30 March 2021

Catalyst Media Group Plc

("CMG", "Catalyst" or the "Company")

Interim Results for the Six Months Ended 31 December 2020

Catalyst (AIM: CMX) is pleased to announce its unaudited interim results for the six months ended 31 December 2020.

CMG is a 20.54% shareholder in Sports Information Services (Holdings) Limited ("SIS") and the results include its share in the profits/(losses) of SIS as an equity accounted associate.

Financial Highlights for the six months to 31 December 2020

·        CMG loss after taxation of £0.43 million (2019: profit of £0.32 million)

·        Loss per share of 2.03p (2019: earnings of 1.53p)

·        Net asset value per share of 58.7p (2019: 66.3p)

·        For the six months to 30 September 2020, SIS achieved

-    Revenues of £68.6 million (2019: £121.1 million)

-    Operating loss of £2.4 million (2019: profit of £1.9 million)

-    Loss after tax on ordinary activities of £1.9 million (2019: profit of £1.7 million)

·        SIS did not declare or pay any dividends to CMG during the reporting period (2019: £5.0 million declared of which £1.03 million was received by CMG)

·        CMG has not declared nor paid any dividends during the reporting period (2019: £1.05 million declared in October 2019 and paid in November 2019)

Impact of Covid-19

SIS's profitability has been significantly impacted by Covid-19 and its management expects SIS to make a loss for its current financial year to 31 March 2021, of between £9 million and £10 million.

SIS's operations were impacted by the cancellation of horse and greyhound racing in mid-March 2020. There was an orderly resumption of horse and greyhound racing in England from 1 June 2020 and horseracing in Ireland from 8 June 2020, with the reopening of Licenced Betting Offices in England from 15 June 2020 resulting in an initial return to full operations at SIS until further restrictions were imposed from October 2020 onwards. SIS was able to continue to provide content for its customers during this time and has generally sought to offset revenue shortfalls from retail with increased online digital revenues. Retail betting shops in England are currently due to reopen in mid April 2021 and, assuming no further government restrictions are imposed, SIS's management expect that SIS will return to profitability in its financial year to 31 March 2022 with increased contributions from overseas activities together with expansion in digital and from its recent acquisition of 49's Ltd.

Enquiries:

Catalyst Media Group Plc

Michael Rosenberg, Non-executive Chairman      Mob: 07785 727 595

Melvin Lawson, Non-executive Director               Tel: 020 7734 8111

Strand Hanson Limited                                    Tel: 020 7409 3494

James Harris / Matthew Chandler

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European (Withdrawal) Act 2018.

Chairman's Statement

For the six month period ended 31 December 2020, the Company incurred a net loss after taxation of £0.43 million (2019: profit of £0.32 million).

Net assets as at 31 December 2020 were £12.3 million (30 June 2020: £12.8 million). Net cash as at 31 December 2020 was £0.2 million (2019: £0.3 million).

CMG's main asset remains its 20.54% stake in SIS and the Company received no dividend (2019: dividend of £1.03 million) from SIS during the period. The value of CMG's investment in SIS has reduced from approximately £12.5 million to approximately £12.1 million, due to its share of the loss incurred. As a result, CMG's net assets per share as at 31 December 2020 were 58.7p (2019: 66.3p), though the carrying value of our investment in SIS will need to be reviewed again at our financial year end in light of its present difficulties.

CMG equity accounts for its share in the loss of SIS which was £1.9 million after tax for its six month period to 30 September 2020 (2019: profit of £1.7 million). SIS's revenues for such period were £68.6 million (2019: £121.1 million) which were derived from its business of providing integrated television and data services to Licensed Betting Offices in the UK, Ireland and overseas. SIS generated an operating loss for such period of £2.4 million, compared to an operating profit of £1.9 million in the comparable period for 2019.

CMG currently has cash reserves of approximately £0.2 million which is sufficient for its present needs.

Set out below is an overview of the activities of SIS's key divisions for the period under review.

SIS Betting - UK and Ireland Retail

SIS continued to provide a core service based on content from UK Horseracing, Irish Horseracing, British and Irish Greyhounds, 49's and International Horseracing to the UK and Irish retail market, including all the major UK bookmaking groups and the majority of the independent market. SIS also supplies additional content and services to its UK and Irish retail customers to cover the early morning period as well as evening products.

