,937
Profit and loss account                 (9,757)    (1,663)     (2,144)
Total equity shareholders' funds   6     69,734        189      14,629
                                                                      
Minority interests                        (147)          -        (64)
                                                                      
Capital employed                         69,587        189      14,565

Consolidated cash flow statement
for the quarter and nine months ended 31 December 1999


                                Quarter    Quarter    9 months    9 months
                                ended 31   ended 31    ended 31    ended 31
                                December   December    December    December
                                1999       1998        1999        1998
                                unaudited  unaudited   unaudited   unaudited
                             Note £'000      £'000       £'000       £'000
                         
                                                                    
Net cash outflow from     7      (1,870)      (307)     (2,782)     (1,171)
operating activities
                                                                              

Returns on investment and                                                     
servicing of finance
Net interest                       240          4         372          24
                                                                              

Capital expenditure and                                                       
financial investment
Purchase of tangible fixed        (271)       (12)       (676)        (50)
assets
                                                                              

Acquisitions                                                                  
Net cash acquired with             -          -          12            -
subsidiaries
Purchase of subsidiaries   8      (155)       -        (172)           -
                                  (155)       -        (160)           -
Cash outflow before use of        (2,056)    (315)     (3,246)     (1,197)
liquid resources and
financing
                                                                              

Management of liquid                                                          
resources
Increase in short-term         (61,000)          -    (61,000)           -
deposits
                                                                              
Financing                                                                     
Issue of shares                 63,600           -     66,203,         559
Expenses on issue of shares     (5,326)          -     (5,326)           -
                                                                              

(Decrease)/increase in cash     (4,782)      (315)     (3,369)       (638)
in the period

Notes to the quarterly financial statements

1.   Basis of preparation

The quarterly financial statements for the third quarter and nine months ended
31  December 1999 have been prepared using accounting policies consistent with
those  set  out in the Company's consolidated 1999 statutory accounts.   These
statements do not constitute statutory accounts within the meaning of  section
240 of the Companies Act 1985 and are unaudited.

Financial  information for the three months and nine months ended 31  December
1998  has  been extracted from the accounting records of the Company,  and  is
also unaudited.  It does not consolidate any results of operations of Symphony
Telecom, which was acquired on 2 February 1999.

The  balances  as  at 31 March 1999 have been extracted from the  accountants'
report included in the prospectus. The accountants' report was extracted  from
the  statutory accounts which have been filed with the Registrar of Companies.
The auditor's report on those accounts was unqualified and did not contain any
statement under section 237 of the Companies Act 1985.

The  interim financial statements for the third quarter ended 31 December 1999
were  approved  by  the  Board  on 16 February 2000  and  will  be  posted  to
shareholders on 21 February 2000.

2.   Operating data for April 1999 to January 2000

                           April        May      June         July         Aug
Consumer Division                                                             
Unique users(1)                                                               
Sport                                                                         
   Football              173,894    191,393   186,537      266,472     366,401
   Cricket                78,803     92,179   101,688      143,835     145,745
   Rugby                                                                 6,759
   Other                                                                      
Total Sport              252,697    283,572   288,225      410,307     518,905
Entertainment             33,189     33,485    34,919       34,110      46,894
Lifestyle                 66,726     68,878    78,002       82,475      93,197
Total unique users       352,612    385,935   401,146      526,892     658,996
User sessions(2)                                                              
Sport                                                                         
   Football            1,874,676  2,102,564 2,182,961    2,681,722   3,196,288
   Cricket             2,364,090  2,857,549 3,050,625    4,458,870   4,518,080
   Rugby                                                                16,796
   Other                                                                      
Total Sport            4,238,766  4,960,113 5,233,586    7,140,592   7,731,164
Entertainment            133,753    150,628   147,952      156,347     187,589
Lifestyle                481,852    484,024   526,092      518,980     577,147
Total user sessions    4,854,371  5,594,765 5,907,630    7,815,919   8,495,900
Audiotext minutes(3)   5,829,453  5,339,713 6,097,658    6,152,836   6,136,871
                                                                              
Business Division                                                             
Business customers(4)      1,410      1,492     1,613        1,740       1,838
Business minutes(5)    5,495,010  6,434,351 6,948,406    8,118,687   7,910,244



                            Sept        Oct        Nov         Dec         Jan
Consumer Division                                                             
Unique users(1)                                                               
Sport                                                                         
   Football              376,161    394,449    439,945     478,057     486,065
   Cricket               148,354    146,807    148,128     156,595     167,334
   Rugby                  38,719    128,811     66,107      25,508      62,085
   Other                   2,540        833        413         248      15,478
Total Sport              565,774    670,900    654,593     660,408     730,962
Entertainment            117,837    143,402    151,201     224,962     204,935
Lifestyle                 95,980    119,968    138,473     145,912     158,058
Total unique users       779,591    934,270    944,267   1,031,282   1,093,955
User sessions(2)                                                              
Sport                                                                         
   Football            3,275,769  3,482,203  3,633,080   3,734,444   3,970,551
   Cricket             4,598,974  4,551,017  4,443,840   4,697,850   5,020,020
   Rugby                  69,603    402,091    279,699     107,715     236,053
   Other                   3,429      1,029        488         269      18,795
Total Sport            7,947,775  8,436,340  8,357,107   8,540,278   9,245,419
Entertainment            248,240    457,136    462,265     558,999     561,572
Lifestyle                571,906    662,849    770,147     792,391     809,857
Total user sessions    8,767,921  9,556,325  9,589,519   9,891,668  10,616,848
Audiotext minutes(3)   6,072,885  6,758,761  5,874,780   6,063,240   6,397,747
                                                                              
