INTERNETQ PLC
For immediate release
30 September 2015
INTERNETQ PLC
('InternetQ', the 'Group' or the 'Company')
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2015
InternetQ plc (LSE-AIM: INTQ), a leading provider of mobile marketing and
digital entertainment solutions for mobile network operators and brands,
announces its unaudited interim results for the six months ended 30 June 2015.
Highlights
* Revenue up 10% to €72.1 million (H1 2014: €65.7 million)
+ B2B (mobile marketing) total revenue up 8% to €55.5 million (H1 2014: €
51.5 million) while Minimob smartphone ad-serving revenues increased by
400% to €35 million (H1 2014: €7 million)
+ B2C (digital entertainment) revenue up 16% to €16.5million (H1 2014: €
14.2 million)
* Gross profit up 24% to €17.5 million (H1 2014: €14.1 million) with gross
margin increasing from 21% to 24.3%
* EBITDA (adjusted) up 34% to €13.1 million (H1 2014: €9.8 million)
+ EBITDA margins further improved in both B2B and B2C, supported by
healthy growth in gross margins and operating leverage
* Profit before tax (adjusted) up 24% to €7.4 million (H1 2014: €6 million)
* Profit after tax (adjusted) up 24% to €6.7 million (H1 2014: €5.4 million)
* Earnings per share up 50% to €0.12 (H1 2014: €0.08)
* Earnings per share (adjusted) up 21% to €0.17 (H1 2014: €0.14)
* Cash flow from operations €7.8 million (H1 2014: €8.3 million)
* Cash and cash equivalents up 28% to €15.8 million as at 30 June 2015 (H1
2014: €12.3 million)
B2B - Mobile marketing
* Strong performance in B2B business, fuelled by an increase in Minimob's
direct and performance-based advertising client base
* Continued successful global, direct and agency led brand advertiser
onboarding, including China-based UC Browser, Baidu, BBM, NetDragon,
HotelQuickly, WeChat, Gumtree and Samsung
* Continued shift in Group's focus and investment to high growth, high margin
Minimob platform; away from the legacy and low-margin aggregation business
* Strong growth across Europe, Asia and the Americas, with revenues up 46% in
Latin America to €17.5 million (H1 2014: €12 million)
B2C - Digital entertainment
* Akazoo remains among the very few players in the space delivering positive
EBITDA due to pay-only business model
* Post period c.€17 million (£12 million) cash investment from Penta Capital
and Toscafund to drive new high-profile partnerships and accelerate future
growth
+ Integration of R&R Music proceeding to plan, with consolidation taking
place in H2 2015
+ Expected impact of up to €(3)m in FY2015 EBITDA largely reflecting
integration with Akazoo's business and systems and investment in more
ambitious growth plans of the combined entity
Outlook
* On track to achieve FY2015 market expectations ex-acquisitions (R&R Music),
with revenue anticipated to show a second half seasonal weighting
Commenting on the results, Panagiotis Dimitropoulos, Founder and Chief
Executive Officer of InternetQ said:
"We are rapidly gaining market share in this fast-moving app-related
advertising space, which industry analysts predict will triple in size in the
coming three years. The landmark release of self-service features on our
Minimob platform, along with ongoing platform upgrades and our truly global
reach, will allow us to further capitalise on the app economy's growth
trajectory, free from the challenges display advertising is facing and that
plague some of the generalist competitors.
"At the same time, in July, our Akazoo business received significant external
funding and a private equity stamp of approval that will accelerate its growth,
enhance its leading position in underserved geographies, attract new commercial
partners and soon claim a commensurate valuation to those of the two industry
leaders.
"InternetQ is committed to its vision to lead and grow in the fast-paced
technology space by seizing the opportunities ahead."
Panagiotis Dimitropoulos and Veronica Nocetti, Chief Executive Officer and
Chief Financial Officer at InternetQ, along with Apostolos Zervos, Chief
Executive Officer of the recently enlarged Akazoo business, will host a
conference call for analysts and investors to discuss the results, commencing
at 8.30 am BST on Wednesday 30 September 2015.
