iTouch on track for profit in 2004

MOBILE information services provider iTouch has pushed revenues up by 88% in a year and is on course to make profits in early 2004.

iTouch is a spin-off from Independent News & Media in which the publisher of the Irish Independent retains a 36% shareholding.

Merrion Securities analyst Rory Gillen said: “iTouch appears well placed to make a positive, albeit small, contribution to IN&M in 2004 and beyond.”

Shares in iTouch, now listed on the Techmark 100, FTSE Small Cap and FTSE All Share indices, closed up 0.75p at 33.75p.

iTouch chairman Ivan Fallon said the company had an excellent 2003, with an EBITDA (earnings before interest, taxes, depreciation and amortisation) profit of £1.0m in Q4 and £1.7m in the second half.

“The Movilisto acquisition in Spain in June has transformed the company, and we have successfully launched the Movilisto direct channel model into the UK, Ireland, South Africa and Morocco. Further expansion is planned over the coming months,” Mr Fallon said.

Davy Stockbrokers’ analyst Brendan Quinn said iTouch posted better than expected full-year results for 2003 and indicated that it has successfully launched its direct model into both Ireland and South Africa.

“Revenues for the quarter were £18.2m ahead of our expectations of £16.4m, primarily due to the success of Pop Idol in the UK. This resulted in iTouch generating £1m of EBITDA ... against our expectations of £910,000,” he said.

Mr Quinn said that for the full year iTouch posted revenues of £60.3m, ahead of expectations of £58.5m and up 79% year on year.

iTouch chief executive Wayne Pitout said the western European mobile data market is forecast to be worth €7.6bn in 2005, with mobile data expected to represent 50% of industry revenue growth in 2004 and 70% in 2005.

Mr Pitout also disclosed that during the year, a comprehensive cost reduction and restructuring programme was implemented and largely completed.

“Group wide head-count reduced from 382 at the start of the year to 297, despite the addition of 41 staff from Movilisto, an underlying reduction of 33% during the year,” he said.