IMImobile geography revenues

The gross profit from India & South East Asia region for IMImobile declined by 19% to £2.47 million for the six month ended September 30, 2014, from £3.1 million in the corresponding six month period last year.

IMImobile says the profits declined due to the ongoing consequences of the implementation of TRAI’s VAS guidelines that impacted its customers (primarily mobile operators). The company mentions these regulations has impacted the whole market of content and value added telecom services, which is IMImobile’s primary activity in the country.

The total revenues from this region however grew marginally to £4.54 million for the six month period, from £4.41 million revenues in the corresponding six month period last year. The region accounted for 20.9% of IMIMobile’s overall revenues that was at £21.5 million for the six month period, up 4.9% from the corresponding period last year. In comparison, India & South East Asia region had accounted for 15.1% of IMImobile’s overall revenues for the same six month period last year.

cmn_IMImobile

Operational Highlights

Acquired UK-based mobile marketing & communications company TextLocal for around £13.15 million (£10 million in cash and around £1 million worth of IMImobile shares). Post acquisition, IMImobile was expected to integrate TextLocal’s messenger platform to its core infrastructure to strengthen its mobile engagement product suite. This acquisition also gave IMImobile access to a substantial new client base comprising small and medium sized businesses, providing them opportunities to cross-sell their offerings to these businesses.

– Launched in new markets like Myanmar and is foraying into new sectors like public sectors. Earlier this week, IMImobile had partnered Karnataka government to launch a mobile governance platform called Karnataka MobileOne. This platform was developed and deployed on IMImobile’s OpenHouse platform.

– Renewed key contracts with BBC and a leading UK motoring organisation. Note that IMImobile had deployed its mobile & social audience engagement platform DaVinci Social across BBC in July this year. BBC was expected to use the platform to manage its inbound and outbound audience interactions on its radio, TV and live events across SMS, MMS, E-mail, Facebook, Instagram and Twitter.

Tied-up with UK’s Post Office to launch a new ‘Tweet to Donate’ payment solution that allows Post Office to process donations via Twitter for BBC’s Children in Need charity campaign.

– Secured new major operator clients in UK, Nigeria and Costa Rica. Also started foray into Gambling and Retail sectors.

Europe operations

Gross profit from Europe grew by 18% to £6.33 million for the six month period, from £5.4 million in the same period last year. The total revenues grew by 6.7% to £11.2 million for the period, from £10.5 million in the same period last year. IMImobile says that the margins from SaaS and Managed Solutions grew during the period due to further reductions in the cost of network infrastructure.

Middle East and Africa operations

Gross profit from Middle East & Africa (MEA) region grew by 8% to £4.5 million for the six month period, from £4.1 million in the same period last year. The total revenues however remained nearly flat at £5.52 million for the period, from £5.5 million in the same period last year. This includes revenues from both managed solutions and license revenues.

IMImobile says it has secured number of new operator contracts during this six month period and has scheduled deployments throughout the second half of the year.

Financials

The adjusted profit after tax grew by 29% to £2.3 million for the six month period, from £1.7 million in the same period last year while the EBITDA grew by 10% to £3.8 million for the six month period, from £3.4 million in the same period last year. Gross profit grew by 7% to £13.5 million from £12.7 million.

IMImobile financials

IMImobile’s London IPO: Earlier in June this year, IMImobile had raised £30 million (before expenses) through an IPO on London Stock Exchange’s sub-market AIM (Alternative Investment Market). It had issued 25 million ordinary shares of 10 pence each at an issue price of 120 pence per share. This represented about 53% of the company’s total issued share capital.

After fees and acquisition of IMI Mobile India pursuant to the acquisition agreements, IMImobile mentions that it raised net proceeds of around £8 million to grow its revenue & profit from its core business and for future expansion plans. More on IMImobile IPO here.

Total Cash: IMImobile has a total cash and cash equivalents of £16.9 million as of September 30, 2014, up from £9.3 million as of September 30, 2013.