iTouch extends reach

MOBILE PHONE services provider iTouch plc, in which Independent News & Media has a 39% stake, extended its reach to Russia and eastern Europe yesterday by spending €12 million on a Finnish mobile entertainment company.

Under the terms of the deal, iTouch will take control of Jippii, which provides entertainment services such as games and premium text message services to 74 mobile network operators in 20 countries.

“This acquisition represents a key strategic move for iTouch, providing direct access to important new markets in eastern Europe, a leading position in Russia, Switzerland and Belgium, and a popular pan-European internet brand which will form the basis of our medium term mobile internet offering,” said iTouch chief executive Wayne Pitout.

The deal will require iTouch to pay up to €18 million extra on a phased basis, subject to Jippii’s financial performance over the next 12 months. Jippii recorded operating profits of €2.1 million last year from turnover of €9 million.

iTouch said Jippii’s business model and geographic markets would fit in well with its strategy and the enlarged group would benefit from cost savings and joint efforts in marketing and new product development.

Jippii’s online gaming facilities are used by 2.8m people every month.

The company expected to use Jippi to give it a strong platform in Russia, where there were currently 47 million mobile users but where an additional 13 million new users were expected before the end of the year. Jippii is a leader in its chosen markets in Russia.