||EPS - Basic
||Market Cap (m)
Real-Time news about Itouch (London Stock Exchange): 0 recent articles
|mdchand: All - taken from CS broker note issued today.
These were a strong set of figures that saw the group report its first annualised profit.
Sales growth of 29% to £78m only tells part of the story with Consumer data revenues up 229% to £48.6m. Consumer revenues were driven by a full twelve months contribution from Movilisto, strong underlying organic growth, roll-out of the direct distribution model into new markets and a maiden contribution from Jippii (acquired in August 2004). IVR revenues now represent just 18% of group sales and as a consequence gross margins improved to 57% from 43%.
Adjusted EBITDA of £8.1m (£0.1m in 2003) was in line with consensus but slightly below our £8.4m. This was entirely due to Jippii (£0.3m EBITDA loss), where the group accelerated investment in sales & marketing. The EBITDA figure was particularly impressive given the cost of rolling out to new territories such as France & Poland. Excluding set up losses from these territories, Jippii and discontinued activities, the underlying EBITDA was £9.2m.
After depreciation of £1.1m and net interest receivable of £0.2m, adjusted PBT was £7.2m against a £1.2m loss in 2003. Adjusted EPS was slightly higher than expected at 1.3p as a result of a lower than expected tax charge (29%). Net cash flow from operating activities was £3.5m after a working capital outflow of £3.2m (reflecting the growth in the Consumer business). In addition, there was a foreign exchange cash change of negative £0.8m. Despite this the group generated £0.4m before acquisitions. The group ended the year with net cash of £13.1m.
Exceptionals during the period amounted to £2m, with £1.4m arising on the disposal of iTBM (iTouch Business Mobility) a loss making non-core business. iTBM is being acquired by Avi Azulai for £1.1m (in loan notes). Avi is also stepping down from the board. The remaining £0.6m exceptional was related to restructuring charges at Jippii and the Australian businesses following a move to the direct distribution model.
2004 was a year of considerable progress for the group. iTouch has delivered an annualised profit despite the roll out of the direct distribution model into a number of key new territories. We believe that the group will look to accelerate the development of these new markets. In addition, iTouch is actively evaluating opportunities in additional territories (e.g. China, India, South America, other European countries) either through acquisition or strategic partnerships.
The group is also strengthening its content base particularly in games, gambling and music. iTouch has made a number of announcements in this area in the last few months.
Jippii is also an important part of the strategy and is being evolved into the core content brand across the group. The brand already has an established Internet portal that is live in 21 countries and with over 30m games played online each month.
Mobile content is a global and rapidly expanding market where the underlying growth dynamics remain attractive. There will be some operators that are playing a short-term game with the hope of being consolidated while others adopt a longer-term strategy through building a solid platform upon which to build. We believe that iTouch is following the latter but given that the shares trade on a discount to the sector, the investment community may be looking for more short-term excitement. An acceleration of the organic development in new territories together with further strategic deals, could prove the catalyst to re-ignite upward share price momentum. If not iTouch could find itself being consolidated by a larger player.|
|arthurly: And ITU are also going to be into the gaming/gambling side but it doesn't seem to have helped the share price yet.|
|devbod: Something I don't quite understand. If the company is in talks that might produce a bid at a premium to current share price why did the directors offload such a large amount of shares only 2 weeks ago?|
|yump: Someone in the press has seen the MOB share price thats all.
I would have no confidence in itouch management if they paid based on the current price for MOB. If they had anything about them they should have bought it a few months ago. The information for those in the industry was there to see. The businesses that do well are the ones that acquire when the other companies are at 10x earnings or less and 'undiscovered'.|
|beckaroo: Leys hope we follow in the footsteps of Monstermob and Stream Group soon. Positive news on Times but I don't think it will make any impact on share price.
After last week's sales by directors, iTouch held steady at 32¼p, despite talk that the mobile services provider has received a sales boost from its role in handling text message voting for Celebrity Big Brother, which concluded on Sunday.|
|jorus: Yes, with many more buys than sells over the last week or so one might expect a slight rise in the share price. Perhaps the now recognised danger of giving children mobile phones is cause for alarm after all in this industry!!|
|nmjnmj: Filling a big order maybe? You would like to think so! I sold out because there is little interest shown in this share. I wouldn't be surprised if it jumped back up to 36p again. Typical really. Profitable company, good turnover and drop in share price...
|gsands: Well done Ged and others. Your patience certainly deserves rewarding. I hope ITU breaks out well and truely into profit this year and the share price follows.|
|warranty: Super post astralmike, let's hope ITU are getting more than their fair share so to speak.
Most of the current growth seems to be related to Asia but Europe must catch up when we get the 3G Networks up and running properly. At that point we should be looking good with the requisite nudge up in the ITU share price.
Waiting to add but afraid it may not go much lower than this. When are you looking to add yourself AM?|
|gsands: Yes - this institutional share placing at 27.5p is indeed excellent news.
I don't think the price will retrace. Quite the reverse. If the institutions were happy to buy £4mil worth of shares at 27.5p then you can be sure this is a VERY SAFE figure indeed.
YOO recently placed shares at 25p with institutions. The share price after that never got lower than 28p. I was sure that there would be some retracement so I had a limit order running for weeks at 26p, but it never got filled.
In fact the price sat at 31p for a long time. I waited and waited feeling sure that in the absence of contract news from YOO the the price would surely fall. It didn't and the next thing I knew the price was rocketing up again.
Today it is at 46p and it almost seemed that the share placing had been timed to be just prior to a nice steady stream of positive news to bolster the price and bed the institutions in nicely.|
Itouch share price data is direct from the London Stock Exchange