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Half Yearly Report
Half-yearly results for the six months ended 30 June 2012

27 September 2012
Motive Television PLC
("Motive", the "Company" or "the Group")

Half-yearly results for the six months ended 30 June 2012

Motive Television PLC (AIM: MTV.LN), the digital television technology, software and services provider, is pleased to announce its half-year results for the six months ended 30 June 2012.


Financial highlights

  • Revenue from continuing operations £493,573 (H1 2011: £1,094,563)
  • Gross profit from continuing operations £109,778 (H1 2011: £390,680)
  • Loss attributable to continuing activities reduced by 18 per cent. to £1,389,603  (H1 2011: £1,704,950)
  • Loss per share from continuing activities 0.05p (H1 2011: 0.12p)
  • Motive has been notified by HMRC that its ordinary shares are now eligible for tax  treatment under the Enterprise Investment Scheme and the Venture Capital Trust Scheme.
  • Motive exercised its right to acquire CCAN's 32 per cent. stake in Motive's Spanish subsidiary.

Operational highlights

Motive technology is achieving increased geographic reach with new and continuing implementations in Central, Eastern and Western Europe, the USA and Turkey:

  • Using Motive technology, Tablet TV LLC, the world's first TV network for iPads and Android tablets, plans a 2013 launch in the USA to a potential market of more than 100 million tablet users growing to 200 million by 2015
  • The Company's second major client, Turkish direct-to-home satellite broadcaster Digiturk, (served by Motive through a relationship with Digiturk's middleware and STB provider, Sagemcom), has now soft-launched its video-on demand service based on Motive's technology.
  • Memorandum of Understanding with South African broadcaster Siyaya for Motive technology employment following expected award of television license by year-end.
  • Engineering underway at TV Nova, the Czech Republic's leading commercial broadcaster and first of six CME markets
  • Mediaset licences issued increases to 324,000 homes; annual contract renewed
 
The Company is extending and developing its technology to grow its future market opportunities:

  • Motive's technology R & D continues to move forward with a new patent for dynamic advertisement placement and a doubling of data-casting speeds and development of a software development kit ("SDK") approach to increase the number of licensed devices containing Motive's technology.
  • Design and creation of a demonstration prototype of Tablet TV in the United States to be ready for use by mid-October.
  • Design and development of a "proof of concept" implementation of Motive's proprietary technology for use by global telecoms.


Commenting on the results, Michael Pilsworth, Executive Chairman, said:

"The signing of the contract with CME demonstrates that our new business model, featuring recurring revenues, has found market acceptance and sets the stage for many more such implementations over the coming months and years.

"However, the Group's financial performance during this period reflects the very difficult economic environment for our broadcasting clients in the media industry.  This caused revenue lags for the Company arising from both the delay in the market launch of Digiturk's new services based on Motive's technology and the extended contract process with CME that was finally completed at the end of June.  

"With the Digiturk soft launch now under way, the CME contract signed (and Motive engineers already working in Prague), and Tablet TV development in progress in the United States, the directors believe that the Company's revenues and GP margins will improve in the second half of this year and that the Group will realise the fruits of the progress made in 2012 in the first half of 2013.

"Despite the negative environment, Motive has continued to gain traction and acceptance for its technology and services in the marketplace, whilst also taking action to mitigate and be responsive to the present difficult trading environment.

"Responding to the reality of a longer sales cycle, the Company has trimmed its staff by over 10%, cut overhead costs, and increased its sales opportunities by both selling in emerging markets such as Africa and developing versions of its technology for cable, satellite, and OTT platforms.  We have also worked hard at replacing the former one-off business model by one that develops growing and recurring revenues in partnership with our clients to build a stable and solid income stream in the future.

"By improving its products, its efficiency and the reach of its technology, the Company believes it will weather this period of challenge and be able to deliver significant shareholder value in 2013 and beyond."Presently, MTL is continuing production on a slate of new programmes including several major sports documentaries, "The Biggest Game in Town" about Irish poker players; "Batmen" a history of Irish cricket; and "When The Game Was Ours", a history of basketball in Ireland in the 1980's. With a well established and growing reputation and a strong production schedule in place, MTL anticipates continued profitable growth.


Enquiries:

Motive Television plc
Michael Pilsworth, Chairman
Leonard M. Fertig, CEO
T: +44 20 7025 8425  

Merchant Securities (Nominated Adviser)
Simon Clements / Virginia Bull
T: +44 20 7628 2200

XCAP Securities (Joint Broker)
Jon Belliss
T: +44 20 7101 7070

Financial PR
Cubitt Consulting

Nicholas Nelson / Madeline Douglas
T: +44 20 7367 5100

Brainerd Communicators
Chris Plunkett / Mike Smargiassi
T: +1 212 986 6667

Media PR
Gerry Buckland
T: +44 7774 860011


Notes to Editors

Motive Television provides software and services to the global television industry, enabling Television Anytime Anywhere™. Motive's patented and proprietary technology platform responds to the heightened viewer demand for watching what they want, when they want, on whatever device they want; and is driven by the mandatory switchover from analogue to digital broadcasting as mandated by the International Telecommunication Union.

Motive Television provides broadcasters and pay television operators with enabling technology that provides opportunities to deliver highly-valued services to viewers that generate additional income and retain existing subscribers, comprising:

Television Anytime. A technology platform that enables digital broadcasters and pay television operators to offer enhanced broadcasting services with or without the need for an Internet connection. These services, include, among others, Video-on-Demand, Catch-Up TV, Virtual Channels, Sneak Preview TV, and Targeted Advertising. Television Anytime is currently in commercial operation in Europe both in digital terrestrial (DTT) and soon in satellite (DTH) environments. Patented in Spain and patent pending in the EU.

Television Anywhere
. An advanced multi-screen multi-channel technology that allows a viewer to control and watch all the content received by or recorded in their main home television equipment on any computer, mobile phone, iPad or any other Internet connected device. Television Anywhere is software-based and can be updated via software upgrades on existing STB. US patent pending.

Motive's content division is:

Motive Television Limited
, a Dublin-based award-winning independent production company that produces factual programmes for Irish broadcasters. It specializes in live sports production and sports documentaries and also produces factual and entertainment series.

Motive Television was founded in London in 2005 and its shares are quoted on the London Stock Exchange (AIM).

http://www.motivetelevision.co.uk


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