LONDON (ShareCast) - (Sharecast News) - Catalyst Media Group (CMG) updated the market on Sports Information Services on Thursday, in which it holds an interest of about 20.54%.
The AIM-traded firm said it had been advised by SIS that its profit before tax for the year ended 31 March would now be £0.8m, or £0.7m for continuing operations, following a requirement to make additional provisions after the period ended for the ongoing litigation with the Racing Partnership.

SIS's cash balance was not impacted by the provision, the board said, and as at 31 March it stood at £60.1m.

As it outlined in an update on 17 June, CMG said SIS's operations were impacted between mid-March and June following the outbreak of Covid-19.

Following the cancellation of horse and greyhound racing from mid-March, SIS saw the resumption of horse and greyhound racing in England from 1 June, and horse racing in Ireland from 8 June, with the reopening of licenced betting offices in England from 15 June resulting in a "return to full operations".

"SIS has informed the company that whilst trading over the summer continued to improve, since further Covid-19 restrictions started to be implemented in October and November, SIS has seen the temporary closure of the majority of the retail licenced betting offices which it provides services to," the CMG board said.

"SIS continues to be able to provide content for its customers during this time and has sought to offset revenue shortfalls from retail with increased digital revenues.

"However, SIS's management have confirmed to the company that there remains significant uncertainty as to when retail markets will reopen in full."

As a result, CMG said SIS was expecting to be loss-making in its current financial year, although the magnitude of its loss was currently difficult to forecast, given the uncertain nature of the retail market return.

Despite the impact of Covid-19, SIS had seen growth in its international and online customer base and revenues during the year, most recently launching channels for Latin America, and had seen the launch of its competitive gaming, or esports, product, as well as increased benefit from the acquisition of the 49's business completed earlier in the year.

"Given the ongoing uncertainty in respect of SIS's current trading due to the impact of Covid-19, SIS has informed the company that it has decided to defer any decision regarding the timing or quantum of any dividend which it may or may not choose to declare in relation to its previous year's performance, until such time as SIS has greater visibility on the full impact of Covid-19 on its business," CMG explained.

At 1105 GMT, shares in Catalyst Media Group were down 1.89% at 52p.

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