28 July 2015
For immediate release
INTERNETQ PLC
('InternetQ', the 'Group' or the 'Company')
H1 2015 Trading Update
Solid first half with increased revenue and EBITDA on prior year,
driven by growth in performance-based ad campaigns
InternetQ plc (LSE-AIM: INTQ), a leading provider of mobile marketing and
digital entertainment solutions for mobile network operators and brands,
announces the following trading update for the six months ended 30 June 2015.
Financial update
InternetQ achieved continued growth across all business divisions during the
first half of 2015. Revenue increased to c. €72 million (2014: €65.1 million),
a 10% year-on-year ("YoY") revenue improvement, even when compared to a
particularly strong performance in H1 2014. Revenues were mainly fuelled by
growth at Minimob, displacing the legacy Mobi-Dialogue business which has much
lower margins. Adjusted EBITDA increased by approximately 35%, against the
comparable prior year period, to over €13 million. EBITDA margins increased to
approximately 18% reflecting higher margins in Minimob and maturity of the
Akazoo model.
The Company has a strong pipeline with good visibility for the coming six
months and is on track for even better growth in the historically stronger
second half. The Company remains confident for full year results to be in line
with market expectations.
Operational highlights
B2B - Mobile marketing
* Increased traction for Minimob with new contracts secured with global
brands, including Delivery Hero, a Rocket-Internet food-ordering service;
Lazada, Southeast Asia's number one online shopping and e-commerce
platform; and Bravofly, a flight search engine.
* Over 15,000 new performance-based ad campaigns ran through Minimob.
* Successful mobile marketing campaigns with leading operator Claro in
Paraguay, CellC in South Africa and Zain in Bahrain.
B2C - Digital entertainment
* Process of integrating Akazoo and R&R Music's operations already underway.
* Strong traction and performance of Akazoo in SE Asia with growth rate in
regional subscriber count exceeding 20%.
* Post period end, successfully secured €17 million investment in Akazoo by a
consortium led by Toscafund Asset Management LLP and Penta Capital LLP,
with the addition of R&R Music Ltd into the Group.
Panagiotis Dimitropoulos, Founder and Chief Executive Officer of InternetQ,
said:
"I am pleased to report increased revenue and EBITDA on the prior year across
both the B2B and B2C business divisions. Our investment in improving the
functionality of the Minimob platform is paying off, with significant growth in
app campaigns and the attraction of new global clients.
The first half of 2015 has also been exciting for Akazoo with the closing of
the recent investment led by Toscafund and Penta Capital and the addition of R&
R Music into the Group.
InternetQ is entering the historically busier second half of the year from a
position of greater strength. We see greater momentum in the mobile marketing
business and are set to drive synergies and serve new geographies in the
digital entertainment business. We have a solid pipeline with good visibility
and continue to invest in further growth."
Interim results for the six months ended 30 June 2015 will be announced on 30
September 2015.
ENDS
For further details:
InternetQ T: +44 (0)20 3519 5250 / +30 211 101
1101
Panagiotis Dimitropoulos, CEO and Founder T: +30 697 811 7520
Veronica Nocetti, Chief Financial Officer T: +30 694 420 5275
FTI Consulting LLP
Charles Palmer / Chris Lane / Nicola Krafft / Karen Tang T: +44 (0)20 3727 1000
RBC Capital Markets
Pierre Schreuder / Ema Jakasovic T: +44 (0)20 7653 4000
Canaccord Genuity
Simon Bridges / Emma Gabriel T: +44 (0)20 7523 8000
About InternetQ plc:
InternetQ is a leading digital content and mobile marketing services company
with operations spanning Asia, Europe, Africa and the Americas. It offers
proprietary technology platforms to help mobile network operators, brands, and
media companies to conduct targeted, interactive and measurable marketing
initiatives on mobile devices. Its mobile value added services include Akazoo,
which allows consumers to purchase digital music content and Minimob, its smart
mobile marketing and advertising platform to conduct effective and measurable
campaigns on mobile phones and achieve user engagement and app
monetization. All of InternetQ's products are underpinned by the rapid global
growth in smart devices and the thriving app economy.
InternetQ is a publicly traded company listed on the AIM market of the London
Stock Exchange, under the symbol INTQ. For investor related queries, please
email: ir@internetq.com