Trading Update

Thomson Intermedia PLC
25 January 2007



Thomson Intermedia plc


Trading update


Thomson Intermedia plc (AIM: THN), the media insight company is providing a
trading update, following the year end change. Thomson Intermedia, expects to
announce its second set of interim results for the 12 months ending 31 January
2007 in April.


The core recurring revenues continue to show healthy growth in line with the
historic profile of the Group.  Alongside the core recurring revenues, Thomson
Intermedia also has a one-off development revenue stream which because of the
unpredictability of project timings can have a material impact on Group profits.


Thomson Intermedia expects Group revenue to be in the region of £20.6m and EBIT
of £3.3m for the 15 months to 30 April 2007.


Financial Update


The enlarged group now has two distinct revenue streams; recurring and
consultancy revenue, and development revenue.


Recurring and consultancy revenue


This consists primarily of recurring annual services for which the Group
maintains a high renewal rate and good forward visibility as well as marketing
consultancy revenue.


Recognised revenue for this area is expected to be £19.6m for the 15 month
period to April 2007 compared to £8.9m for the year to 31 January 2006.  On a
proforma basis, assuming billets' figures were included for all 12 months; this
operation's revenues for the year to 31 January 2006 would have been £13.6m.


Gross profit is expected to increase to £10.4m for the 15 month period to April
2007, against £4.9m for the year to 31 January 2006 (£6.7m on a proforma basis).
This represents annualised organic growth of 24% and a four percentage point
improvement in the gross margin to 53%.


With overheads predominately flat, the resulting underlying operating profit
from recurring and consultancy revenue is expected to increase to £3.5m in the
15 month period; up from £1.4m on a proforma basis for the year to 31 January
2006. On a like-for-like basis comparing recurring and consultancy revenue as
they were 12 months ago, and adjusted for billetts to 12 months, this core
business stream has seen growth in underlying profit of 96%.


Development Revenue


This is predominately one-off fees, the majority of which directly or indirectly
lead to longer term core revenue streams going forward.


To 31 January 2006, the Group recognised £2.2m of development income which
includes £1.1m of retrospective vouching; £0.4m of German licence fees and fees
for the development of publisher platform.


Currently the Group has a significant pipeline of new development projects, but
the timing of closure of these projects and the delivery schedules are
unpredictable.  The Group, however, does expect to close a high proportion of
these projects during the current calendar year.  Development revenue for the 15
months to April 07 is currently expected to be the order of £1m. A negative
contribution of £0.2m is expected after accounting for R&D costs and an
apportionment of overheads.  This is £1.5m less than the proforma 12 months to
31 January 2006.


Outlook


Thomson Intermedia is committed to becoming the key provider of marketing tools
which help in providing maximum value for companies' advertising expenditure and
core technology tools to the media industry as a whole.  The industry remains
the last 'trust' industry and developing platforms coupled with the
fragmentation of media is creating increased demand for Thomson Intermedia's
products and services.


The Group has built a much stronger position in the market place as a result of
the integration of the businesses, the enhancement of data sets and products and
the investment in relationships.  This has led to a significant pipeline of
development projects currently under discussion, the conclusion of which will
not only bring immediate revenues but also additional recurring revenue streams
for the future of the core business.


In addition the successful conclusion of the Group M negotiations has resulted
in the removal of a major sales barrier for the Group's online services.
Although it is still in early stages, in the Board's view, with the introduction
of additional dedicated sales resource this will begin to have a positive impact
to recurring revenues in the next financial year.


The Board is confident that the progress made and platforms being built will
continue to drive and exploit the Group's significant opportunities.


Enquiries:

Thomson Intermedia
    Sarah Jane Thomson, Joint Chief Executive                      020 8466 2906
    David Trendle, Finance Director

College Hill
    Adrian Duffield/Ben Way                                        020 7457 2020


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