Business Division                                                             
Business customers(4)      2,170      2,366      2,475       2,484       2,592
Business minutes(5)   10,047,227 10,348,644 10,969,562   9,243,583  10,630,120



Notes:

1.   365 defines the number of unique users in a month as the number of people
who visit one of 365's web sites (including those web sites created and   
hosted by 365 for third parties) during a month, telephone one of 365's
audiotext telephone services during a month or are registered to receive an 
e-mail product at a selected mid-month date.  If a person uses the same 365
service more than once in a month they are counted only once as a unique user.
 If, however, that person uses more than one 365 service during that month,
they are counted as a unique user once for each service used.

2.   365 defines the number of user sessions in a month as the number of times
that each 365 service is used.  If a user leaves a web site and returns more
than 30 minutes later the return visit is counted as a separate user session.
E-mail user sessions represent the number of registered subscribers at the
date selected to determine the number of unique e-mail users multiplied by the
number of issues in that month of the e-mail service they are registered to
receive.  Each incoming call to 365's audiotext telephone services represents
a user session.

3.   365 defines the number of audiotext minutes in a month as the number of
minutes  recorded by 365 and its carriers in respect of  calls  to  365's
audiotext services in that month.
  
4.    365 defines the number of business customers at each month end as  the
total number of customers at that month end who have been billed for that
month.

5.    365 defines the number of business minutes in a month as the number of
minutes tracked by the carriers' systems which are billed to the Business
Division's customers in that month.

3.   Segmental analysis

Turnover and loss or profit before amortisation of goodwill provision for  NIC
on share options and charges in respect of shares issued at par are classified
below  by geographical area by origin, which is not materially different  from
geographical area by destination, and by class of business.

                                              Turnover
                      Quarter ended 31 December   9 months ended 31 December
                              1999         1998          1999            1998
                                                                             
Geographical analysis                                                        
United Kingdom               5,460           75        14,736             159
France                          32            -            49               -
Germany                          1            -            93               -
Chile                           66            -           216               -
South Africa                     -            -             -               -
USA                              7            -             7               -
                             5,566           75        15,101             159
                                                                             
Business Analysis                                                            
Audiotext                    3,186            -         9,492               -
Business services            1,920            -         4,712               -
Internet                       460           75           897             159
Total                        5,566           75        15,101             159

                         (Loss)/profit before goodwill amortisation, NIC on
                                           share options
                                      and shares issued at par
                          Quarter ended 31       9 months ended 31 December
                              December
                              1999        1998           1999            1998
                                                                             
Geographical analysis      (2,425)       (371)        (2,456)         (1,171)
United Kingdom               (241)           -          (365)               -
France                        (19)           -           (16)               -
Germany                          9           -              9               -
Chile                        (146)           -          (227)               -
South Africa                     7           -              7               -
USA                        (2,815)       (371)        (3,048)         (1,171)
                                                                             
                                                                             
Business Analysis              733           -          2,678               -
Audiotext                    (358)           -          (651)               -
Business services          (3,190)       (371)        (5,075)         (1,171)
Internet                   (2,815)       (371)        (3,048)         (1,171)
Total                                                            


4.   Loss per ordinary share of 0.25p each

                      Quarter ended  Quarter    9 months    9 months
                      31 December    ended 31   ended 31    ended 31
                      December       December    December   December
                      1999           1998            1999       1998
                      £'000          £'000       £'000       £'000
                                                                              
     
Loss for the period  
before the
following:             (2,552)         (368)       (2,594)     (1,151)
Goodwill              
amortisation             (659)            -        (1,788)           -
Provision for NIC 
on share options       (2,811)            -        (3,066)           -
Shares issued at par   (2,261)            -        (2,261)           -
Loss for the period    (8,283)        (368)        (9,709)     (1,151)
                                                                              
     
Weighted average number of shares                                             
in the period:
Basic                      155,109,419   49,017,648  142,707,734  47,272,193
Diluted                    164,614,390   50,598,980  157,011,614  48,853,603
                                                                              
                                                                    
Basic loss per share before        1.6p        0.8p   1.8p        2.4p
amortisation of goodwill,
provision for NIC on share options
and shares issued at par
Goodwill amortisation              0.4p         -     1.3p           -
Provision for NIC on share options 1.8p         -     2.1p           -
Shares issued at par               1.5p         -     1.6p           -
Basic loss per share               5.3p         0.8p       6.8p        2.4p
                                                                              
     
Diluted loss per share before      1.5p         0.7p       1.7p        2.4p
amortisation of goodwill,
provision for NIC on share options
and shares issued at par
Goodwill amortisation              0.4p            -       1.1p           -
Provision for NIC on share options 1.7p            -       2.0p           -
Shares issued at par               1.4p            -       1.4p           -
Diluted loss per share             5.0p         0.7p       6.2p        2.4p


The weighted average number of shares have been restated to reflect the 
4-for-1 share split in November 1999.