Dial in details are as follows:
Conference ID: 45668697
United Kingdom: 08002798756
International Dial-in: +44 (0) 145 2322581
An audio webcast will also be available through the URL link http://
wcc.webeventservices.com/r.htm?e=1057506&s=1&k=E480464D546B8C6320573453A0B7C9C0
Change in registered UK address:
InternetQ PLC's registered address in the UK has moved from St. Botolph
Building, 138 Houndsditch, London EC3A 7AR to 8 Clifford Street, London W1S
2LQ.
For further details:
InternetQ
Tel: +44 (0) 20 3519 5250
Panagiotis Dimitropoulos, CEO and Founder Tel:
+30 (697) 811 7520
Veronica Nocetti, Chief Financial Officer
Tel: +30 (694) 420 5275
FTI Consulting LLP
Charles Palmer / Chris Lane / Nicola Krafft / Karen Tang Tel: +44
(0)20 3727 1000
RBC Capital Markets
Pierre Schreuder / Ema Jakasovic
Tel: +44 (0)20 7653 4000
Canaccord Genuity
Simon Bridges / Emma Gabriel
Tel: +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
ENDS
Chief Executive Officer's Review
I am pleased to report this solid set of results for the first half of 2015,
with double-digit revenue growth and a strong EBITDA performance.
The investment of over €25m to-date in the Minimob platform is paying off,
delivering high growth, high margin revenues and positioning us as leaders in
the very exciting app-related advertising market. Our proprietary bespoke
platform differentiates us from emerging competitors and is a major USP for our
mobile advertising sales efforts and client wins.
We can now confidently say that across our platform suite we possess solid
technological foundations and marketing/sales personnel and expertise to
rapidly increase our market share in highly attractive, carefully chosen market
segments. Our recent decision to reduce investment and subsequent focus in
lower priority areas is a testament to our proven ability to navigate industry
trends and take action when and where necessary, so as to deliver sustainable
high growth and cash flow to our shareholders for the years to come.
B2B - Mobile marketing
The Group's B2B division has performed strongly in the first six months of the
current financial year. The managed transition away from the legacy,
lower-margin aggregation business is now well progressed and InternetQ is
benefitting from its focus on the high growth, high margin Minimob platform.
Growth has been fuelled by an increase in Minimob's direct advertising revenue
and the continued expansion of the performance-based advertising client base.
During the period, the Group has successfully deployed Minimob with China-based
global advertisers, including UC Browser and Baidu, direct advertisers,
including BBM, NetDragon and HotelQuickly and agency-led brand advertisers,
including WeChat, Gumtree and Samsung. Minimob's smartphone ad-serving
revenues have also grown strongly, increasing from €7 million in H1 2014 to €35
million for the current half. Continued progress has been achieved in
developing mobile marketing partnerships with MNOs in several geographies, with
Latin America delivering a 46% increase in total revenue to €17.5 million (H1
2014: €12 million).
B2C - Digital entertainment
The Group's B2C division has continued to grow strongly. Akazoo, the Group's
popular subscription-based music streaming service, has produced positive
EBITDA and, with its pay-only business model, is highly differentiated in the
marketplace. Post period end, the Group successfully completed a strategic
investment into Akazoo by a consortium led by Toscafund Asset Management LLP
and Penta Capital LLP, consisting of a c. €17 million (£12 million) cash
investment into the UK registered entity that will hold the Akazoo business,
operations and platform. At the same time, shareholders of R&R Music Ltd, a
London-based IP/patent-powered music recommendation and user profiling
technology company, have agreed to contribute their business to the new Akazoo
group. The cash investment will be used to grow Akazoo's operations and
footprint and expand the new entity's proposition across new verticals through
continued development of the Akazoo platform and R&R Music's technologies.
Based on the subscription terms of the new investment, the implied post-money
valuation of the enlarged Akazoo business (including R&R Music) as at 9 July
2015 was approximately €104 million, with InternetQ holding c. 69.1% of the
shares, while Tosca Penta Music and R&R Music's founders and existing investors
hold the remaining shares.
