Globalisation and the spread of smartphones and tablets have created dispersed workforces in dire need of mobile security and connectivity. Those trends have spurred demand for Globo 's (GBO) enterprise mobility software, helping the Greek group record a 23 per cent increase in first-half cash profits.
Globo has set its gaze on the enterprise space, which offers shorter payment cycles and steadier licensing revenues than its legacy consumer market. Sales of its GO!Enterprise solutions nearly doubled to €20m (£15.7m), as the number of licences issued for its enterprise-mobility software and mobile app development platform rose 67 and 90 per cent, respectively, in just six months. Globo also acquired mobile app developer Sourcebits, netting blue-chip clients Intel (US: INTC) and SAP (Ger: SAP) in the process.
Sales from south-eastern and eastern Europe - Globo's core market - rose by nearly three quarters to €16m. But the group also made international gains, with revenues from western Europe and North America surging roughly six-fold to about €3m and €2m, respectively.
Globo worked hard for those gains, doubling its investments in product development and infrastructure to about €13m. Nevertheless, it posted €4.2m in free cash flow, allaying investors' concerns over last year's €3.7m outflow.
Analysts at RBC Capital Markets expect full-year pre-tax profits of €34m, giving EPS of 8.2¢, surging to €51m and 11.9¢ in 2015 (2013: €27.4m and 7.4¢).
| GLOBO (GBO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 43p | MARKET VALUE: | £160m | |
| TOUCH: | 42-43p | 12-MONTH HIGH: | 88p | LOW: 40p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 7 | |
| NET ASSET VALUE: | 42¢* | NET CASH: | €46m | |
| Half-year to 30 Jun | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 32.0 | 14.5 | 4.1 | nil |
| 2014 | 46.5 | 16.1 | 4.3 | nil |
| % change | +45 | +11 | +5 | - |
*Includes intangible assets of €48.9m, or 13¢ a share £1=€1.28 | ||||
