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MediaCorp Sells Onthebox and Forexspace
04/12/2012 : MEDIACORP SELLS UNDERPERFORMING INTERNET SUBSIDIARIES
Trading update reveals that Onthebox and Forexspace have been disposed of for a total of GBP 250,000
Sarah Vincent, chief executive officer of UK internet media and gambling company Media Corp, revealed in a trading update this week that the company has shed underperforming publishing subsidiaries Onthebox and Forexspace, along with the domains associated with them, for a total of GBP 250,000.
The two sites are on the group's balance sheet at GBP 130,000 and the sale therefore represents a profit of GBP 120,000.
In addition, the directors estimate that the sale will save the group approximately GBP 350,000 a year in staff and associated costs. Forexspace has only recently been launched and is yet to generate any material revenues for the group and Onthebox was loss making in the year to September 2011.
Vincent revealed in the update that the group is considering new gaming-related acquisitions that may constitute a reverse takeover under the AIM Rules and, as a result, would require shareholder approval.
"The sale of onthebox.com and forexspace.com further reduces the loss making assets in our online publishing business whilst boosting our cash position," Vincent said in the update statement.
"Eyeconomy continues to trade well and we look forward to provide a full update on it together with [online casino] Purple Lounge in the publication of our interim results which we hope to be by early June."
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