Shares in InternetQ (INTQ) slumped 8 per cent after the mobile marketing and music streaming group revealed higher costs than expected last year. Operating expenses soared 37 per cent due to integration and expansion costs, including a €2.6m amortisation charge on acquisitions (2013: €0.8m). Stripping this and other irregular items out, adjusted operating profit rose 35 per cent to €15.9m (£11.5m).
Mounting demand for InternetQ's mobile advertising platform, Minimob, sent the unit's adjusted cash profits up 43 per cent to €20.5m. That reflected a raft of international contract and client wins as well as the launch of new tools that allow app developers to better target and measure the impact of their advertising campaigns. InternetQ also acquired Up Mobile, a Mexico-based mobile marketer and content provider, strengthening its foothold in the mushrooming Latin America market.
Enthusiastic adoption of streaming-music platform Akazoo sent sales to consumers up 71 per cent to €28.5m. InternetQ introduced new features such as integrated messaging and personalised radio streaming and music recommendations. It also inked contracts with Orange in Poland and Sony Mobile in Malaysia, and secured a global partnership with Blackberry Messenger.
Meanwhile, management blame geopolitical tensions for the 43 per cent slump in sales in the Middle East and Africa.
Broker Canaccord Genuity hiked its EPS forecast by 3 per cent to 42.8¢ (2014: 32¢).
| INTERNETQ (INTQ) | ||||
|---|---|---|---|---|
| ORD PRICE: | 330p | MARKET VALUE: | £ 131m | |
| TOUCH: | 325-335p | 12-MONTH HIGH: | 400p | LOW: 215p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 21 | |
| NET ASSET VALUE: | 241¢* | NET CASH: | €0.2m** | |
| Year to 31 Dec | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2010† | 37 | 3.0 | na | na |
| 2011 | 50 | 3.3 | 8 | nil |
| 2012 | 73 | 6.9 | 18 | nil |
| 2013 | 104 | 9.0 | 24 | nil |
| 2014 | 132 | 9.3 | 22 | nil |
| % change | +27 | +3 | -8 | - |
*Includes intangible assets of €70.8m, or 178¢ **Includes restricted cash of €0.8m †InternetQ floated in December 2010 £1 = €1.38 | ||||
