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ATM S.A. streamlines the Capital Group structure

ATM S.A. sold recently its 60-percent interest in Cineman Sp. z o.o., and decided to end the business operations of iloggo Sp. z o.o. The purpose of those steps is to focus on the company’s core business, i.e. telecommunications and IT services.

Sale of the interest in Cineman sp. z o.o.

Cineman Sp. z o.o. was established as a joint venture of ATM S.A. and Monolith Films Sp. z o.o., a leading distributor of world-class films. Cineman successfully offers the Video on Demand service, and the generally available Internet Cinema service which still is an innovative proposal on the Polish multimedia market. ATM has sold its interest in Cineman Sp. z o.o. to the existing co-owner, Monolith Films Sp. z o.o., and intends to focus exclusively on technical support for Cineman services.
The technological platform on which the Cineman services are based was the first deployment of the ATM InternetTV platform, completed with 100% success. Since then, the platform has been successfully deployed commercially by several customers, including TV Biznes, Tele5, Totalizator Sportowy and Rzeczpospolita (the tv.rp.pl portal). The currently offered ATM InternetTV platform efficiently handles the IPLA.TV portal (owned by Redefine) which is viewed by more than 1 million users monthly, and is the leader in the Polish Internet TV segment, with a share of over 30% in the total viewing time (according to a survey by Megapanel PBI/Gemius, Sep 2009).

“In our cooperation with Cineman, we want to focus on our core competencies, i.e. providing the technology, while leaving the management, company development, and multimedia content sales to Monolith Films, our previous partner,” said Roman Szwed, President, ATM S.A. “We decided that such solution would be the best both for the further growth of Cineman and for ATM, which from now, being free of capital commitment, will be able to provide its technology with no restrictions to all market players,” added Szwed.

Ending the business operations of iloggo Sp. z o.o.

At the same time, the ATM S.A. Management Board and the other shareholder of iloggo Sp. z o.o. decided to end the business operations of this company. The www.iloggo.pl website published by iloggo Sp. z o.o. was one of so-called “Web 2.0” initiatives. It provided a tool for conveniently managing, from any computer on the network, links to the user’s favorite websites. Also, it supported establishing Internet user communities focused on common areas of interest.

The iloggo Sp. z o.o. shareholders jointly decided that further development of the company and its products would require significant marketing expenditures to increase the portal’s reach, and build popularity necessary to pass the profitability threshold. Taking into consideration that the involved financial risk would be too high, and the project’s success still would be uncertain, the shareholders decided jointly to end the project. The www.iloggo.com portal will be shut on January 31, 2010. The technological knowledge and experience gained in operating iloggo services may be successfully used in other future projects.
“Iloggo was never a significant burden to ATM S.A., but to achieve a revenue level that would be satisfactory for the shareholders, it would be necessary to incur unacceptable financial expenditures,” said Tadeusz Czichon, Vice-President for finances, ATM S.A. “In addition to the measurable benefit of ceasing to finance the iloggo company, the decision to liquidate it will enable us to focus on the more profitable operations being successfully conducted by ATM,” added Czichon.

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