8th Apr 2014 08:04
LONDON (Alliance News) - InternetQ PLC expressed optimism for 2014 Tuesday, as pretax profit was boosted by acquisitions and strong performances in both of its divisions in 2013.
The mobile marketing and digital entertainment services company posted a pretax profit of EUR8.7 million in 2013, up from EUR6.0 million in 2012, as revenue rose to EUR104.4 million from EUR73.4 million, bolstered by the company's acquisitions of Atlas Germany GmbH and Interacel Holdings LLC during the year.
The two acquisitions contributed EUR19.3 million in revenue and EUR1.5 million in pretax profit in 2013.
Business-to-business revenues rose 43% to EUR87.7 million from EUR61.5 million, and business-to-consumer revenues increased 40% to EUR16.7 million from EUR11.9 million, driven by growth in the company's Akazoo music streaming platform.
Revenue growth benefited from the buoyant smart phone market, InternetQ said, as devices are increasingly adopted for internet browsing compared to fixed broadband. Particularly in emerging markets, where mobile phones are seen more as the standard to access the internet and make electronic payments.
InternetQ also noted that mobile advertising spend is small compared to the amount of time consumers use their phone, which bolsters expectations for increased mobile advertising spend in the future.
The company continued to invest in its Akazoo and its Minimob mobile marketing platforms during 2013. InternetQ expects to accelerate the growth of Akazoo via planned territory roll outs and device manufacturer partnerships in 2014.
Music streaming services are becoming increasingly popular compared to digital downloads, as new services such as Spotify gain momentum.
InternetQ said it entered 2014 in a stronger position than it had started 2013 in, and its immediate focus is to offset risks and safeguard its interests.
"InternetQ is now ideally placed to capitalise on a number of high-growth market opportunities and we look forward to continuing to create value for our shareholders," said Chief Executive Panagiotis Dimitropoulos.
Shares in InternetQ were trading up 5.3% at 400.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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