INTQ.L Regulatory News (INTQ)

21 January 2015 Final INTERNETQ PLC ('InternetQ', the 'Group' or the 'Company') Trading update for the year ended 31 December 2014 Strong financial and commercial performance driven by increasing demand for mobile marketing and international growth of digital entertainment division InternetQ plc (LSE-AIM: INTQ), a leading provider of mobile marketing anddigital entertainment solutions for mobile network operators, app developersand brands, announces the following positive trading update for the year ended31 December 2014. The Company will announce its full year results for the 12months ended 31 December 2014 on 31 March 2015. Financial update InternetQ has continued to deliver strong growth during 2014, with revenuesincreasing by nearly 27% to well over €130 million, with the B2B (MobileMarketing) segment contributing 79% and the B2C (Digital Entertainment) 21%.Margins improved in the second half of the year, driving annual adjusted EBITDAto over €22 million and adjusted profit after tax to the order of €14 million. InternetQ maintains a strong balance sheet with cash as at 31 December 2014 inexcess of €12 million. Cash generated from operations was close to €15 million(compared to €12.4 million in 2013) generating positive free cash flow. Thissolid financial position provides sufficient capacity to support future growthas smartphone adoption and usage become commonplace across both multipleemerging and developed markets. Panagiotis Dimitropoulos, Founder and Chief Executive Officer of InternetQsaid: "Mobile marketing is expanding rapidly across the globe and InternetQ isproviding profitable, performance-based marketing solutions which are achievingconsiderable traction. With our expanded geographic reach and our innateinnovation, InternetQ remains confident in our ability to deliver strongrevenue and earnings growth in the years ahead." B2B (Mobile Marketing): strong growth with new opportunities forperformance-based advertising platforms created as mobile advertising spendcontinues to rise InternetQ's B2B division continues to benefit from positive market trends withglobal smartphone adoption and the growing app economy driving demand formobile advertising. Global advertising spend is forecast to increase 4.9% in2015 to a total of US$545 billion, of which mobile will be the biggest driverof global advertising growth, contributing 51% of all additional spend between2014 and 2017 (source: Marketing Profs, 5 January 2015). Increasing demand for InternetQ's Minimob platform * More than 400 million unique Minimob SDK installations with 3800 active app developers now using the Minimob platform. Minimob's 400 million installations provide a direct route to exclusive ad inventory that is available to InternetQ each day. This forms a unique private ad network that can be directly monetized with marketing offers. * 33 additional advertising networks/demand-side platforms (DSPs) fully integrated with the Minimob platform, now totaling 138. * Over 2,500 new performance based advertising campaigns for brands, ad agencies and operators run through the Minimob platform in December 2014, almost double compared to the same period in 2013. * Continued innovation with new features and functions, including an easier way to automate the integration of offers and enhanced targeting ongoing in Q1 2015. Strong performance achieved in Latin America with robust pipeline for 2015 * Ongoing branded mobile marketing campaigns with all major Mobile Network Operators in the Latin American region with projects undertaken in Costa Rica, the Dominican Republic, Ecuador, Guatemala, Honduras, Peru, Nicaragua and Paraguay. * Solid pipeline with another four new campaigns in Latin America expected to start in the coming month. * New contract wins with two leading carriers in the African region with campaigns expected to start soon. B2C (Digital Entertainment): Agreements with MNOs and device manufacturerscontinue to drive international expansion * Good results achieved following the co-branded add-on service offering with MTN Cyprus, announced in November 2014 with a 10% opt-in conversion. * Launch of BlackBerry Messenger (BBM) partnership in eight countries with focus on Indonesia and strong revenue performance. * Launch of co-marketing initiative with device manufacturer Smartfren in Indonesia to promote an add-on service offering to its customer base of over 12 million subscribers. * Launch of MP3 bundle in Orange Poland. * Strengthened Akazoo proposition and competitive position in the music marketplace with further updates to the platform including the development of Business Intelligence and the integration of messaging features. * Launch of Akazoo in another western European market and new strategic partnership deals in the Asian market expected by the end of Q1 2015. ENDS For further details: InternetQ Tel: +44 (0) 20 3519 5250 / +30 (211) 101 1101Panagiotis Dimitropoulos, Founder and CEO Tel: +30 (697) 811 7520Veronica Nocetti, Chief Financial Officer Tel: +30 (694) 420 5275 FTI Consulting LLPCharles Palmer / Chris Lane / Karen Tang Tel: +44 (0)20 3727 1000 RBC Capital MarketsPierre Schreuder Tel: +44 (0)20 7653 4000 Canaccord GenuitySimon Bridges / Emma Gabriel Tel: +44 (0)20 7523 8000 About InternetQ plc: InternetQ is a leading digital content and mobile marketing services companywith operations spanning Asia, Europe, Africa and the Americas. It offersproprietary technology platforms to help mobile network operators, brands, andmedia companies to conduct targeted, interactive and measurable marketinginitiatives on mobile devices. Its mobile value added services include Akazoo,which allows consumers to purchase digital music content and Minimob, its smartmobile marketing and advertising platform to conduct effective and measurablecampaigns on mobile phones and achieve user engagement and appmonetization. All of InternetQ's products are underpinned by the rapid globalgrowth in smart devices and the thriving app economy. InternetQ is a publicly traded company listed on the AIM market of the LondonStock Exchange, under the symbol INTQ. For investor related queries, pleaseemail: ir@internetq.com