Contract win with Citibank
Deal Group Media PLC
21 January 2008
Press Release 21 January 2008
Deal Group Media plc
('DGM' or 'the Group')
DGM wins contract with Citibank Asia
Trading update
Deal Group Media plc (AIM: DGM), an independent online marketing group, today
announces that it has won a contract to become the only approved digital media
agency for Citibank Asia's credit card business line. The contract encompasses
digital media planning and buying strategy in addition to execution, and is the
first client for the Group's new business unit, Deploy Digital, 'Deploy'.
Deploy will support Citibank's' online customer acquisition strategy which is
targeting 10% of all new credit card customers to be delivered through the
Internet. A key component of remuneration is delivery of agreed objectives,
which ties in with the Groups performance based delivery ethos.
Adrian Moss, Chief Executive of DGM, said: 'This is the first contract with a
major brand we have won in Asia where we are working as a more complete digital
media agency in addition to our existing business units. We have a proven track
record of delivering customers to clients and are very excited about the
prospects of this contract. The Group is currently in discussions with other
major brands in Asia to provide a similar offering.'
Trading update
Following the recent disposal of a majority stake of the UK business to Isco
Technical Services Ltd ('ITS') for £1.5 million, the Group can provide the
following update:
£1 million from the proceeds of the sale were received before the financial year
end of 31 December 2007 with a further £500,000 due to be received no later than
31 January 2008.
This cash inflow satisfies the Groups working capital and current investment
plans.
In addition, the transaction has created two important drivers of cost savings
for the Group. First, technology costs have been materially reduced and have in
effect been outsourced. Secondly, due to the refocus on Asia, UK-based central
costs have also been significantly reduced, the benefits of which will accrue
over 2008.
Results for 2007, as previously stated, are expected to be in line with the
Board's earlier announcements showing a reduced post-tax loss relative to that
experienced in 2006, before account is taken of the impact of the recent UK
disposal.
Unaudited 2007 trading results demonstrate good underlying growth in overseas
operations. The UK based business showed a profitable contribution for the
period although at deteriorating levels relative to prior periods.
Adrian Moss commented: 'The Group can now focus purely on the Asia Pacific
region and the benefits of this can already be seen. Customer concentration
continues to be reduced and a number of new clients have been added across all
the territories DGM operates in. We remain confident that the Group will return
to positive cash flow in H1 2008 and that DGM will return to a profitable
position during 2008.'
-Ends-
For further information, please contact:
Deal Group Media plc
Adrian Moss, CEO
Evolution Securities Limited
Tom Price, Corporate Finance Tel: +44 (0) 20 7071 4300
Jeremy Ellis, Corporate Finance
www.uk.evosecurities.com
Abchurch Communications
Ariane Comstive/Franziska Boehnke Tel: +44 (0) 20 7398 7700
franziska.boehnke@abchurch-group.com www.abchurch-group.com
This information is provided by RNS
The company news service from the London Stock Exchange
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