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Perform Group PLC (PER)

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Thursday 12 December, 2013

Perform Group PLC

Trading Statement

RNS Number : 4021V
Perform Group PLC
12 December 2013

12th December 2013


Perform Group plc Trading Update


Perform Group plc is providing an update on trading performance for 2013 and the outlook for 2014. The Board expects that full year 2013 revenue will be below the Board's prior expectations and EBITDA significantly below. The Board expects that full year 2014 revenue and EBITDA performance will also be below the Board's previous expectations.




•           Full year revenues are expected to be c.6% below the Board's previous expectations, with annual year on year growth now expected to be in excess of 35%.


·              Q4 is the most important quarter for the business with revenues previously expected to be a third of the annual total and c.50% of adjusted annual EBITDA. Consequently, the revenue shortfall detailed above will directly impact adjusted EBITDA.


·              As Q4 has progressed Advertising and Sponsorship performance has deteriorated, with growth below expectations across several markets, in particular Germany and the USA. This poor performance has primarily affected display advertising revenues where the forward visibility of such revenues is typically less than one month. 


·              Within Content Distribution the underlying performance has been lower than expected. 




•           The Board has reviewed the outlook for 2014 and full year revenues are now expected to grow in excess of 20%, but slower than originally expected, with annual revenues c.6% lower than the Board's previous expectations.  The majority of this revenue shortfall will directly impact adjusted EBITDA.


·              Given the performance of Advertising and Sponsorship in Q4 2013, the Board's previous revenue estimates have been significantly downgraded for display advertising, with year on year growth now anticipated to be c.40%.


·              The 2014 Watch&Bet renewal process is expected to deliver like for like revenue growth for that business of c.10% for the full year 2014. Overall Content Distribution revenues are expected to grow year on year by c.20%.


•           Full year cost of sales and overheads are expected to be c.7% higher than the Board's previous estimates.  This increase is split across rights, staff and production costs in part due to slower than anticipated integration of acquisitions.


•           A major cost review exercise is being instigated across all areas of the business to drive acquisition synergies and cost savings, in particular in the management, technology and operations functions. The full details of this will be outlined at full year results.



Oliver Slipper, Joint Chief Executive Officer, said:


"We are disappointed with the performance of the business in Q4 against our expectations and as a consequence this has an impact on our outlook for 2014. Whilst the issues we have experienced in H2 2013 are unsatisfactory, as a management team we are fully committed to continuing to grow Perform."



Conference call


A conference call for analysts and investors will be held today at 13.00pm.

Dial in: 020 3139 4830

Participant code: 24823830#




Perform Group plc

Oliver Slipper

Simon Denyer

David Surtees

Telephone 0203 372 0600


Tulchan Communications

Stephen Malthouse

Giles Kernick

Telephone 020 7353 4200

This information is provided by RNS
The company news service from the London Stock Exchange

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