Monstermob heads for overseas expansion

UK mobile phone entertainment group Monstermob today signalled a major international expansion with the acquisition of a US rival for up to £17m (€25.3m).

Monstermob, which sells polyphonic ringtones, java games and colour wallpapers, said the acquisition of 9 Squared was a step towards becoming the world’s leading mobile content provider.

Denver-based 9 Squared supplies products under the RingTone JukeBox, mTat2 and Great American Country brands to various major US and international mobile network operators.

The group is rolling out a subscription-based ringtone application on China Mobile, the largest mobile network operator in the world with more than 160 million subscribers.

It has also just launched in Thailand and expects to enter several other Asian markets in the coming three months.

Shares in Monstermob soared 12%, or 9p to 79p, on the announcement.

Monstermob’s chief executive Martin Higginson said the acquisition would help it to create a worldwide presence.

“This transaction will position the business for substantial growth throughout 2005 and 2006,” he said.

Lancaster-based Monstermob said the outlook for the second half of the year was positive as it posted a 30% rise in pre-tax profits to £1.2m (€1.8m) for the six months to June 30.

The group said total turnover in the period was £8.7m (€12.9m), up by 32% over the same period last year. Profits after accounting for write-offs relating to the group’s launch of its new chat service, Seemee, were £793,000 (€1.2m).

Subscriber numbers at June 30 were nearly 300,000, topping the group’s full year budgeted target of 250,000.

The company made two acquisitions during the period, Mediaprom and Phunky Phones.

It said Mediaprom had allowed it to develop its competition activity through the launch of a weekly quiz-based competition service called Jet Set Club, which had recruited 20,000 subscribers in the six weeks since its launch on June 17.

“The group plans to grow this area of business on a global basis,” Mr Higginson said.

Monstermob said the acquisition of Phunky Phones represented its first move into supplying services to mobile network operators such as Vodafone, T-Mobile and O2.

Phunky already supplies Vodafone Live! – a service offering picture messaging, games and ringtones – and said it intended to develop the operation.

Monstermob will make an upfront £1.6m (€2.4m) payment for 9 Squared, plus a potential further £15.3m (€22.7m) by March 1 next year subject to the US company’s revenue performance during the fourth quarter of 2004.