INTQ.L Regulatory News (INTQ)

InternetQ plc - Q1-Q3 2015 Trading Update

PR Newswire

London, November 16

17 November 2015

INTERNETQ PLC

('InternetQ', the 'Group' or the 'Company')

Q1-Q3 2015 Trading Update

InternetQ plc (LSE-AIM: INTQ), a leading provider of mobile marketing and digital entertainment solutions for mobile network operators and brands, announces the following positive trading update for the nine month period ended 30 September 2015. During the period, the Group has benefitted from further commercial progress across both its mobile marketing and digital entertainment divisions.

Financial highlights

Revenue up 20% to €105.6 million (Q1-Q3 2014: €88.2 million)

B2B (mobile marketing) total revenue up 17% to €79.7 million (Q1-Q3 2014: €68.2 million)

B2C (digital entertainment) revenue up 30% to €23.3 million (Q1-Q3 2014: €19.9 million)

EBITDA (adjusted) up 30% to €17.5 million (Q1-Q3 2014: €13.5 million)

Profit before tax (adjusted) up 4% to €7.9 million (Q1-Q3 2014: €7.6 million)

B2B – Mobile marketing

New direct advertising campaigns, with no intermediary costs, created new revenue streams, increased momentum and helped drive improved B2B margins

Continued improvement in the quality of Minimob’s client base with new campaigns run for global brands including AliExpress/Alibaba, Deutsche Welle, Samsung, eBay, Deezer, Pandora, PokerStars, Amazon, Tokopedia and HBO

Ongoing product development with the creation of a data front end that allows greater insight into daily transactions; the launch of a self-serve advertisers’ platform; and full development of the programmatic offering that will significantly differentiate the Minimob platform from competition and help attract new business

B2C – Digital entertainment

Successful integration of Akazoo/R&R Music with the launch of operations across the UK, Ukraine and Greece underway

Akazoo doubled its subscriptions growth rate in Poland, with the music streaming service benefitting from a significant increase in brand awareness

Following the launch of the service in Indonesia in the first quarter of the year, Akazoo subscriptions in the region grew at a 50% month-on-month rate

Successful launch and distribution of Akazoo Radio in Poland, Indonesia and South Africa

Panagiotis Dimitropoulos, Founder and Chief Executive Officer of InternetQ, said:

“We have seen continued strong commercial momentum across the B2B and B2C businesses over the last nine months. We recently released the landmark self-service advertiser platform, as a separate feature of Minimob, and noted a positive adoption of the proposition by our clients and partners. At the same time, the ongoing restructuring of Akazoo positions us well to continue to accelerate future growth in our B2C segment.

“This December, InternetQ celebrates fifteen years of successful operations in the fast-paced high-end technology space. We have two distinct segments that have grown in parallel and are now healthy, autonomous businesses. We are seeing accelerated revenue growth in the second half of the year with Minimob’s strengthened position fueling the growth of our B2B segment and improved margins. We expect that the continued shift towards adtech campaigns will have a positive effect on our top line and cash conversion going forward.”

For further details:

About InternetQ plc:

InternetQ is a leading digital content and mobile marketing services company with operations spanning Asia, Europe, Africa and the Americas. It offers proprietary technology platforms to help mobile network operators, brands, and media companies to conduct targeted, interactive and measurable marketing initiatives on mobile devices. Its mobile value added services include Akazoo, which allows consumers to purchase digital music content and Minimob, its smart mobile marketing and advertising platform to conduct effective and measurable campaigns on mobile phones and achieve user engagement and app monetization. All of InternetQ’s products are underpinned by the rapid global growth in smart devices and the thriving app economy.

InternetQ is a publicly traded company listed on the AIM market of the London Stock Exchange, under the symbol INTQ. For investor related queries, please email: ir@internetq.com

ENDS