iTouch revenues rise to €49.6m

iTouch revenues in the first half of 2004 rose by 31% to £33.8m (€49.6m) from £25.8m as pre-tax profits hit £1.1m against losses of £5.1m a year earlier.

The results by the 39.7% Independent News & Media-owned firm were described as strong by Goodbody analyst Neil Clifford despite the company making net profits of just £152,000 (€223,123).

“The company is now profitable delivering an operating profit of £1.2m, compared to a loss of £4m in the first half of 2003. The company noted a number of reasons for this increase, the acquisition of Movilisto, the restructuring of the company in 2003 and the launch of a higher-margin direct channel model.

“Europe remains the main focus for iTouch and in the first half its European revenues increased by 29%, to £25.1m. The company noted the second half has started very positively and it is well positioned to benefit from the consolidation taking place in the industry.

iTouch said one of the highlights of the period was securing the Shrek 2 content contract with Dreamworks. Chairman Ivan Fallon said the company has continued to make significant progress during the first half of the year.

“The second half of the year has started very well and these are exciting times for iTouch with the increasing sophistication of mobile phones and users,” he said.

iTouch chief executive Wayne Pitout disclosed the group entered into due diligence on a potential acquisition in early 2004, but negotiations ceased, as significant risks were identified.