Half-year sales and profits rose sharply again at Globo (GBO) as the mobile phone application developer continued to expand into new markets. The company has also continued to reduce its exposure to Greece - 89 per cent of its revenue is now generated outside of Greece, up from 77 per cent a year ago.
In emerging markets, Globo's CitronGO! and GO!Social platforms allow consumers cheaper access to internet services and social media platforms on basic smartphones - revenues there grew 22 per cent year-on-year to €17.9m (£15.2m). Surprisingly, however, it's in developed markets where Globo is seeing the fastest growth. Revenue here from the GO!Enterprise platform increased 132 per cent year-on-year to €10.2m, driven by rising demand from small- and medium-sized businesses to increase mobile security and office connectivity. Moreover, the best from GO!Enterprise still looks set to come as Globo's contract with one of the biggest electronics distributors in the US, Ingram Micro, is helping it to slowly get its product into as many as 14,000 stores across America.
Broker RBC Capital expects full-year pre-tax profit of €30.3m, giving EPS of 8.2¢ (from €17.2 and 5.2¢ in 2012).
GLOBO (GBO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 65p | MARKET VALUE: | £221m | |
| TOUCH: | 64-65p | 12-MONTH HIGH: | 67p | LOW: 19p |
| DIVIDEND YIELD: | nil | PE RATIO: | 11 | |
| NET ASSET VALUE: | 29¢* | NET CASH: | €10.8m | |
| Half-year to 30 Jun | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2012 | 21.1 | 8.33 | 2.60 | nil |
| 2013 | 32.0 | 14.5 | 4.10 | nil |
| % change | +52 | +74 | +58 | - |
*Includes €23.7m of intangible assets, or 7¢ a share £1=€1.18 | ||||
