InternetQ (INTQ) only floated on Aim in December 2010, but the mobile marketing and digital entertainment specialist is making significant progress - operating profit rose 77 per cent in 2012 to €7.1m (£6.1m). Growth was particularly strong in Asia, where revenue more than trebled and now generates 36 per cent of group revenue - up from 17 per cent in 2011.
The group operates through two software platforms that deliver marketing and content services to mobile subscribers of around 150 carriers worldwide. MobiDialog, its mobile marketing platform, grew revenue 40 per cent to €57.5m, while Akazoo, which operates an on-demand streaming music service, saw revenue jump 90 per cent to €11.4m. Akazoo increased its coverage from eight countries to 22 and added 1.4m subscribers, of which 200,000 pay for premium subscription services at an average monthly revenue rate per subscriber of €1.83.
A big challenge, though, is matching the pace of technological development and, since the year-end, InternetQ has launched Minimob - a value-added push notification platform that enables app developers to quickly set up promotional campaigns. Crucially, MiniMob.com is the only free service to offer unlimited messaging to an infinite number of app end-users, with no third-party advertisements.
RBC Capital Markets expects 2013 adjusted EPS of 25.77¢ (23.16¢ in 2012).
INTERNETQ (INTQ) | ||||
|---|---|---|---|---|
| ORD PRICE: | 298p | MARKET VALUE: | £104m | |
| TOUCH: | 297-299p | 12-MONTH HIGH: | 300p | LOW: 168p |
| DIVIDEND YIELD: | nil | PE RATIO: | 19 | |
| NET ASSET VALUE: | 135¢* | NET CASH: | €7.1m† | |
| Year to 31 Dec | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2009 | 17.2 | -1.09 | ** | nil |
| 2010 | 37.3 | 3.04 | ** | nil |
| 2011 | 50.1 | 3.26 | 8.00 | nil |
| 2012 | 73.4 | 6.90 | 18.0 | nil |
| % change | +47 | +112 | +125 | - |
Payment: - *Includes intangible assets of €14.4m, or 41¢ a share †Includes €0.63m of restricted cash **Prior to flotation £1=€1.17 | ||||