With this investment completed, Akazoo is now cash self-sufficient. The
integration of R&R Music is proceeding to plan with the restructuring of the
enlarged business across Europe well progressed and expected to be completed in
the second half of this financial year. The Group anticipates an impact of up
to €(3) million in FY2015 EBITDA, largely reflecting the integration of the
Akazoo business and investment to deliver the growth plans of the combined
entity.
Outlook
We have made a solid start to 2015 and continue to see further growth
opportunities in the fast moving mobile marketing and music streaming sectors.
Our B2B division is well placed to directly benefit from the global shift in
mobile advertising towards app-related campaigns, expected to be worth c. US$30
billion in 2015, and due to further triple in the next three years,
contributing over 70% of the total mobile ad spend growth globally. Minimob's
growth potential will be further enhanced by the introduction of new
programmatic campaigns, self-service campaign planning and an increase in
proprietary data which will drive optimisation going forward.
The €17 million cash investment into Akazoo by a Toscafund Asset Management LLP
and Penta Capital LLP led consortium, outside the period end, will enable the
B2C business to further develop its platform and R&R Music's technologies,
accelerating its growth across new verticals. This will be further supported by
the market shift away from freemium models towards pay-only music streaming
services, opening up new markets for growth.
For the full year, the Board remains confident of meeting market expectations,
prior to the impact of the R&R Music acquisition, with a strong strategy and
offering in place to continue to drive its expansion. It is anticipated that
revenue will show a second half seasonal weighting in line with that seen in
prior years.
Financial review
Group revenues increased by 10% in the first half of 2015 to €72.1 million (H1
2014: €65.7 million), with both segments delivering robust sales growth.
Revenues from B2B activities grew by 8% to €55.5 million (H1 2014: €51.5
million) and revenues from B2C grew by 16% to €16.5 million (H1 2014: €14.2
million). InternetQ's revenues continue to be spread across a broad range of
growth markets - 34.3% from Europe, 32% from Asia, 24% from the Americas, 9.4%
from the Middle East & Africa. Operations continue to be managed and
coordinated from existing locations.
Adjusted EBITDA (after adjustment for share based payments and acquisition
costs amounting to €0.8 million) grew by 34% to €13.1 million (H1 2014: €9.8
million), a margin of 18% (H1 2014: 15%). Profit after tax for the half year
increased to €6.7 million compared to €5.4 million for H1 2014, despite the
increasing amortisation of intangibles and a one-off, unrealised currency
movement on intercompany balances between the UK holding company and Euro
denominated subsidiaries. As in previous periods, these gains and losses are
unlikely to be realised but led to a non-cash P&L adjustment.
Investment in the Akazoo, Minimob platforms and related applications resulted
in capital expenditure for the half year ended 30 June 2015 of €5.6 million, a
decrease from the previous year (H1 2014: €7.1 million). A slightly larger
amount will be invested in the second half and cash will continue to improve.
Cash from operations was €7.8 million, reflecting the strong underlying
financial performance. Investing activities comprised €5.6 million in software
development and €3.6 million in deferred payments related to the previous
year's acquisitions. During the period, the Group signed a €15 million credit
facility with Barclays in order to finance working capital needs and bought
198,023 shares of its own Ordinary Shares for a total of €0.8 million which are
held in treasury. The Group ended the first half of the year with €2.8 million
net debt after acquisitions, which consisted of €15.7 million (H1 2014: €12.3
million) cash and €18.5 million of bank debt (H1 2014: €12.1 million).
Unaudited Consolidated Income Statement for the period ended 30 June 2015
(Amounts in Euro, except share information, per share data and unless otherwise
stated)
Group
Notes Period Period
ended ended
30 June 2015 30 June 2014
Revenues 2 72,049,747 65,712,940
Direct cost of revenues (54,493,156) (51,639,034)
Gross profit 17,556,591 14,073,906
Other operating income 349,088 110,400
Operating expenses (5,564,551) (5,703,402)
Other operating expenses (21,605) (37,746)
Depreciation and amortisation (5,086,609) (4,001,571)
Operating profit 7,232,914 4,441,587
Finance costs 3 (3,239,604) (1,216,416)
Finance income 3 1,272,910 251,713
Profit before income 5,266,220 3,476,884
tax
Income tax (350,780) (255,868)
Profit after income tax 4,915,440 3,221,016
Attributable to:
Owners of the parent 4,915,440 3,221,016
Earnings per share basic 4 0.12 0.08
Earnings per share diluted 4 0.12 0.08
Adjusted results: 1,784,556 2,193,172
Adjusted profit after income tax 1 6,699,996 5,414,188
Adjusted earnings per share basic 4 0.17 0.14
Adjusted earnings per share diluted 4 0.17 0.14
The accompanying notes are an integral part of the interim financial
statements.
