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PRESS RELEASE
2005 AGM - A Transformational Year
SPECTRUM INTERACTIVE PLC
(“Spectrum” or the “Company”)
2005 annual general meeting
a TRANSFORMATIONAL year
Spectrum Interactive plc (SIN:LN), the digital services and payphone provider, will hold its Annual General Meeting today at 12pm at Citigate Dewe Rogerson, 3 London Wall Buildings, London, EC2M 5SY.
Lord Young of Graffham, Non-executive Chairman of Spectrum, will make the following statement to shareholders:
“This is the first AGM since your Company was admitted to AIM in April of this year.
Your Company is making good progress towards becoming the leading provider of public interactive digital services at airports, hotels and major retail locations in the
UK and Europe. To this end the Company has recently acquired the assets of Broadreach Networks Limited which, together with our existing estate, will result in approximately 1,700 fixed and wireless internet access units in operation.
Corporate Developments
We are pleased to announce that Spectrum has entered into an agreement with T-Mobile for the provision of T-Mobile WiFi services to some 100 selected Spectrum customers. We believe that this is just the beginning of a relationship that should quickly expand on the number of sites covered and significantly enhance our WiFi business.
Furthermore, Spectrum has just concluded a deal with Virgin Retail Ltd. to roll out coin operated internet terminals to its major UK stores which will provide e-mail and surfing capabilities and is in final discussions with Virgin Digital around customers being able to have interactive access into their digital music download service. The first three stores, including the flagship Oxford Street Megastore in London will be operational by Christmas, with a further 14 stores operational early in the New Year. If these prove successful, the service may extend across further Virgin Megastores during 2006. We are also planning to offer the Virgin Digital music download service more widely throughout our network during 2006.
There are many other opportunities to expand our activities, both in the UK and Europe, being investigated by Spectrum both in internet and Wi-Fi.
Spectrum believes that its expansion in the digital services sector will mean that within three years, Spectrum will operate more internet units than payphones. Your directors also believe that the revenues and profits from non-payphone activities will outstrip payphone income well before the end of the three-year period.
Trading Update
In the first four months of the year, internet revenues and other non-payphone revenues have performed strongly and are up 50% on the prior year on a like for like basis. We have secured planning permission for the installation of 46 ATMs on our public payphone estate and are well on course to achieve our ATM target for the current year.
Core payphone revenues declined in the same period by 10% in comparison with the same period last year. Nevertheless the pace of organic and acquisition-driven growth have enabled your Company to achieve overall revenue growth and a 15% increase in operating profit before goodwill amortisation on a like for like basis for this four-month period, and the directors anticipate that this level of steady growth will continue for the full year.”
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English
