INTQ.L Regulatory News (INTQ)

INTERNETQ plc

Trading Update

InternetQ plc ("InternetQ" or the "Group"), one of the leading providers of mobile marketing and digital entertainment solutions for mobile network operators and brands, today issues the following trading update.

The Board is pleased to report that InternetQ has delivered another strong trading performance, and for the period ended 31 December 2011 expects revenue, adjusted EBITDA and adjusted pre-tax profit to be in line with market expectations. The Group continues to make significant progress on its comprehensive business action plan to position itself for its next stage of growth and profitability, both in terms of geographic expansion and product development.

The recent acquisition of i-POP bolsters the Group's capabilities, as it continues to perform in line with management expectations with both new and existing customers reacting positively to InternetQ's ownership of the business. Post acquisition, the Group has dramatically increased its exposure to the Southeast Asian market and has also taken advantage of many business development opportunities that present themselves in the region and in China. The Asia Pacific market continues to be of great strategic importance for InternetQ, offering tremendous growth opportunities for both mobile marketing and digital entertainment activities.

Consistent with its long term strategy, the Group managed to further limit its exposure to the Greek economy and the Eurozone area altogether, favoring instead expansion in rapidly developing economies such as Turkey, Russia and Southeast Asia. Specifically, more than 65% of the Group's revenues in 2011 are expected to be non-euro denominated, while less than 10% of the total revenue will be in Greece. Most importantly, InternetQ holds the vast majority of its cash reserves in the UK, with less than 3% of its total cash reserves deposited in Greek banks.

InternetQ's balance sheet remains strong and the Board expects cash to approximate €12 million at 31 December 2011, allowing the Company to continue its business development uninterrupted, either through organic growth or acquisitions.

Konstantinos Korletis, Chief Executive Officer of InternetQ, commented:

"We continue to see strong demand for our services driven by a combination of our leading position in key markets, our expanded global footprint and the continued demand for innovative mobile marketing services as a reliable alternative to traditional methods. Most importantly, we are experiencing very high growth in our mobile entertainment business as we continue entering new territories and introducing more sophisticated services on our AKAZOO platform. 

We believe we are well placed to take advantage of the market momentum which is particularly strong in regions like Southeast Asia, Latin America and Russia. With strong cash reserves and limited exposure to the Eurozone area, we remain confident we will meet market expectations. Our business continues to innovate, our customer value proposition is strong and we keep investing to enhance and diversify our portfolio of products and services to meet new market trends. "

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About InternetQ

InternetQ is a trusted global leader in mobile marketing and digital entertainment solutions listed on the AIM market of the London Stock Exchange. Its proprietary technology platforms support some of today's most recognized brands and enterprises with innovative solutions to help manage mobile interactive communications and push the frontiers in digital mobile entertainment. (INTQ: trading symbol)