IN&M spin-off iTouch delivers

MOBILE phone ringtone, competition line, horoscope and general content provider iTouch has hit a profits groove.

Total sales for the third quarter of the year at the Independent News and Media (IN&M) spin-off were up 37% on the same period last year at £22.3m (€31.9m). Operating profits were £1.3m, following a £700,000 (€1m) loss in the same period last year. Net income in the three months to September 30 was £744,000 (€1.06m), compared with a loss of £1.34 million (€1.9m) a year earlier.

The news that iTouch has made profits in two consecutive quarters helped push up IN&M shares by more than 1%. The Dublin based international media company retains a 39.7% stake in iTouch.

Company chairman Ivan Fallon said: “This very strong set of financial results confirms iTouch’s success as a world leader in the mobile entertainment industry. The group’s direct channel model, pioneered so successfully by Movilisto in Spain, is gaining significant momentum, and has been enhanced by the acquisition of Jippii. The transaction has significantly contributed to the expansion of iTouch’s geographical reach into 25 countries and we look forward to continuing expansion in 2005.”

Merrion Stockbrokers’ Brid White said the roll out of multi-function handsets continues to drive results as does the company’s content partnering strategies and its subscription model.

“The company has also added to its available content through partnerships and we expect the company to be able to continue to profitably exploit these advantages over the next few months,” she added.

Davy Stockbrokers’ Brendan Quinn said that while iTouch shares have had a decent run since the end of October the stock is valued significantly below its peers.

iTouch, which has £13.9m (€19.9m) in cash, is considering further acquisitions, the company said, but indicated that iTouch will not spend all its funds on a single target, preferring to offer takeover targets a mix of shares and cash.