Globo expects revenues ahead of market expectations

Globo advanced 10 per cent Friday after the mobile and software company forecast full-year revenues ahead of market expectations.

Globo advanced 10 per cent Friday after the mobile and software company forecast full-year revenues ahead of market expectations.

The AIM-listed group pegged revenues at €58m for the year to December 31st, a 28% increase from the previous year.

Revenue from continuing operations - excluding an eleven month contribution from divested Greek operations - was €46m, compared to the adjusted amount of €27.8m in 2011, a 66% rise.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) were estimated at €29m, a 42% jump.

The group said mobile software product sales, which represented more than 90% of continuing operations, contributed to a majority of the total profits.

Mobile products CitronGO! and GO!Social achieved revenue of €29m for the year, an increase of about 25% from 2011.

GO!Enterprise, a server for mobilising business operations, generated sales of more than €12m, a 530% increase compared to €2m the year before.

During the period the company acquired Dialect Technologies, recently renamed Globo Mobile. The business is now the US operations and sales arm for GO!Enterprise and reported strong performance in securing a number of initial deals.

Operating cash flow increased to €13m, demonstrating an improvement in working capital and collection terms from the growth achieved by international mobile operations.

Globo invested €11.5m in research and development, compared to €14.5m in 2011.

"This was another excellent year for Globo," said Chief Executive Office, Costis Papadimitrakopoulos.

"Starting with the acquisition of Dialect in February and continued demand for our solutions throughout the year, we ended 2012 with a strategic and well executed divestment from our Greek operations."

Last year Globo agreed the sale of 51% of its subsidiary Globo Technologies, comprising all Greek-related e-business software operations, to GT's management team for a total consideration of €11.2m.

With organic positive free cash for the year of €1.6m, the group plans to invest in technology and development initiatives, along with acquisitions this year.

"For the past 15 years since being founded and throughout the 5 years since being listed on the AIM market, Globo has been delivering sustained growth beyond market expectations driven by the innovation and the passion of its people, whom I would like to thank on behalf of our shareholders," Papadimitrakopoulos said.

"This is what we aim to continue to do in the years ahead as well".

RD

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