Globo Plc (LSE: GBO) the international Mobile solutions and SaaS provider, is providing a trading update ahead of its Annual General Meeting which is being held at 11.00am today.
Trading during 2012 to date has been strong with international revenues and profits dominating the Group's overall performance. This reflects Globo's continuing focus on developing its international mobile business which now represents more than 60% of Group revenues.
Globo's management is continuing to implement its successful strategy of expanding the international footprint of its consumer mobile apps, CitronGO! and GO!Social, through distribution partnerships with major market players. During the first 5 months of 2012, Globo won additional contracts with 5 new MVASPs (Mobile Value Added Services Providers) operating in Central America, Africa, Middle East and having business with a total 24 MNOs (Mobile Network Operators) in 17 countries. This development added to Globo's existing partnerships which contributed revenues from 18 countries during 2011.
Overall, demand for consumer mobile apps CitronGO! and GO!Social, is continuing to grow as a result of the significant functionality, including email, social networking and instant messaging, they add to feature phones that are generally used in emerging markets.
This strong demand has resulted in 21 per cent growth in total active subscribers during the first 5 months of 2012 to approximately 1.7 million subscribers (31 December 2011: 1.4 million).
The Group has also accelerated the commercial development of its flagship Enterprise Mobile Offering, GO!Enterprise Server which was launched during November 2011 and contributed €2 million to revenues in 2011. GO!Enterprise Server is targeting the enterprise mobility market through two main channels: MNO's and Value Added Resellers such as System Integrators, Software Vendors and Consultants.
The licensing model for GO!Enterprise Server is based on three different licensing options, namely a Monthly recurring license, a Yearly renewable license or a Perpetual license provided with Software assurance service contracts. This licensing structure enables the Group to offer the best possible tools to its partners in order to match their invoicing policies and the end customer's requirements.
To date, Globo has successfully signed agreements for GO!Enterprise Server with a significant number of high quality customers and partners, including ATOS, Fujitsu, Bull, Artezzio (part of Lanit Group), Mobylla, Ethnodata, and Atlantis Research. In addition, Globo is at an advanced phase of rolling out the GO!Enterprise Server offering with 3 International mobile operators following successful completion of product assessment and quality control, as well as offering the product through 2 major IT distributors covering the US, Canada and European markets.
Following Globo's participation and feedback received at GSMA Barcelona 2012, CTIA Wireless 2012 and numerous CIO summits during the past 5 months, management is convinced that GO!Enterprise Server offers the highest standards of security and functionality within the Enterprise Mobility market and will be the catalyst for further acceleration in the Group's international expansion.
Dialect Technologies Inc, acquired by the Group in February 2012, represents Globo's entry into the US market. The integration of the business and technologies of Dialect is proceeding smoothly, while contributing additional international revenues and profits to the Group.
Globo continues to invest and innovate in product development, expanding its product portfolio with the launch of new versions and functionality that follow the latest market trends. Globo plans to launch GO!Enterprise Cloud to offer secure Enterprise mobility through a centralised cloud-based service offering by the end of Q3 2012, and GO!Enterprise Voice to offer secure Enterprise PBX telephony integration on all smartphones by the end of 2012.
The successful completion of the £9.6 million share placing in May 2012, has further strengthened the Group's cash position which currently stands at €21 million, enabling Globo to be more aggressive in marketing, new market entries, recruitment, product development and acquisitions.
As announced earlier this year, management intends to divest its Greek commercial operations during 2012. It is planned that the divestment to a third-party will result in retention of a minority holding in the Greek business for the Group.
Following this transaction, the Group's activities will be almost entirely international and will be executed around the clock, from its main offices in London, New York, Athens, Dubai and also San Francisco which is planned to be operational by the end of Q3 2012. The Group will retain its mobile software production unit in its Athens office and benefit from the substantial knowledge and skills acquired during the successful production of all Globo's mobile products, at a lower cost compared to the UK and US.
Globo's non-executive Chairman, Barry Ariko commented:
"Globo's success in building a significant international mobile business over recent years has been outstanding. Having invested in developing new products to meet the future mobility needs of enterprises and consumers around the world, we are now experiencing strong, sustainable demand from across our customer base.
The acquisition of Dialect Technologies Inc. was our first step for capitalizing our technology and offering in the established US market for enterprise mobile technologies with emphasis on the "Bring Your Own Device" trend, where we believe we should be very successful.
Globo has a substantial opportunity for profitable growth over the coming years and we have the vision, strategy and resources to achieve this. As a result we are excited about the Group's prospects and are confident that we will deliver a strong financial performance for the current year."
GLOBO PLC www.globoplc.com
Costis Papadimitrakopoulos, CEO +44 207-378-8828
Dimitris Gryparis, Finance Director
Daniel Stewart & Company Plc
(Nominated Adviser and Broker) Noelle Greenaway, Director, Corporate Finance +44 20-7776-6550 Martin Lampshire, Head of Corporate Broking
Bankside +44 20-7367-8888 Simon Bloomfield or James Irvine-Fortescue
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