All results are derived from continuing operations.
Unaudited Consolidated Statement of Comprehensive Income for the period ended
30 June 2015
(Amounts in Euro, except share information, per share data and unless otherwise
stated)
Group
Period Period
ended ended
30 June 2015 30 June 2014
Profit / (loss) for the period 4,915,440 3,221,016
Other comprehensive income
Exchange differences on translation of foreign operations 81,642 687,008
Other comprehensive income/(loss) 81,642 687,008
for the period
Total comprehensive income/(loss) for the period 4,997,082 3,908,024
Attributable to:
Equity holders of the parent 4,997,082 3,908,024
The accompanying notes are an integral part of the interim financial
statements.
Unaudited Consolidated Statement of Financial Position as at 30 June 2015
(Amounts in Euro, except share information, per share data and unless otherwise
stated)
Group
30 June 31 December
2015 2014
Assets
Non-current assets
Property, plant and equipment 1,760,819 2,006,772
Investment properties 442,500 442,500
Goodwill 19,422,360 19,422,360
Intangible assets 51,726,684 51,377,318
Non-current financial 2,712,102 2,847,769
assets
Other non-current assets 518,140 582,913
Deferred tax assets 313,584 240,673
Total non-current assets 76,896,189 76,920,305
Current assets
Trade receivables 46,610,181 37,802,307
Other receivables 10,567,571 10,949,384
Current financial assets 114,492 114,521
Cash and cash equivalents 15,174,186 11,585,860
Restricted cash 615,495 755,209
Total current assets 73,081,925 61,207,281
Total assets 149,978,114 138,127,586
Equity and liabilities
Equity attributable to equity holders of the parent
company
Share capital 121,313 120,323
Share premium 51,878,056 50,590,884
Treasury shares (827,144) (13,276)
Other components of equity 11,529,756 15,613,892
Other capital reserves (204,199) (106,699)
Exchange differences 1,533,370 1,451,728
Retained earnings 33,219,592 28,304,152
Total equity 97,250,744 95,961,004
Non-current liabilities
Long-term loans 4,016,800 4,525,100
Provisions 13,021 94,688
Other non-current 113,678 104,112
liabilities
Deferred tax liabilities 5,952,223 5,731,449
Total non-current 10,095,722 10,455,349
liabilities
Current liabilities
Trade payables 21,516,891 20,600,124
Short-term loans 13,307,321 6,203,929
Current portion of long term loans 1,266,600 1,391,600
Income tax payable 1,078,769 987,321
Other liabilities 5,462,067 2,528,259
Total current liabilities 42,631,648 31,711,233
Total 52,727,370 42,166,582
liabilities
Total equity and 149,978,114 138,127,586
liabilities
The accompanying notes are an integral part of the interim financial
statements.
