Cineworld Group plc
06 March 2008
6 March 2008
Cineworld Group plc
Announcement of formation of advertising joint venture
Cineworld Group plc ('Cineworld') announces today that, in association with
Odeon Cinemas Limited ('Odeon'), it has formed a 50:50 joint venture, Digital
Cinema Media ('DCM') to address cinema advertising. DCM has reached agreement in
principle to acquire certain assets from Carlton Screen Advertising Limited
('CSA'), a wholly owned subsidiary of ITV plc. The agreement in principle will
be the subject of a definitive asset purchase agreement (the 'Agreement') and
will be subject to a competition approval process.
This follows the announcement of 11 December 2007 when Cineworld announced that
it had been approached by CSA with a proposal materially to amend the terms of
the existing screen advertising contract (the 'Contract'). As part of the
Agreement the Contract will be terminated. Cineworld has received full payment
from CSA in respect of January and February screen advertising and payments
through to execution of the Agreement will be made on an agreed revenue share
The consideration payable by DCM for the assets in connection with the Agreement
is £500,000 in cash.
Steve Wiener, Cineworld CEO, commented:
'I am delighted we have reached a mutually acceptable conclusion to negotiations
with CSA and ITV.
'DCM plans to develop a more flexible, targeted and timely service for
advertisers and local businesses, who hitherto have not been able to make full
use of advertising across the cinema sector. I believe this will not only be
attractive to us but also for other cinema exhibitors that wish to take
advantage of DCM's advanced service offering.
'With the growth potential of digital advertising we believe the prospects for
DCM are highly attractive.'
Nick Miles 020 7153 1530
Georgina Briscoe 020 7153 1548
Charlotte Winder 020 7153 1565
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