TLA Worldwide : 2017 TLA Interims Accounts

TLA WORLDWIDE PLC

INTERIM RESULTS

SIX MONTHS ENDED 30 JUNE 2017

27 SEPTEMBER 2016

15 November 2017

TLA Worldwide plc

("TLA" or "the Group")

Unaudited interim results for the six months ended 30 June 2017

TLA Worldwide plc (AIM: TLA), a leading athlete representation and sports marketing business, is pleased to announce its interim results for the six months ended 30 June 2017.

Financial Highlights Headline figures

• Revenue growth of 7.5 % to $22.2 million (H1 2016: $20.7 million)

• Operating income1 growth of 3.0% to $16.3 million (H1 2016: $15.8 million)

  • Headline EBITDA2 of $2.5 million (H1 2016: $2.5 million)

  • Headline Profit Before Tax3 of $1.7 million (H1 2016: $1.8 million)

  • Headline Diluted EPS4 of 1.79 cents (H1 2016: 0.82 cents)

  • Sports Marketing Headline EBITDA of $3.3 million (H1 2016: $2.7m) growth of 22.3%

  • Baseball Headline EBITDA of $1.7 million (H1 2016: $1.6m) an increase of 8.5%

    Statutory figures

  • Operating loss of $5.5 million (H1 2016 loss: $3.6 million)5

  • Loss before tax of $6.6 million (H1 2016 loss: $5.0 million)5

  • Loss per share of $2.7 cents (H1 2016 loss: $3.7 cents)

• Net debt as at 30 June 2017 was $25.0 million (H1 2016: $25.8 million)

• Banking facilities renewed and the Group in full compliance

  Operational Highlights

  Underlying fundamentals of the business remained robust as Sports Marketing and Baseball Representation businesses demonstrated revenue growth and have seen the momentum carry through into the second half of the year.

  Baseball Representation

• Baseball Representation revenue was $6.8 million (H1 2016: $6.7 million)

• Record offseason for the division with contracts worth $270m negotiated (H1 2016 offseason:

  $174m) reflecting investment made in 2016

• 16 clients eligible for contract arbitration in the current offseason (H1 2016: 20)

• 20 MLB free agents in the current offseason (H1 2016: 17)

• Revised earn out and contract extensions put into place for our Baseball North America and Baseball Latin American businesses with key management teams contracted out to 2021/22

• 87 MLB clients on the all the MLB teams 40-man roster (H1 2016: 89)6, of which 35 are fee paying (H1 2016: 33)

  Sports Marketing

• Sports Marketing revenue grew 9.9% to $15.4 million (H1 2016: $14.0 million)7

• Events continue to develop with four delivered in the first half of 2017, including Brazil vs Argentina soccer match in front of 96,000 at the MCG in Australia and various events in H2

• TLA Australia continues to perform well and is in line with management's expectations

• US Sports Marketing restructuring is complete and significant effort is being put into returning this business to growth

• Talent Marketing group expanded to include the representation of tennis players

  Post period highlights

  Baseball

• Nine clients in the MLB All Star game - a TLA record (2016: 4)

• TLA had eight players perform in the MLB World Series

• George Springer named World Series MVP

  Sports Marketing

• Sloane Stephens wins her first major, the ladies singles 2017 US Open tennis championship

• Golf continues its trend of recruiting the best young golfers in the US, highlighted by 2017's top

  amateur, Sam Barnes, joining TLA

• Delivered a series of events

  • the 2017 American College Football season opener in Sydney in August, with Stanford University playing Rice University

  • the Australian national rugby union team against the Barbarians, in October

  • the New Zealand All Blacks against The Barbarians in front of a 62,500 crowd at Twickenham in November

1. Operating income is equal to gross profit in the income statement.

2. Headline EBITDA is defined as statutory operating profit adjusted to add back depreciation, amortisation of acquired intangible assets and any acquisition related charges, share-based payment charges and exceptional items.

3. Headline EBITDA after bank interest and depreciation.

4. Headline earnings per share is defined as headline profit for the year divided by the weighted average number of ordinary shares in issue during the year. Headline profit for the year is defined as profit for the year adjusted to add back amortisation of acquired intangible assets and any other acquisition related charges, share based payment charges, fair value movement on financial derivatives, unwinding of discount on contingent consideration and exceptional items.

5. After $7.5 million of IFRS and exceptional costs, including charges relating to amortisation ($1.8 million); additional fair value movements on contingent consideration primarily relating to revised baseball earnouts ($4.8 million); and a charge in respect of share based payments ($0.7 million).

6. As at the start of the 2017 or 2016 Baseball season.

7. H1 2016 financials included in this announcement have been restated.

Mike Principe, Group CEO of TLA, commented:

"We are pleased with the operating performance of Sports Marketing and Baseball Representation businesses as they continue to develop and move forward positively against the backdrop of the obvious disruption to management's focus and time on resolving our internal issues. Despite these headwinds, the business has continued to win new clients and grow revenues in the first half of the year. We are making good progress on the restructure of the US sports marketing business and have delivered more world class events than in any other year. In addition, we have organically started the representation of tennis players which will have a positive benefit in future years. In our Baseball business we have 16 clients eligible for contract arbitration and 20 clients who are MLB free agents in the current offseason.

"Looking ahead, the momentum achieved in the first half has carried through into the second half. In H1 we delivered four quality events in Australia and the US. TLA Australia has continued to thrive and, on the heels of recent wins, we are witnessing momentum in our US Sports Marketing unit. Additionally, the Baseball Representation business is performing in line with management's expectations. We are delighted to see our sports stars achieving success across the board. Their

success provides our team with plenty of new opportunities to serve them well. The above, in conjunction with a supportive lender, new long-term financing arrangements in place and the necessary adjustments on the US finance function, procedures and controls well under way, enable the Board to look forward with confidence."

Enquiries:

TLA Worldwide plc
Bart Campbell, Executive Chairman	[phone] On the day [phone] Thereafter
Michael Principe, Chief Executive Officer	[phone] On the day [phone] Thereafter
Numis Securities
Nick Westlake and Oliver Hardy (Nomad)	[phone]
Christopher Wilkinson
Luther Pendragon
Harry Chathli, Alexis Gore	[phone]

About TLA

TLA is a leading athlete representation, sports marketing and event management group quoted on London's AIM. The Group derives revenues from long term agency relationships with many prominent US and international sports stars, broadcasters and media personalities associated with major sports including the MLB, NFL, NBA, PGA TOUR, AFL, Olympians and cricketers. In addition, it also provides a range of services in respect of media consultancy, sports sponsorship and event creation and ownership. With over 170 full-time personnel, TLA serves its clients from 10 locations worldwide including its offices in London, UK; New York, Newport Beach, Houston, Charleston, San Francisco, USA; Melbourne, Perth, Adelaide and Sydney, Australia. For more information, please visit www.tlaworldwide.com.