Unaudited Consolidated Statement of Changes in Equity for the period ended 30
June 2015
(Amounts in Euro, except share information, per share data and unless otherwise
stated)
Group Share Share Treasury Other Other Exchange Retained Total
capital premium shares components capital differences earnings
of equity reserves
Balance at 1 117,553 47,500,518 - 14,558,856 154,712 (34,743) 19,629,955 81,926,851
January 2014
Profit after - - - - - - 8,674,197 8,674,197
income tax
Other comprehensive - - - - (24,566) 1,486,471 - 1,461,905
income/(loss)
Total - - - - (24,566) 1,486,471 8,674,197 10,136,102
comprehensive
income
Share capital 2,770 3,090,366 (13,276) - - - - 3,079,860
increase
Employees' share - - - 877,708 - - - 877,708
incentive plans
Non-executive directors share - - - (11,050) - - - (11,050)
based payments
Contingent - - - 188,378 (236,845) - - (48,467)
considerations
Balance at 31 120,323 50,590,884 (13,276) 15,613,892 (106,699) 1,451,728 28,304,152 95,961,004
December 2014
Profit after - - - - - - 4,915,440 4,915,440
income tax
Other comprehensive - - - - - 81,642 - 81,642
income/(loss)
Total - - - - - 81,642 4,915,440 4,997,082
comprehensive
income
Share capital 990 1,287,172 (813,868) - - - - 474,294
increase
Employees' share - - - (590,798) - - - (590,798)
incentive plans
Contingent - - - (3,493,338) (97,500) - - (3,590,838)
considerations
Balance at 30 121,313 51,878,056 (827,144) 11,529,756 (204,199) 1,533,370 33,219,592 97,250,744
June 2015
The accompanying notes are an integral part of the interim financial
statements.
Unaudited Consolidated Cash Flow Statement for the period ended 30 June 2015
(Amounts in Euro, except share information, per share data and unless otherwise
stated)
Group
Period Period
ended ended
30 June 2015 30 June 2014
Cash flows from operating activities
Profit before income tax 5,266,220 3,476,884
Adjustments for:
Depreciation and amortisation 5,086,609 4,001,571
Increase in other provisions 11 -
Provision for employee benefits liability 15,962 10,098
Allowance for doubtful trade and other 26,602 -
receivables
Amortisation of investment grants (163,659) (27,290)
Employees' share incentive plan expense 651,921 942,417
Non-executive directors' share-based 45,948 53,840
payments
Losses /(gains) on disposal of property (500) 15,695
plant, and equipment
Finance income (85,809) (62,260)
Finance costs 1,046,622 382,172
Net cash before working capital changes 11,889,927 8,793,127
Movement in working capital:
Trade receivables (8,811,976) (9,080,537)
Other receivables 339,327 5,172,712
Restricted cash 139,714 (168,524)
Other non-current assets 64,773 355,593
Trade payables 1,752,936 4,692,141
Other liabilities 2,587,125 (1,275,000)
Other non-current liabilities 1,892 (1,714)
Income taxes paid (91,217) (153,286)
Liabilities arising from other provisions (81,678) -
paid
Employee benefits liabilities paid (8,288) (7,598)
Net cash from operating activities 7,782,535 8,326,914
Cash flows from investing activities
Payments for property, plant and equipment (302,057) (338,202)
Proceeds from disposals of property, plant 499 27,792
and equipment
Payments for intangible assets (5,628,764) (7,150,862)
Acquisition of subsidiaries (net of cash (3,686,209) (2,969,031)
acquired)
Proceeds from investment grants 163,659 127,290
Finance income received 217,781 35,991
Net cash used in investing activities (9,235,091) (10,267,022)
Cash flows from financing activities
Payments for treasury shares (813,868) -
Proceeds from long-term borrowings - 60,000
Payments of long-term borrowings (633,300) (125,000)
Proceeds from short-term borrowings 10,000,001 383,009
Payment of short-term borrowings (2,896,608) -
Finance costs paid (699,940) (437,851)
Net cash from financing activities 4,956,285 (119,842)
Effect of exchange rates' changes on flows 84,597 687,008
and cash
Net increase / (decrease) in cash and cash 3,588,326 (1,372,942)
equivalents
Cash and cash equivalents at beginning of 11,585,860 12,695,021
year
Cash and cash equivalents at end of the 15,174,186 11,322,079
period
The accompanying notes are an integral part of the interim financial
statements.
