re: *** up 37% *** IBM TowerLevel 27, 60 City RoadSouthbank VIC...

re: *** up 37% *** IBM Tower
Level 27, 60 City Road
Southbank VIC 3006
Australia
T +61 3 9674 4644
F +61 3 9674 4655
www.multiemedia.com
[email protected]
multiemedia limited ABN 12 003 237 303 ASX Code “MUL” Page 1
Multiemedia provides 2 Year
Forecast
Friday 15 October 2004
The Directors are pleased to provide Group and Individual entity forecasts for the
years to June 2005 and June 2006. The provision of the forecast fulfills the
commitment made at the recent EGM.
Multiemedia’s broadband satellite division, NewSat, has received much of
management’s effort and is now living up to initial expectations. NewSat has
started to mature and its Australian, Middle East and North African operations are
growing week on week.
MTD is an established business with steady growth prospects and a loyal
customer base. It now derives some of its revenue from NewSat, demonstrating
the synergistic nature of these two operations.
The recent purchase of Airworks - and the long due diligence process leading up
to the acquisition, enabled a very thorough understanding of that business and its
future financial contribution.
It is unusual to forecast beyond 12 months but due to the recurring nature of
revenues in the NewSat business, the Board wants shareholders to understand
the growth benefits associated with such businesses.
Forecast highlights:
· The Group is expected to generate a profit of $1.6 million (after minority
interests) in the second half of FY05 and move to a full year net profit of
$12.8 million (after minority interests) for FY06.
· Forecast to move to positive cash-flow by the end of the March quarter of
FY05, as both Airworks and NewSat generate a positive EBITDA.
IBM Tower
Level 27, 60 City Road
Southbank VIC 3006
Australia
T +61 3 9674 4644
F +61 3 9674 4655
www.multiemedia.com
[email protected]
multiemedia limited ABN 12 003 237 303 ASX Code “MUL” Page 2
Forecast highlights (continued)
· Revenue growth from:
o Acquisition of Airworks and subsequent roll-out of marketing and
sales effort;
o Compounding effect of NewSat 2 year recurring revenue sales
contracts;
o Increased NewSat market penetration in the Middle East and North
Africa;
o Growth in HiBIS and the Broadband for Health NewSat products,
and
o MTD’s increased inter-segment satellite equipment revenue.
· Positive EBITDA generated by all divisions in second half of FY05 and
rising to $12.3 million in the second half of FY06 driven by strong
contribution of NewSat and Airworks.
· EBIT margins improved from the current loss position to just under 20%
by the second half of FY06 as the divisions leverage their fixed cost bases.
Multiemedia Limited Consolidated Forecast
FY05 - 1st Half FY05 - 2nd Half FY05 - Full Year
NewSat MTD Airworks Elim. Consol. NewSat MTD Airworks Elim. Consol. NewSat MTD Airworks Elim. Consol.
$' m $' m $' m $' m $' m $' m $' m $' m $' m $' m $' m $' m $' m $' m $' m
Revenue 4.3 10.7 1.4 (1.5) 14.9 12.4 15.0 12.3 (3.0) 36.7 16.7 25.7 13.7 (4.5) 51.6
EBITDA (3.0) (0.1) (1.0) - (4.1) 1.3 0.4 1.9 - 3.6 (1.7) 0.3 0.9 - (0.5)
EBIT (3.7) (0.1) (1.0) (0.1) (4.9) 0.6 0.4 1.7 (0.1) 2.6 (3.1) 0.3 0.7 (0.2) (2.3)
Interest - (0.1) - - (0.1) - (0.1) - - (0.1) - (0.2) - - (0.2)
Tax Expense - - - - - - - (0.2) - - - (0.2) - -
Net Profit (3.7) (0.2) (1.0) (0.1) (5.0) 0.6 0.3 1.5 (0.1) 2.5 (3.1) 0.1 0.5 (0.2) (2.5)
Less Minority
Interests 0.4 0.4 0.8
Net Profit
Attributable To
Members (4.6) 2.9 (1.7)
FY06 - 1st Half FY06 - 2nd Half FY06 - Full Year
NewSat MTD Airworks Elim. Consol. NewSat MTD Airworks Elim. Consol. NewSat MTD Airworks Elim. Consol.
$' m $' m $' m $' m $' m $' m $' m $' m $' m $' m $' m $' m $' m $' m $' m
Revenue 18.2 19.7 15.9 (4.4) 49.4 27.4 21.3 17.9 (5.1) 61.6 45.6 41.0 33.8 (9.5) 110.9
EBITDA 2.6 0.8 3.6 - 7.0 7.4 1.0 3.9 - 12.3 10.0 1.8 7.5 - 19.3
EBIT 1.9 0.7 3.5 (0.1) 6.0 6.6 0.9 3.8 (0.1) 11.2 8.5 1.6 7.3 (0.2) 17.2
Interest - (0.1) - - (0.1) - (0.1) - - (0.1) - (0.2) - - (0.2)
Tax Expense - - (1.1) - (1.1) (1.1) (1.1) - - (2.2) - (2.2)
Net Profit 1.9 0.6 2.6 (0.1) 4.8 6.6 0.8 2.6 (0.1) 10.0 (3.1) 0.1 0.5 (0.2) 14.8
Less Minority
Interests (1.0) (1.0) (2.0)
Net Profit
Attributable To
Members 3.8 9.0 12.8