10 November 2014 For immediate release
INTERNETQ PLC
('InternetQ', the 'Group' or the 'Company')
Q1-Q3 2014 Trading Update
Strong growth achieved in bothmobile marketing and digital entertainment
InternetQ plc (LSE-AIM: INTQ), a leading provider of mobile marketing and
digital entertainment solutions for mobile network operators, app developers
and brands, announces significant commercial progress during the period ended
30 September 2014 which underpins the Group's confidence in confirming that the
full year will be in line with current market expectations.
Financial highlights
* Revenue up 20% to €88.2 million (Q1-Q3 2013: €73.5 million)
* B2B revenue up 11% to €68.3million (Q1-Q3 2013: €61.8 million), with mobile
marketing performing 17% above expectations
* B2C revenue up 70% to €19.9million (Q1-Q3 2013: €11.7 million)
* EBITDA (adjusted) up 49% to €13.5 million (Q1-Q3 2013: €9.1 million)
* Profit before tax (adjusted) up 26% to €7.6 million (Q1-Q3 2013: €6.0
million).
B2B (Mobile Marketing): strong momentum continues both within the business and
in the broader market. Increased integration with mobile advertising networks,
new client wins and contract extensions are driving revenue growth and
profitability.
As a platform, Minimob links the traditional digital media world and the device
centric market; the latest version is more advanced than its competition and
fully maximizes its financial potential. Innovation remains a core focus. The
new Minimob service that provides additional targeting capabilities opens up
new sources of incremental advertising revenues. Automation continues to drive
higher volumes on the supply and demand side which the highly scalable platform
is well placed to cope with. The latest Minimob SDK version introduces
proprietary features that open up new business opportunities through highly
efficient application cross selling. Minimob loyalty campaigns reduce customers
churn, resulting in increased volumes of active inventory to be exploited
commercially.
These developments are driving an engaged developer and ad network community:
* More than 300 million unique Minimob SDK installations (Sep 2014)
* More than 3600 active application developers
* More than 33% increase in the average revenue per active SDK since August
* 23 more advertising networks are now integrated with the Minimob platform,
now totaling 105, further increasing the demand and offers for multiple ad
campaigns and enabling InternetQ to more effectively monetize its offering
by generating more installs for advertisers.
* New performance based advertising campaigns for brands, agencies and
operators, running through the Minimob platform in Q3 totaled over 2,200;
representing a 34% increase compared to H1 2014.
New Client Wins & Contract Extensions
* Partnership agreement signed with Movistar, the major carrier owned by
Telefónica and operating in Spain and several Latin American countries.
* Mobile marketing campaign launched with Viva, a leading carrier in the
Dominican Republic and a member of the Trilogy International Partners.
* New contract signed with SportingBet for the promotion of their application
in multiple countries.
* Extension of mobile marketing campaign with Tigo Honduras, the leading
mobile service provider in the country, following the successful completion
of several campaigns earlier in the year.
* Extension of campaigns with CellC, the second biggest carrier in South
Africa serving over 14 million subscribers, for the third year in a row.
B2C (Digital Entertainment): Deals with Mobile Network Operators drive
international expansion
* Launch of co-branded add-on service offering with MTN Cyprus, part of the
MTN Group, a multinational mobile telecommunications provider, to its
entire subscriber base.
* Following the successful launch of the add-on service in Q2 2014, Orange
Poland signed a hard bundle agreement with Akazoo across two tariffs.
* Robust pipeline with leading MNOs, ISPs and device manufacturers in
Indonesia, Singapore and other markets.
* Akazoo continues to deliver Industry leading conversion rates for free to
premium.
* New features and functions, including automated radio streaming and
personalised music recommendations, on track for launch by the end of 2014.
Panagiotis Dimitropoulos, Founder and Chief Executive Officer of InternetQ said
:
"The mobile marketing and digital entertainment markets are going through a
massive and exciting period of change. InternetQ is very well positioned to
capture this potential and continues to deliver against its stated growth
strategy of broadening its geographical reach whilst further strengthening its
service offering. We have achieved strong growth in both our mobile marketing
and digital entertainment divisions and this is driving revenue growth and
profitability.
Our pipeline remains strong and we are confident that results for the full year
will be in line with current market expectations."
InternetQ will hold a Capital Markets Day on 11 November 2014.
ENDS
For further details:
InternetQ Tel: +44 (0) 20 3519 5250 / +30 (211) 101 1101
Panagiotis Dimitropoulos, Founder and CEO Tel: +30 (697) 811 7520
Veronica Nocetti, Chief Financial Officer Tel: +30 (694) 420 5275
FTI Consulting LLP
Charles Palmer / Chris Lane / Karen Tang Tel: +44 (0)20 3727 1000
RBC Capital Markets
Pierre Schreuder 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