Viva Media AG
VIVA Media AG english
VIVA Group reduces forecast for 2002
Ad-hoc-announcement transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
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– Concentration on core business and hiving off of other participations
continues – VIVA Group reduces forecast for 2002 by reason of one-off effects –
Advertising market remains very taut
Cologne, 07/30/2002: The VIVA Group reduces its revenues and profit forecasts
for 2002. This was caused in the main by extraordinary effects arising from the
planned move and the possible insolvency of the PC game developer WESTKA, in
which BRAINPOOL holds a 60% interest. The original forecast included a sizeable
calculated contribution from WESTKA. WESTKA has not yet been able to sell a
newly developed high-end computer game and requires intermediate financing. VIVA
Management will definitely not be providing this financing. As a result, WESTKA
is going to file for insolvency in the near future and will have to be written
off completely in the VIVA Group balance sheet with the consequent effects on
the P&L. The ad market still remains taut. The net volume of the entire German
TV ad market in 2002 could well lie up to -10% below the level of 2001. Whilst
VIVA even provisionally managed to achieve growth of 2 to 3% in advertising
income from the classic consumer goods articles in 2002, it will still have to
reckon with decreases in advertising income from the music industry, which will
be hard to compensate. As a result of the effects given, Group revenues for 2002
are expected to amount to EURm 109 (instead of EURm 125). In the case of the
EBITDA and EBIT forecasts (EURm 44 and EURm 37) announced at the beginning of
2002, it was expressly stated that no figures for the additional removal and
technical costs could be given yet. This expenditure can now be quantified and
they, together with the effects of the market and WESTKA already stated, have
given rise to a revised forecast for EBITDA at EURm +26 and EBIT at EURm +15. By
the end of the year we are still expecting a positive operative cash flow. Due
to lower revenues, additional depreciation and amortization, and cost savings at
the same time, only approx. EURm 1 of the reduced EBIT forecast will be cash
effective. The VIVA Group has at its disposal a high level of cash to the sum of
just under EURm 50 (as at 06/2002) which will enable the Group together with
the new major shareholder AOL Time Warner to facilitate the planned further
internationalisation of the VIVA Group. Contact: www.vivamediaag.com
end of ad-hoc-announcement (c)DGAP 30.07.2002
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WKN: 617106; ISIN: DE0006171069; Index:
Listed: Neuer Markt in Frankfurt, Freiverkehr in Berlin, Bremen, Düsseldorf,
Hamburg, Hannover, München, Stuttgart
300828 Jul 02
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