Internet Business Share Discussion Threads

[the analyst] 07/1/2008 17:01

Certainly, revenue and profit at TAPPS grew very quickly between the year ending Dec 05 year and the year ending Dec 06:

Revenue up from 2.4m to 4.0m Euros (+67%)
EBITDA up from 0.4m to 1.04 Euros (+160%)

So, what happened in the 06/07 year, that has just been completed? - It's impossible to analyse the deal on the basis of financial fundamentals without the full information. Hopefully, the next broker note will provide it.

[the analyst] 07/1/2008 16:42

I think it's way too simplistic to look just at the past performance, especially when TAPPS figures are up until Dec 2006!

What's most important is the current trading and the outlook for future growth.

If we had a broker forecast for TAPPS, then that might help, as would a more recent trading update. Very odd that we didn't get more up to date figures in the announcement, don't you think?


" For the period ended 31 December 2006 TAPPS generated revenue of Euro4.00m (2005: Euro 2.40m), earnings before interest, tax and non-recurring items of Euro1.04m (2005: Euro0.40m) and profit before taxation of Euro0.80m (2005: Euro0.29m). At 31 December 2006 TAPPS had net assets of Euro0.20m."

[ninjatnut] 07/1/2008 16:12

OBR - saying that TMN is illiquid is simply incorrect. Over the last month TMN has had 6x the monetary value traded in its shares compared to IBG.

[old boy returns] 07/1/2008 14:37

Hi Stemis - so why do you think Maz did it? Does he somehow think it is really a merger and that a whole load of undervalued, illiquid TMN shares is better than cash?

[stemis] 07/1/2008 12:04

Indeed Ken.

TAPPS - Revenue £2.98m EBITDA £0.77m Net assets £0.15m Paid £5.7m (+ £2.24m earn out)
IBG - Revenue £16.44m EBITDA £1.56m Net assets £4.40m Paid £8.15m* (no earn out)[* Adjusted for IBG cash)

We've been had!

[stegrego] 07/1/2008 08:39

Maybe the Dutch arent run by a numpty?

[kenatbabken] 07/1/2008 08:37

Well it appears that the dutch are able to strike a good deal for their shareholders unlike our board as TMN have just bought a company with revenue
of £2.98m and EBITDA of £600k for £7.94m

[nghomi] 06/1/2008 13:24

Henoo.com seems to be unavailable this weekend :-(

[baheid101] 04/1/2008 12:55

A couple of encouraging observations about IBG's business:

(1) A successful affiliate blogging about intending to put more business through Affiliate Future do to their improved communication.



(2) High value organic search positioning for Cheapholidaydeals for the new ski section - try searching in Google for 'Cheap holidays in xxx' and throw in various ski resorts. They are generally in the top 5 natural search results. The website was previously not capturing any of the winter ski season.

Cheers

BH

[niggle] 03/1/2008 22:14

moob, you can sell now, why wait?

[moob] 03/1/2008 21:54

Feb 14 - let the selling begin!! (by IBG holders who dont want TMN) I wouldnt want it

[clocktower] 02/1/2008 15:51

coffeeelito,

Everyone here seems to be still on holiday.

[coffeelito] 02/1/2008 09:00

tick up

or is it a hickup?

[the analyst] 30/12/2007 18:27

There is no doubt in my mind that events over the last six months have resulted in a major set-back for IBG, but for me the thing is now to focus on the future, whether that be with or without Maz.

We now have what I consider to be a very strong management team and have the benefits of synergies between the two companies going forward. Simply using the TMN email base to send a few emails advertising the IBG sites will have a big effect on them. The TMN email advertising has been of great benefit to ASC, from what I gather. I don't think IBG would have considered such advertising routes previously, but now they have it to hand whenever they want it, and at very little cost. That's just one synergy and there will be many more to add to that.

I guess that over the next six months or so we will see how the new company begins to perform as one. I'm optimistic. I agree that the new group will present itself as a much better acquisition target.

[the analyst] 30/12/2007 18:18

"call me old fashioned but"

Oi, "old fashioned"!

[old boy returns] 30/12/2007 17:05

hi ta - call me old fashioned but if Maz had been hell bent on an exit asap following the strategic review - and subsequently continued to look for a buyer - then they massively misled the market in announcing that they had decided not to pursue any indicative offers in favour of a 2 year investment and growth strategy. I invested further on the back of that strategy and am now left feeling pretty misled.

