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Much as presaged in its July trading update (see InternetQ soars on mobile growth), mobile marketing and entertainment solutions provider InternetQ stormed ahead in the first half of the year, with revenues up 51% to €32.8m, all organic. Gross margins improved by 3 points to 42.3%, but increased investment in sales and marketing saw operating margins lose nearly a point to 6.5%. As a result, pre-tax profits rose by 7% to €1.9m with EPS stead at €0.05.
InternetQ has five distinct businesses. Mobile Marketing is the core (almost 80% of total revenues) and is the only profitable division. Akazoo is its internet music service (do we really need another one?) which accounts for 14% of group revenues but lost €0.78m, albeit substantially better than the €1.18m loss in H1 2011. There is also a tiny ‘Legacy’ division (1%), Aggregation Services (5%) and Investment Properties (negligible).
It looks like InternetQ is in the right place at the right time at least with its core mobile marketing services. If it can also drag Akazoo into profit, then so much the better.
