Trading UpdateJuly 26, 2011
FOR IMMEDIATE RELEASE
Tuesday 26 July 2011
Globo plc (“Globo”, the “Group” or the “Company”; LSE-AIM: GBO), the international IT, mobile solutions and SaaS provider, today provides a trading update for the 6 months ended 30 June 2011.
The Group is pleased to report that revenues for the period increased by 56.5 per cent in the first half of 2011 to €19.61 million (H1 2010: €12.53 million), ahead of the Board’s expectations, with pre-tax profits expected to be substantially higher than for the same period of last year. The contribution of SaaS to revenues (including Mobile SaaS revenues) today represents 48 per cent of Globo’s total revenues, potentially providing significant comfort on expected future growth prospects.
This strong financial performance reflects Globo’s continued successful expansion into the international mobile market driven by GO!Social and CitronGO! with total subscribers in line with market estimates, and this has contributed €7.45 million to revenues, representing 38 per cent of the Group total for this period in 2011, compared to €1.1 million, or 8.8 per cent of the Group total in the first half of 2010.
The February 2011 Placing has enabled a boost to operations by providing the Group with the financial resources to invest in the accelerated expansion of its international business. In addition, the Group continued to invest in developing its products and services. Operating cash flows for the period remained strong and the Group had a net cash position of €1.76 million at 30 June 2011 (net debt of €11.4 million as at 30 June 2010).
It has usually been the case that H2 is the period when Globo has produced its strongest revenues. The Group anticipates 2011 will follow a similar pattern with continued improvement in margins following its investment in product development.
The Group is continuing its successful strategy of expanding the international footprint of its mobile offerings CitronGO! and GO!Social, which focus mainly on the consumer market, through distribution partnerships with major market players. At the same time, the Group is laying the foundations for longer term growth from the enterprise market with GO!Enterprise Server, a product utilising Globo’s proprietary ‘cloud’ technology platform.
The full commercial launch of GO!Enterprise Server is planned to take place during the third quarter of the year with the first contribution to revenue expected towards the end of 2011. Management are excited about the upside potential for GO!Enterprise Server and about the potential opportunity it offers to achieve substantial profitable growth over the coming years.
Globo’s non-executive Chairman, Brett Miller commented: “During the first half of 2011, Globo made substantial progress with its international expansion which today represents 38 per cent of its total revenues. This acceleration and success is supported not only by the quality of its mobile products but also the continuous demand from mobile operators and partners to offer solutions that enhance mobile internet use in everyday consumer and professional lives.
We believe that our progress will continue through the second half of the year, traditionally our stronger trading period, and are confident about our prospects for the future.”
GLOBO plc was admitted to AIM in December 2007. Founded in 1997, Globo has established itself as one of the international market leaders in the Mobile and ICT market, offering a wide range of products and services to the mobile, corporate, public and consumer market. It provides mobile, e-business and telecom software products and related services to the private and governmental and mobile sectors. The Group has an International presence with offices and subsidiaries in 8 countries and continues to expand internationally based on its mobile communications strategy. For further information please go to www.globoplc.com