Further, if Maz sells out after his lock-in in the current climate he is going to get a pretty poor return for all the work he has put into IBG and not really enough to make a big difference to his future. I just cannot see it. As I have already said my best guess is that they see the TMN / IBG combination as a nmore attractive atrget for a big media / advertising company (WPP or whoever) and that they can see good opportunities to grow earnings in the short - medium term through cross-selling each company's services to the other's client base etc.

[the analyst] 30/12/2007 16:44

Hi Old Boy - I think the deal is great news for IGB holders, but your confusion about holders may stem from your belief that an 'indicative' offer actually means something.

Having seen quite a few of these over the last year, I've come to the conclusion that an 'indicative' offer of any sort at the moment is not worth the paper it is written on. Seen it many, many times and it is commonly followed by profit warnings and almost never results in a bid at a premium.

In my opinion, Maz tried to find a buyer and failed. The best offer he got took a long time and it was the TMN offer.

I don't know if you were at last years AGM, but it was clear that Maz had big plans for some 'big project' that he wanted to do on his own. he later denied that, but my guess is if he can find an institution to take on his shares and start his own private company to follow his next plan, he will do so.

I hope I'm wrong though, it would be great if he does continue to work for the company for years and holds his shares for years to come too.

[old boy returns] 30/12/2007 16:14

Just a quick point as I am confused by the way that many posters on here see this TMN deal as an exit route for Maz. I cannot see how you can reach that conclusion because:

1. Earlier in the year he decided not to pursue indicative cash offers above 30p. I cannot see how he could prefer a paper deal at 12p to a cash exit at 30p+ as an exit route.

2. He will be getting illiquid TMN shares trading at a low rating in return for his IBG shares. I just cannot see him dumping them at the end of his lock-in even if a willing buyer could be found - unless the share price has risen massively by then.

To me the whole thing does not add up. I hear what Baheid says about TMN / IBG being a good combination but I still cannot get from Maz's decision a few months ago not to pursue indicative offers and to pursue a 2 year investment and growth strategy as the way to out value to his where we are now. My biggest comfort factor in holding IBG was that with the size of his shareholding Maz was unlikely to do anything which was not aligned to the best interests of shareholders in general.

So I am sure there must be more to it than we have been told. I am even wondering whether somehow this follows on from something which came up during the strategic review and that the boards of both TMN and IBG are so sick of the low rating the market is giving their companies that they have agreed to seek a combined exit through the takeover / merger with a later sale (on the back of a nod and a wink from their advisers) of the enlarged group to a big media player. If that is the case I just hope they have not been led up the garden path.

[moob] 28/12/2007 20:03

how soon before Maz resigns?

[kenatbabken] 27/12/2007 21:45

It seems the date has been set!!

"FOR INFORMATION PURPOSES ONLY
Please be advised that TMN Group has announced a recommended offer for Internet Business Group via a Scheme of Arrangement.
THE OFFER
Shareholders of Internet Business Group will receive 1 new ordinary share in TMN Group for every 3.765 ordinary shares held.
CREDIT OF PROCEEDS
We expect to credit your account with the proceeds on or around 14.02.2008
AS THIS IS A MANDATORY EVENT, THERE IS NO ACTION REQUIRED."

Valentines Day is it a love match!!

[valustar1] 27/12/2007 08:08

I have been thinking it might be a good idea to see if we can meet up with TMN and hear from them what their prospects are.

Anyone else interested

[niggle] 26/12/2007 23:05

Nath, read the full statement your commission has risen.

Hi All
We have introduced a new tiered commission structure for the duration of our sale period. This is designed to protect our margin as much as possible while rewarding our biggest affiliates. We will review this structure at the end of our sale period.

Basic commission 3%
10 Sales per month and over 5%
20 Sales per month and over 6%
30 Sales per month and over 8%

Kind Regards
Nigel

[hirschnathan] 26/12/2007 11:36

Nig

you left out the 3%, I thought sales are to clear out old stock. I dont think at this early stage you can afford to copy next

[niggle] 24/12/2007 09:06

Nath I agree with you we are having a cracking Christmas and you are in the lead for the top Affiliate; surprise surprise! :O)