The last year has seen significant disruption from Covid-19 with SIS's retail customers required to close or significantly restrict their operations in shops for various periods of the year. As such, this area of SIS's business has incurred losses in the period.

SIS Betting - International & Online

SIS produces 24/7 channels covering horseracing, greyhound racing, virtual racing and mixed channels, having secured content covering the whole 24-hour period. Such content includes horseracing from Argentina, Latin America, USA, Germany, Spain, Mauritius, Dubai and Saudi Arabia as well the UK and Irish horseracing and greyhound racing from the UK, Ireland and Mexico.

SIS distributes over 50 channels to international retail and online operators designed to maximise betting opportunities with further customers due to go live in the near future. Many of its international and online operators have signed multiyear agreements.  SIS continues to progress its strategy for increasing distribution, in both new and existing International and Digital markets, using proprietary production technology as well as streaming and data pricing services.

Covid-19, whilst negatively impacting revenues from international retail operators, has resulted in a significant boost to revenues from online operators as end-customers have sought alternative ways to access and place bets on SIS content. Whilst online revenues are benefitting from the current temporary retail restrictions, there is also significant underlying growth.

India

As previously reported, the claim in respect of the Indian project continues to be pursued but the outcome remains uncertain. The legal and associated costs relating to this claim have been significantly reduced but are still impacting profits. SIS accounts for such legal costs as they arise.

Litigation

As previously announced on 9 October 2020, in the case brought by The Racing Partnership ("TRP") and others against SIS's subsidiary, Sports Information Services Limited ("SISL"), and others, the Court of Appeal handed down judgment in relation to the appeals against various elements of the High Court judgment of Mr Justice Zacaroli in respect of liability issues in the case as follows:

1.       Upheld SISL's appeal in relation to the finding of breach of confidence in relation to certain race day data supplied to SISL by a co-defendant; and

2.       Upheld TRP's appeal against the dismissal of its claims for unlawful means conspiracy.

There has been no ruling given in respect of damages and SIS has, after consultation with its advisers, sought an appeal to the Supreme Court which it expects to be heard in late 2021 if granted. SISL have been ordered by the judge to pay 20% of TRP's costs.

Current Trading and Impact of Covid-19

SIS's current trading has been significantly impacted by the Covid-19 restrictions placed on its retail operator customers in the UK, Ireland and across the world who have experienced a series of closures and operational restrictions as part of the battle against the Covid-19 pandemic. Most recently, such restrictions have seen Licensed Betting Offices closed across the UK and Ireland since the end of December 2020 with reopening currently expected in England in mid-April 2021 but potentially subject to further operating limitations.

During the period SIS has seen a series of online operators both in the UK and Internationally sign contracts for new or additional content and is experiencing significantly higher revenues from its online operators due to higher volumes of end-customer use. Such higher revenue has helped offset some of the shortfall from retail operators.

SIS's profitability for its financial year to 31 March 2021 has been significantly impacted by Covid-19 and its management expects SIS to make a loss for its current financial year of between £9 million and £10 million. Although it is too early to be certain of prospects for its financial year to 31 March 2022, it is currently expected by SIS's management that as conditions improve, and retail markets reopen, SIS will return to profitability for that period. Despite the overall adverse impact of Covid-19, SIS has continued to achieve growth in its International and online customer base, most recently launching channels for Latin American and European customers and has seen the launch of its Competitive Gaming (esports) product as well as increased benefit from its acquisition of the 49's business completed earlier in the year.

Outlook

As stated above, it is currently expected that SIS will return to profitability in its next financial year as the benefits from its online businesses and international opportunities develop. The cash position of SIS remains strong though at a lower level than previously anticipated. However, the result of the abovementioned litigation with TRP remains uncertain. Accordingly, no decisions are currently expected to be made with regard to dividend payments by SIS this year. CMG has sufficient working capital for its foreseeable needs and continues to operate at a very low level of overheads.

Michael Rosenberg OBE

Chairman

30 March 2021

Consolidated interim statement of comprehensive income

Consolidated interim statement of financial position

Consolidated interim cash flow statement