10.15am: Interactive media and games group Yoomedia has warned it will not be profit making until at least the first quarter of 2006, following protracted re-negotiations of its William Hill contract.
Interactive media and games group Yoomedia has warned it will not be profit making until at least the first quarter of 2006, following protracted re-negotiations of its William Hill contract.

In a trading update, the AIM listed group said today that although it has renewed its agreement under improved terms with William Hill - the bookmaker for whom it runs a digital sports channel - analysts have forecast losses for 2005 at around£1.6m.

Yoomedia managing director Neil MacDonald said: "The negotiations have taken longer than we thought but we are confident that under the new terms the William Hill channel will be a very good, profitable business next year. It's just not in time to turn around fortunes before the end of this year."

New terms include providing a daily interactive afternoon show for Channel 425's in-store pilot for which Yoomedia will receive production fees.

In order to strengthen its balance sheet Yoomedia is also looking to sell its dating division, which includes brands such as Dateline and Avenues.

MacDonald says that if a sale is not concluded within the 12 months then the group will also consider floating the division in its own right as a way of realising its value.

Topics