Notes to the unaudited Interim Consolidated financial Statements
(Amounts in Euro except share information, per share data and unless otherwise
stated)
1. EBITDA and adjusted results
The table below presents a reconciliation of profit after income tax to EBITDA:
Group
Period Period
ended ended
30 June 2015 30 June 2014
Profit after income tax 4,915,440 3,221,016
Income tax 350,780 255,868
Finance costs 3,239,604 1,216,416
Finance income (1,272,910) (251,713)
Depreciation and amortisation 5,086,609 4,001,571
EBITDA 12,319,523 8,443,158
Adjusted results, which are non-GAAP financial measures, are presented in order
to improve investors' understanding of financial results and improve
comparability of financial information from period to period. The table below
presents the adjusted amounts to the Group's financial results for the period
ended 30 June 2015 and 2014:
Group
Period Period
ended ended
30 June 2015 30 June 2014
Employees' share incentive plan expense 651,921 942,418
Non-executive directors' share-based payments 45,948 53,840
Acquisition costs from business combinations 95,371 313,869
Adjustments to EBITDA 793,240 1,310,127
Amortisation of assets identified in business combinations 1,383,638 1,229,947
Adjustments to operating 2,176,878 2,540,074
profit
Deferred tax income on amortisation of the assets identified (392,322) (346,902)
in business combinations
Adjustments to profit after income tax 1,784,556 2,193,172
Reconciliation of the adjusted results for the period ended 30 June 2015 and
2014:
Period ended 30 June 2015
Income Adjustments Adjusted
Statement results
EBITDA 12,319,523 793,240 13,112,763
Operating profit 7,232,914 2,176,878 9,409,792
Profit 4,915,440 1,784,556 6,699,996
after tax
Period ended 30 June 2014
Income Adjustments Adjusted
Statement results
EBITDA 8,443,158 1,310,127 9,753,285
Operating profit 4,441,587 2,540,074 6,981,661
Profit 3,221,016 2,193,172 5,414,188
after tax
1. Operating segment information
For management purposes the Group is separated into business units based on its
customer types. Consequently, the Group has two reportable operating segments
as follows:
* Business to Business (B2B) segment: B2B revenues are those that arise from
the marketing of InternetQ's products to other organisations. It allows the
Group to sell its products or services to other companies or organisations
that resell them, use them in their products or services or use them to
support their operations.
* Business to Consumer (B2C) segment: B2C revenues are those resulting from
marketing of InternetQ's products directly to consumers as the Group's
target market.
Management monitors the operating results of its segments separately for the
purpose of making decisions about resource allocation and performance
assessment. Segment performance is evaluated based on operating profit or loss
(minus any costs that are not allocated to segments).
Transfer prices between operating segments are on an arm's length basis in a
manner similar to transactions with third parties. Segment income, expenses and
results will include those transfers between business segments which are
eliminated on consolidation.
The following table represents revenue and profit information regarding the
Group's operating segments for the period ended 30 June 2015:
B2B B2C Consolidated
Revenues 55,540,074 16,509,673 72,049,747
Segment EBITDA 11,428,586 890,937 12,319,523
Depreciation and amortisation (3,258,382) (1,828,227) (5,086,609)
Segment operating profit / 8,170,204 (937,290) 7,232,914
(loss)
Adjustments (Note 1) 533,652 259,588 793,240
Adjusted segment EBITDA 11,962,238 1,150,525 13,112,763
Adjustments (Note 1) 1,461,850 715,028 2,176,878
Adjusted segment operating profit/ 9,632,054 (222,262) 9,409,792
(loss)
The following table represents revenue and profit information regarding the
Group's operating segments for the period ended 30 June 2014:
B2B B2C Consolidated
Revenues 51,494,968 14,217,972 65,712,940
Segment EBITDA 8,809,286 (366,128) 8,443,158
Depreciation and amortisation (2,520,322) (1,481,249) (4,001,571)
Segment operating profit / 6,288,964 (1,847,377) 4,441,587
(loss)
Adjustments (Note 1) 909,352 400,775 1,310,127
Adjusted segment EBITDA 9,718,638 34,647 9,753,285
Adjustments (Note 1) 1,790,156 749,918 2,540,074
Adjusted segment operating profit/ 8,079,120 (1,097,459) 6,981,661
(loss)
Finance income, finance costs and income taxes are not allocated to individual
segments as the underlying instruments are managed on an overall Group basis.
