Casinos Not On GamstopNon Gamstop CasinosNon Gamstop CasinosNon Gamstop CasinosBest Casino Sites Not On Gamstop

Air Music eyes games market

Companies: AMU ��
19/04/2006

Restructured music and film publisher and distributor Air Music and Media is contemplating moves into low-budget games and downloading.

AIM-quoted Air Music lost �1.2 million in the six months to last September after the market for its medium-priced DVD-linked films collapsed, when the DVDs themselves became significantly cheaper. Mark Frey, who moved from joint chief executive officer to chairman in a board shake-out last month, says the company is sticking to its basic business of providing middlebrow, low-ticket perennially-selling products from its extensive library of CD and DVD rights, while weighing the pros and cons of applying its strategy to low-budget games and downloading.

Air Music, whose former chairman John French is now a non-executive director, has also licensed 100 more 'upmarket' titles from Universal in a deal clinched last autumn, which Frey argues could yield gross margins of 40 per cent or more. He insists the formula is to avoid high-risk, high-reward blockbusters and concentrate on unexciting products appealing to consumers of 25 and older, up to great old age, which should generate steady long-term demand.

A name change, perhaps to 'Play24/7' or something similar, is also under contemplation. Frey would like to take advantage of expected sector concentration, but a depressed share price makes this difficult.

Friendly analysts expect current full year pre-tax profits of �4.5 million on �70 million turnover, with �6 million pre-tax on the cards for the following year. At a consolidated 79.5p, down from 307.5p in late 2003, the shares are a tight market, with management holding at least 60 per cent.

If that problem is addressed and present plans look like paying off, they could reward a brave recovery punt, despite current risks.


The Award-winning team at Growth Company Investor produce a complete guide to AIM, providing contact details and financials for every single AIM-quoted company. Click here for more information, and to purchase your copy.

Robert Tyerman

Related Articles:
18/04/2006
10/04/2006
10/04/2006
14/03/2006
13/03/2006

People who read this article also read ...
20/04/2006
19/04/2006
18/04/2006
11/04/2006
10/04/2006

AIM�13.47m 78.50p -1.00p
Other company articles:
19/04/2006
16/12/2005
03/08/2005
24/05/2005
04/05/2004

Sponsored Listings

Property Investment - Advice and Education Sourcing properties that offer significant growth potential to securing finance at preferential rates, we provide the education and opportunity to build significant wealth through investment property.

Jupiter - Investment Management Jupiter offers a wide range of award-winning products - unit and investment trusts, tax free investments, ISAs, PEPs and SIPPs for individuals and institutions.

Save up to 25% on Property Investments Register free today to get exclusive access to superb UK and overseas properties at discounted prices.

Recommendations

API

SELL

Shanks

HOLD

Intec Telecom

SPECULATIVE BUY

Teleunit

HOLD

Speedy Hire

ADD

Printing.com

HOLD

Abacus Group

SPECULATIVE BUY

Gilat Satcom

SPECULATIVE BUY

Zytronic

REDUCE

Shed Productions

HOLD
AIM

Quality picks