Getmobile reports 73pc hike in first-half revenues
Irish-owned Getmobile Europe, the AIM and IEX-listed German mobile reseller, reported a 73pc increase in first-half revenues to €49.8m, driven by the acquisition of smaller rival KK Media late last year and the company's new focus on accessories sales.
The company's earnings before interest, tax, depreciation and amortisation (EBITDA) was flat at €1.15m as it integrated the new business, invested in building up its accessories business and booked share options charges.
Some €29.5m of Getmobile's revenues in the reporting quarter came from its primary business of selling mobile phone contracts. It gets a commission for selling contracts on behalf of major German mobile phone operators through the internet, print and TV. The number of contracts signed rose 26pc on the previous year to 71,871.
Accessories sales jumped to €20.3m from €7.6m on the year.
"Despite the competitive landscape in our core business, your board believes that the traditionally stronger second half should result in increased profitability for the full year," said Pierce Casey, the company's chairman, who acquired the business in 2005 through a listed cash shell called Fitzwilliam Capital.
"Moreover, we also believe that our strategic initiatives will put it (the company) into a significantly improved strategic position in 2008," Casey said.
Goodbody Stockbrokers analyst, Dan Cavanagh, said the interim figures offer some assurance on Getmobile's performance. "However, the full-year outturn remains dependent on a successful Christmas trading period," said Cavanagh, who has a 'reduce' recommendation on the stock.
Getmobile has had a difficult time in recent years, producing a profit warning in October 2005, just two months after it was acquired, followed by another alert in June 2006.
This resulted in the value of the business being written down to €9.2m in the first half of last year, with the company booking a non-cash goodwill impairment charge of almost €54m.