5.   Share capital and reserves
                     Ordinary   Shares to     Share     Other    Profit
                     share      be issued     premium  reserves  and loss
                     capital                  account            account
                     £'000      £'000         £'000    £'000     £'000
                                                                              
At 1 October 1999        355          -       14,091     5,770   (3,566)
Retained loss for         -           -            -         -   (8,283)
the period
Exchange adjustments      -           -           -          -       15
Shares issued in respect
of various fund raising  103          -       58,171         -        -
exercises, net of costs
Shares to be issued       -       1,001          -          -         -
Shares issued at par      -           -          -          -     2,077
At 31 December 1999     458       1,001      72,262     5,770    (9,757)

On  2 December 1999 the company was floated on the London Stock Exchange.  The
company issued 39,746,875 new ordinary shares of 0.25p each at an issue  price
of  160p   which, after deduction of flotation expenses of £5,326,000,  raised
net proceeds of £58,269,000.  This includes the exercise of the over-allotment
of 5,184,375 shares on 15 December 1999.

On 10 November 1999 the Company allotted 400,000 ordinary shares of 1p each to
two Directors at nominal value. In accordance with UITF17 the difference
between the market value of the shares and the consideration paid has been
charged directly to the profit and loss account.

6.   Reconciliation of movements in shareholders' funds

                                 Quarter     Quarter   9 months      9 months
                                ended 31    ended 31   ended 31      ended 31
                                December    December   December      December
                                    1999        1998       1999          1998
                                   £'000       £'000      £'000         £'000
Opening shareholders' funds       16,650         557     14,629           782
Loss for the period              (8,283)       (368)    (9,709)       (1,152)
Proceeds from the issue of        58,274           -     61,717           559
shares
Charge in respect of shares        2,077           -      2,077             -
issued at par
Shares to be issued                1,001           -       1001             -
Exchange adjustments offset           15           -         19             -
in reserves
Closing shareholders' funds       69,734         189     69,734           189

7.   Net cash outflow from operating activities

                               Quarter ended  Quarter    9 months    9 months
                               31 December   ended 31    ended 31    ended 31
                               1999          December    December    December
                               £'000             1998        1999        1998
                                                £'000       £'000       £'000
Operating loss before          (8,546)          (372)    (10,163)     (1,172)
interest and minorities
Depreciation                   110                 10         299          25
Amortisation of goodwill       659                  -       1,788           -
(Increase) in stock            (10)                 -        (27)           -
(Increase)/decrease in         (2,016)              6     (2,852)        (14)
debtors
Increase/(decrease) in         5,856               49       6,096        (10)
creditors/provisions
Charge in respect of shares    2,077                -       2,077           -
issued at par
                               (1,870)          (307)     (2,782)     (1,171)


8.   Acquisitions

On  24  December  1999, 365 acquired 100% of the issued share  capital  of  e-
Merchants  Incorporated for an initial consideration of £1,034,000, consisting
of  a  consideration of £879,000 which was financed by the  issue  of  351,562
ordinary shares in the Company on 31 January 2000 and a cash consideration  of
£140,000, and acquisition costs of £15,000. A further   consideration of up to
195,313  shares is contingent on e-Merchants meeting certain revenue  targets,
the fair value of which is currently assessed as £122,000.

                                                     £'000
Assets acquired                                          3
Goodwill                                             1,153
Cost of acquisition                                  1,156
                                                          
Comprising:                                               
     Cash                                              140
     Consideration satisfied by shares                 879
issued
     Contingent consideration to be                    122
satisfied by issue of shares
     Professional fees incurred on                      15
acquisition
                                                     1,156

Goodwill arising on the acquisition of e-Merchants is being amortised on a
straight line basis over the estimated economic useful life of 18 months.

9.   Future liabilities

On  exercise of share options issued after 6 April 1999, the Company  will  be
required  to  pay  National Insurance on the difference between  the  exercise
price  and  market  value  of  the shares issued.   The  Company  will  become
unconditionally  liable to pay the National Insurance  upon  exercise  of  the
options,  which  are exercisable over a period of up to seven years  from  the
date  of  the  grant.  The Company therefore makes a provision  following  the
grant of options, as opposed to on vesting or on exercise.

The  amount  of  the National Insurance payable will depend on the  number  of
employees  who remain with the Company and exercise their options, the  market
price  of  the  Company's  ordinary shares at the time  of  exercise  and  the
prevailing  National Insurance rates at the time. The accounts for the  fourth
quarter  will include an adjustment arising from the movement in the Company's
share price between 31 December 1999 and 31 March 2000.