||EPS - Basic
||Market Cap (m)
Real-Time news about Infoserve (London Stock Exchange): 0 recent articles
|wrongfred: I think the decision to suspend the shares is a curious one under the circumstances. It feels like it was more of a stunt to attract some attention, rather than it being genuinely about protecting the share price while the deal was done. The deal was not contigent on the share price, and no news had leaked out beforehand.
The company is presenting this as a major new contract, but is it? I would suggest they gave no financial details because there are none to give. Looking up 'Google Adwords Authorized Reseller' suggests that such deals involve no payment from Google - it's merely a marketing agreement where the reseller does all the work and charges an additional cost above the Google charge. It's a no lose deal for Google, but what will the reseller have to charge to cover their overheads? A brief Internet search seems to confirm that being an 'authorized reseller' isn't necessarily attractive.
How Google Squeezes SEMs and AdWords Buyers
The RNS that a great deal of initial work is required on each contract, followed by ongoing reporting overheads. Yet once the product awareness is done, at some point these SMEs might well realise that they can advertise directly with Google, without the additional charge of the middle-men, which sounds like it could be significant. I wonder if basically being little more than telemarketers for Google and Yahoo is really a sustainably profitable business model?|
|leeson03: Cracking little company bags of potential .... The Spread is a bit of a bummer. I have used their website and it's not bad at all. Anyway for more information on the Yahoo deal look below ...
Company wins deal with search specialist
IT company Infoserve has clinched a deal with leading internet search station Yahoo! which could see at least a six-fold increase in the North-East company's turnover and bring hundreds of jobs to the region.
The Darlington firm announced yesterday it had won the exclusive rights to provide Yahoo! with search facilities in the UK, in a deal that will "change the scale of Infoserve's operation".
Infoserve - a hybrid of a local search engine and online business directory - will now become the official Yahoo! Local advertising sales partner, and will sell listings to businesses that will appear as links on Yahoo! Local results pages. Advertising revenue will be split between the two companies.
Last night, Infoserve's broker, WH Ireland, predicted the company's expected turnover of £3.99m this year would grow to at least £23.16m by 2009 on the back of the deal.
Infoserve, which already has plans to almost triple its 125-strong workforce by creating 225 jobs over the next 18 months, is to increase that figure significantly as a result of the growth.
Last night, it said it was "likely" that hundreds more jobs could be created.
The deal was welcomed by the City yesterday, with Infoserve's share price almost doubling on the back of the announcement, rising from its opening rate of 31p per share to a high of 60p.
A spokesman for Infoserve, which provides on-line advertising services to about 20,000 UK businesses through a network of over 100 websites, last night confirmed the deal had been done, but said the company was unable to comment as matters were still at a sensitive stage.
But WH Ireland said the deal promised to be massive for Info-serve, which has recently relocated its headquarters from Stockton to premises on Darlington's Morton Park.
In a statement, it said: "Info-serve intends to offer four sponsored advertising positions on each page within Yahoo! Local for all towns, cities and postcodes in the UK.
"Management estimate that if it was to secure only two advertisers for only 100 discrete locations across only 125 distinct product categories, this would generate an additional £6.5m annual revenues and require an additional 90 telesales staff.
"This is a tiny level of market penetration compared with the 2,350 different categories of business used in Infoserve's database.|
Infoserve share price data is direct from the London Stock Exchange