LONDON (ShareCast) - (ShareCast News) - Sports betting content Specialist Sports Information Services [sis], in which Catalyst Media Group [CMG] is a 20.54% shareholder, officially approved a dividend to shareholders, of £15m, Catalyst Media Group reported on Monday.
"Following the continued progress made with regard to future media rights and customer contracts the Board of Sports Information Services Limited has approved a dividend to shareholders of £15m to be paid today", SIS said in a statement.

Further adding that, monetising media rights deals, in the past, generated "significant" cash reserves.

"The historic success of SIS in monetising media rights deals has generated significant cash reserves currently standing at approximately £75m. This will enable a dividend payment to be made whilst retaining a level of funding in the business to cover its ongoing commitments and sufficient funds to enable management to develop the long-term strategy for the business. Depending on the level of cash required to implement the new strategies it will be possible to consider further dividend payments in due course despite lower future cash generation as referred to below."

In contrast, SIS also pointed to the uncertainty it faced in the Independent market which was accountable for approximately 15% of the sector.

"The delayed DCMS Triennial Review is causing uncertainty in the Independent market which accounts for approximately 15% of the sector and is resulting in a reluctance to sign long term contracts with us. When added to the increased competition for media rights acquisition generally in the UK and Irish market these factors are likely to impact future revenues. At the same time, the Group is experiencing increased litigation costs relating to a number of issues, although legal advice indicates a successful outcome is expected for SIS. As a result, profits are likely to be lower than previously guided, and budgeted for, for the year ended 31 March 2018."

These factors, when added to increased competition for media rights acquisition, mainly in the UK and Irish market, were likely to impact future revenues, the company added.

SIS also announced that it had entered into a new long-term media contract, as previously announced, to sell content to 85% of the aforementioned markets.

At the same time, the group confessed to facing augmented litigation costs concerning various issues, even as legal advice indicated a "successful" outcomes was probable for SIS, meaning profits were more likely to be lower than previously suggested and budgeted for, for the year ended 31 March 2018.

Meanwhile, the dividend payment owed to CMG was said to be approximately £3.1m, while its board was considering the most appropriate means to distribute the majority of fund received from that payment.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE