Digital Publishing Investment Opportunity – Update Mar 2013

Digital  Publishing  -  Web  -­‐  Daily  -  iPad  -­‐  quarterly  -  Mobile  

Specialist  Sport  Titles  -  Cycling  -­‐  2011  -  Rugby  -­‐  2013  -  Tri  –  2014  -  Running  –  2015  -  and  more  

The  Market  Opportunity  -  UK  publishing  worth  4bn*  -  Digital  advertising  double  digit  growth  -  Cycling  is  fastest  growing  sport  in  UK  -  1.3m  new  ‘customers’  every  year**  -  Running  is  top  seller  in  sector  -  Triathletes  highest  spenders  -  Rugby  World  Cup  in  UK  2013  and  2015    

*Future  of  Publishing  -­‐  NESTA  Jan  2012  **The  British  Cycling  Economy  -­‐  LSE  August  2011  

Revenue  Streams  -  Advertising  -­‐  £10  to  £20  CPM  -  AfRiliate  Sales  –  5-­‐15%  commission  -  App  Sales  -­‐  1.49p  per  issue  

-  Future  revenues  -  Sponsorships    -  Merchandising  -  Licensing  

18%  

29%  

3%  

45%  

3%   2%  

Revenue  by  %  

App  Sales  

Sponsorships  

Merchandising  

Advertising  

AfRiliate  Sales  

Licensing  

Management  Team    Derek  Scanlon  –  Strategy  Media  Strategist  and  Entrepreneur  with  over  25  years  experience.  Founder  -­‐  Denovo  New  Media  in1995,  and  4  other  technology  start-­‐ups.  Launched  digital  services  for  BBC,  FT,  HMV,  Virgin,  Sony,  C4  and  many  more.    Justin  Bowyer  –  Editorial  Director  15-­‐plus  years  of  content  provision  for  clients  as  diverse  as  Football  365,  Reuters  and  the  BBC.  He  has  written  for  every  major  UK  publisher  and  is  a  regular  contributor  to  both  Runner’s  World  and  Outdoor  Fitness.    His  latest  book  is  Running:  Motivation,  Nutrition  and  Hydration’.  

     Stephen  Thompson  –  Technology  A  key  engineer  for  the  BT  Mosaic  Video  on  Demand  platform.  Wide  expertise  in  service  and  application  design  and  rapid  prototyping.  Specialist  in  iOS,  Objective-­‐C,  jQuery,  HTML[5],  CSS[3],  PHP,  MySQL,  Oracle  PL/SQL  and  more.    Jonathan  Hammond  –  Marketing  TriGear  publisher  and  marketing  consultant.  Digital,  PR,  marketing,  media  and  entertainment  industries  since  1985.  Began  his  career  with  Lynne  Franks  PR,  working  for  leading  consumer  brands  such  as  HMV,  Swatch,  Olympus  Sports.  He  started  his  Rirst  company  in  1988.  

5  

IP  Assets  -  Brands  and  Trademarks  -  Content  Archive  -­‐  Video,  photo,  text,  data    -  Worldcup.co.uk  and  other  domains  

-  Publishing  Platform  [COPE*]  -  Business  Intelligence  Application  [BIDMaP**]  -  Video  Editor  –  bespoke  ‘How  To’  video  editor  -  Video  Player  –  bespoke  video  player  for  iPad  and  Web  -  Mobile  Code  Library  -­‐  for  iPad  and  iPhone  apps  -  WorkRlow  processes   *Create  Once  Publish  Anywhere  

**Business  Intelligence  Dashboard  for  Magazine  Publishers  

PublishingServer

TemplateLibrary

CodeLibrary

ContentLibrary

iTunesStore

iPhone

Web

iPad

Dev/TestServer

ContentManagementSystem

TemplateLibrary

LoggingServer

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Assets- video- data- text- images

COPEContent Productionand Publishing SystemContent

Producers

Editors

Developers

Investment  Opportunity  –  1  -  TSB  funded  research  project  -­‐  £40K  -  To  develop  BIDMaP  application  prototype  -  Project  match  funding  of  £20K  for  5%  equity  

Investment  Opportunity  –  2  -  Strategic  funding  -­‐  £120,000  -  £20K  per  quarter  x6  -  For  30%  equity    -  For  marketing,  product  development,  working  capital,  patents  -  Breakeven  in  24  months  

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nning

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[GBP  -­‐  £1,000]   Year  1   Year  2   Year  3   Year  4   Year  5  

Sales   116   517   1,350   2,644   4,461  

Costs   223   436   659   924   1,210  

EBIT   107   81   691   1,720   3,251  

Valuation  [EBIT  x5]   -­‐   405   3,455   8,600   16,255  

Titles   1   2   3   4   5  

Unique  Users  [per  title,  000]   50   150   346   500*   750  

Page  Impressions  [per  title,  000]   300   900   2,080   3,000   4,500*  

Advertising  Sales  [£000]   47   235   670   1,298   2,099  

AfYiliate  Sales  [£000]    

18   51   73   104   152  

App  Sales  [£000]    

11   70   218   469   840  

Financial  Forecast  

*Average  rates  for  whole  sector