May 2008 Financial News

OCM Releases First Quarter Results

May 29, 2008

One Caribbean Media Limited
Results for the First Quarter Ended March 31, 2008

Earnings Per Share
For the First Quarter Ended March 31, 2008, One Caribbean Media Limited (OCM) reported Earnings Per Share (EPS) (inclusive of ESOP) of 22 cents, up 15.8 per cent or 3 cents on the 19 cents reported on the corresponding period in fiscal 2007.

Financial Highlights:
• Revenue, up 12.3 per cent or $12.7 million to $116.2 million
• Cost of Sales, up 9.5 per cent or $6.8 million to $77.9 million
• Gross Profit, up 18.3 per cent or $5.9 million to $38.3 million
• Administrative Expenses, up 13.7 per cent or $2.1 million to $17.7 million
• Marketing Expenses, down 28.9 per cent to $0.7 million
• Operating Profit, up a significant 26.1 per cent or $4.1 million from $15.7 million to $19.9 million
• Interest Income, down 51.5 per cent or $0.6 million to $0.6 million
• Finance Costs, up a considerable 130.4 per cent or $0.3 million to $0.5 million
• Profit After Taxation, up 16.4 per cent or $2.1 million from $12.6 million to $14.7 million

Outlook and Recommendation
The Chairman stated that the integration of the radio stations acquired in November 2007, namely Hott 93 (Trinidad), the Wave (St. Lucia) and Gem FM (St. Kitts) and 93.9 FM (Antigua and Montserrat), proceeded seamlessly with initial projections exceeded. Also, OCM won the exclusive right to produce and distribute Jamaica’s first Annual Reggae Awards, which will be distributed worldwide.

Other revenue events anticipated for fiscal 2008 include the 2008 Olympics and the Local Elections.

The shares of OCM last closed at a price of $18.70. At the current price and our forecasted EPS of $1.40 for fiscal 2008, this share is trading at a price to earnings multiple of 13.4 times. Additionally using a multiple of 14 times and the forecasted EPS of $1.40, this share has an expected return of approximately 5 per cent or a target price of $19.60. At this time, we continue to recommend a BUY on this share.


Nancy Chen
WISE Equity Research Team