Shares at Conexion Media Group (LON:CXM) jumped by 16.6% to 1.75p this morning on news that losses in the full year to the end of December 2009 had fallen to £630,002 - down from £1.59m in 2008. Revenues fell to £3.57m from £4.01m but gross profits rose to £1.79m from £1.21m, principally due to the mix of income from higher margin catalogues.
Chairman Brian Scholfield said: "Conexion has delivered a much improved performance in 2009 despite a further drop in turnover from client contracts expiring. The CEO, Justin Sherry, has concentrated on overhead control as well as attracting new business. Conexion opened an office in 2007 in Hong Kong as our major new shareholder was based there and the shareholder's belief was that the market was ready for expansion. The opportunities never presented themselves and the office was closed during 2009. Whilst the core business of music publishing performs well, Justin's expertise in media rights will gradually change the direction of Conexion, as the group expands into the areas of multiple rights collection including ancillary and broadcasting rights."
Conexion is an entertainment and media group that combines music administration with film and television production and a rights management group. Last week, it announced an agreement with Comcast International Media Group that encompasses the administration of ancillary television rights throughout the world, excluding the US and Canada. CIMG retains a significant production output which is aired on its international channels and licensed to third parties worldwide. The deal encompasses the administration by Conexion of revenues generated from cable-retransmission schemes and private copying royalties available throughout the world.
In March Conexion acquired 70% of the assets in Kid Gloves Music Group (KGM), including music publishing rights, master recording rights, and third party contracts. It paid US$220,000 for the Los Angeles based assets and took on debts totalling US$693,000. The company is now setting up a US operation trading under the Conexion banner that will market its copyrights and services to the film and television studios.
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