18 April 2016
Immedia Group Plc
("Immedia" or the "Group")
FURTHER RE NEW CLIENT CONTRACT:
SUBWAY®
VENDOR APPROVAL AGREEMENT SIGNED
AND
CONTRACT FOR SUBWAY® RADIO SECURED
Vendor Approval Agreement
Immedia (AIM: IME), a supplier of digital audio content solutions for leading brands and global businesses, is pleased to give further details regarding the new client contract as announced on 8 April 2016. Immedia can now confirm it has signed this service and product vendor approval agreement ("Vendor Approval") with the SUBWAY® Franchisor, Subway International B.V.
SUBWAY® Radio Contract
Subsequent to Vendor Approval, the Group has signed a five-year contract with the European Independent Purchasing Company Limited ("EIPC"), a non-profit making organisation owned by SUBWAY® franchisees, for the supply of seven SUBWAY® branded in-store music and marketing channels called SUBWAY® Radio. The Group will also provide in-store equipment to stores.
Under the terms of the contract, SUBWAY® Radio is available to all SUBWAY® franchisees in the UK and Republic of Ireland, France, Germany, The Netherlands, Finland and Sweden (the "Territories").
Immedia will design and deliver country specific versions of SUBWAY® Radio. Each of these channels, delivered via Immedia's Dreamstream™ network, will feature a mixture of relevant music, branding and 'on-air' SUBWAY® marketing messages to tie in with national and regional campaigns.
The SUBWAY® brand is exploring the integration of SUBWAY® Radio with the SUBCARD® app, to make it available to customers out of store in relevant markets.
Immedia will receive an annual subscription fee per franchisee site from EIPC. Under the agreement, Immedia is also exclusively responsible for the production of language-specific marketing content for SUBWAY® Radio, at contracted prices. Additional revenue will also be generated through the supply of Dreamstream™ decoders, which are required by every SUBWAY® store subscribing to the service.
There are currently 3400 stores spread across the Territories. Under the terms of the contract, EIPC will provide Immedia with an indicative forecast of likely orders, for the subsequent two months, on a rolling basis. The Board of Immedia expects significant 'take up' of the service by franchisees, which will build up into the next financial year as the service is rolled out across the existing stores and new franchises are opened.
Bruno Brookes, CEO of Immedia, said: "We are delighted to be working with the SUBWAY® brand and EIPC and look forward to adding a new dimension to the already superb SUBWAY® store experience."
Simon Aldred, Director of Services and Equipment at EIPC, said: "Working with SUBWAY® stores and Immedia, we're pleased to provide a high quality in store radio solution for SUBWAY® Franchisees across many European countries. Immedia have a strong understanding of the needs of SUBWAY® Franchisees which has helped them design and deliver a solution that supports SUBWAY® branding and marketing messages both nationally and regionally, driving real financial benefits."
Manaaz Akhtar, Regional Marketing Director for the SUBWAY® brand said: "The launch of SUBWAY® Radio marks a new chapter for the brand in enhancing the customer and staff experience in store. With bespoke radio content, we will create a unique and engaging experience for our customers, different to other brands in this sector."
For further information please contact:
Immedia Group Plc Bruno Brookes - Chief Executive Officer |
Tel: +44 (0) 1635 556200 |
SPARK Advisory Partners Limited (NOMAD) Mark Brady/Neil Baldwin |
Tel: +44 (0) 203 368 3550 |
Hudson Sandler Catriona Valentine / Alex Clelland |
Tel: +44 (0) 207 796 4133 |
About Immedia Group Plc - www.immediaplc.com
Immedia Group Plc supplies digital audio content solutions, delivered via a scalable audio content streaming platform which enables businesses to stream bespoke live and pre-recorded digital radio channels to internal and external audiences. Each bespoke channel includes interactive functionality and powerful data analytics tools which can be used to improve and fine-tune content to help increase audience engagement.
The SUBWAY® brand
· The SUBWAY® brand is the world's largest submarine sandwich franchise, with more than 44,000 locations in more than 111 countries.
· Headquartered in Milford, Connecticut, the SUBWAY® brand was co-founded by Fred DeLuca and Dr. Peter Buck in 1965. That partnership marked the beginning of a remarkable journey, which has made it possible for thousands of individuals to build and succeed in their own business
· SUBWAY® is a Registered Trademark of Subway IP Inc. ©2016 Subway IP Inc.