A reconciliation between segment profit and corresponding amounts in the
Group's income statements for the period ended 30 June 2015 and 2014 is
presented below:
Group
Period Period
ended ended
30 June 2015 30 June 2014
Segment operating profit 7,232,914 4,441,587
Finance costs (3,239,604) (1,216,416)
Finance income 1,272,910 251,713
Income taxes (350,780) (255,868)
Profit after tax 4,915,440 3,221,016
Geographic information:
Group
Period Period
ended ended
30 June 2015 30 June 2014
Europe 24,741,013 22,371,253
Latin America 17,540,725 11,998,467
Middle East and Africa 6,833,163 10,224,584
Asia 22,934,846 21,118,636
Total Revenues 72,049,747 65,712,940
1. Finance income / (costs)
Finance income / (costs) in the accompanying interim financial statements are
analysed as follows:
Group
Period Period
ended ended
30 June 2015 30 June 2014
Interest on short-term (160,607) (52,766)
borrowings
Interest on long-term borrowings (156,820) (176,880)
Exchange differences (2,192,982) (834,244)
Other finance costs (729,195) (152,526)
Total finance costs (3,239,604) (1,216,416)
Interest earned 85,809 62,260
Exchange differences 1,187,101 189,453
Total finance income 1,272,910 251,713
Total finance income/ (costs) net (1,966,694) (964,703)
Losses on exchange differences of €513,938 (30 June 2014: losses €499,222)
represent the unrealised foreign exchange losses on intercompany loans between
InternetQ Plc (UK holding company) and the various subsidiaries.
1. Earnings / (loss) per share
Basic earnings per share amounts are calculated by dividing net profit/ (loss)
for the reporting period attributable to ordinary equity holders of the parent
by the weighted average number of ordinary shares outstanding during the
respective period.
Diluted earnings per share amounts are calculated by dividing the net profit
attributable to ordinary equity holders of the parent by the weighted average
number of ordinary shares outstanding during the year plus the weighted average
number of ordinary shares that would be issued on conversion of all the
dilutive potential ordinary shares into ordinary shares.
The following reflects the income and share data used in the basic and diluted
earnings per share computations:
Group
Period Period ended
ended 30
30 June June 2014
2015
Net profit attributable to ordinary equity holders of 4,915,440 3,221,016
the parent
from continuous operations
Weighted average number of ordinary shares for basic 39,868,240 39,290,395
earnings per share
Earnings per share basic 0.12 0.08
Adjusted earnings per share basic 0.17 0.14
Weighted average number of ordinary shares for basic 39,868,240 39,290,395
earnings per share
Effect on dilution:
Deferred consideration shares - 80,103
Share incentive plan to Employees 438,631 586,697
438,631 666,800
Weighted average number of ordinary shares adjusted for 40,306,871 39,957,195
the effect of dilution
Earnings per share diluted 0.12 0.08
Adjusted earnings per share diluted 0.17 0.14
A reconciliation of the adjusted earnings per share basic and adjusted earnings
per share diluted for the period ended 30 June 2015 and 2014 is presented
below:
Adjusted earnings per share Group
basic:
Period Period
ended ended
30 June 30 June
2015 2014
Adjusted profit 6,699,996 5,414,188
after tax
Weighted average number of ordinary shares for basic 39,868,240 39,290,395
earnings per share
Earnings per share basic 0.17 0.14
adjusted
Adjusted earnings per share Group
diluted:
Period Period
ended ended
30 June 30 June
2015 2014
Adjusted profit 6,699,996 5,414,188
after tax
Weighted average number of ordinary shares for basic 40,306,871 39,957,195
earnings per share
Earnings per share diluted 0.17 0.14
adjusted
1. Events after the reporting period
On July 2015 R&R Music Ltd ("R&R Music"), the London-based IP/patent-powered
music recommendation and user profiling Technology Company, invested €17
million (£12 million) and contributed their business to acquire 31,9% of the
Akazoo business, operations and platform. The enlarged business, headquartered
in London, UK, provides significant new cash resources, IP, human capital,
operational and technological synergies and other related assets to further
build on the strong momentum of InternetQ's B2C services. Similarly, the
structural separation of Akazoo aims to improve focus on InternetQ's respective
business lines, while maintaining control of both.
InternetQ : Interim Results
September 30, 2015 at 02:01 am EDT
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© PRNewswire - 2015
