Globo plc ("Globo" or "the Group") Interim Results for the Six Months Ended 30 June 2015
September 29 2015 - 2:24PM
Business Wire
Globo plc (LSE-AIM: GBO) (OTCQX: GOBPY), the international
provider of Enterprise Mobility Management (EMM), mobile solutions
and software as a service (SaaS), is pleased to announce its
unaudited interim results for the six months ended 30 June
2015.
Financial highlights
- Revenue up 56% to €72.4 million (H1
2014: €46.5 million)
- GO!Enterprise revenue up 126% to €44.9
million (H1 2014: €19.9 million)
- CitronGO! and GO!Social revenue up 6%
to €21.3 million (H1 2014: €20.1 million)
- Telecom & SaaS revenue grew 16% YoY
to €5.0 million (H1 2014: €4.3 million)
- The Group continues to build on its
strong recurring revenue streams:
- GO!Enterprise EMM & MADP had a
renewal rate of the prior year’s licences of roughly 99%
- 68% of GO!Enterprise MBS project
revenue was generated by repeat orders
- H1 Gross profit margin increased to 59%
(H1 2014: 58%) primarily due to the increased proportion of direct
sales
- EBITDA increased 55% to €34.2 million
(H1 2014: €22.0 million)
- Last twelve months (LTM) EBITDA was
€63.1 million
- Profit before tax rose 37% to €22.0
million (H1 2014: €16.1 million)
- Earnings per share increased 14% to
€0.049 (H1 2014: €0.043)
- Net cash generated from operations
increased to €21.0 million (H1 2014: €16.6 million)
- Free cash flow1 of €7.2 million (H1
2014: €4.2 million)
- LTM free cash flow of €10.3
million
- Net cash position increased to €47.4
million (31 December 2014: €40.4 million)
1 Free Cash Flow (FCF). Free cash flow is calculated by taking
the net cash flow from operating and investing activities, adding
back the cost of acquisitions.
Operating highlights
- Significant growth in licence and end
user base:
- GO!Enterprise Enterprise Mobility
Management ("EMM") business-to-employee device licences installed
base up 93% to 1.1 million at the half year (30 June 2014: 0.569
million)
- GO!Enterprise Mobile Application
Development Platform ("MADP") business-to-consumer licences
installed base up 63% to 40.8 million (30 June 2014: 24.9
million)
- CitronGO! and GO!Social monthly active
users up 9% to 3.7 million (30 June 2014: 3.4 million)
- Renewal of approximately 50,000
GO!Enterprise EMM licences and an incremental purchase order from a
U.S. Fortune 100 company, worth US$1.2 million (€1.0 million).
- U.S. growth remains on track, with
expanded operations and headcount increases in the region. During
the period we strengthened our sales and marketing capabilities
with the addition of Keith Higgins as our U.S. Chief Marketing
Officer and the hiring of numerous sales and marketing
professionals. In order to attract additional talent, a software
development centre has been established in Pittsburgh,
Pennsylvania. The Group has also expanded the capabilities of its
Canfield, Ohio development centre.
- Globo secured a major contract for
numerous mobile application projects with a strategically
significant South Asian industrial conglomerate customer in June
2015. The initial contract value is in excess of US$1 million, and
the diversified nature of the customer offers additional future
opportunities for new projects and licence growth.
- New customers added in Q2 2015,
including eRevmax, CenClear, Northlands Police, Aegean Oil,
International Life, Lafarge, UBB Bank, Peoplecert and Watt &
Volt. These new customers follow strong contract wins in Q1 2015,
including the U.S. Army, ING, EMC, INTEL, Musananda (UAE), Vodafone
and Coca-Cola.
- Continued awards and recognition from
industry observers:
- Highlighted in Ovum’s 2015-16 Decision
Matrix for MADP Solutions as a major “Market Challenger” amongst
the 12 leading MADP vendors, with the potential to become a Tier-1
player
- Highlighted in Gartner’s 2015
Enterprise Mobility Management Suites Magic Quadrant
- Innovative Application Award in
February 2015 for the “EMBRYOGENESIS” app
- Recognition for our TUI app in March by
Tourism Awards 2015 in the category ‘Applications for smartphones
and tablets’
- Distinction at the Mobile Excellence
Awards 2015 in June for the mobile app “be inlife” (International
Life)
- Announcement at Mobile World Congress
in Barcelona of FIPS 140-2 certified encryption for GO!AppZone.
Globo is the only company to offer this level of security for such
a development platform.
- Launch in the U.S. of a Fully-Sponsored
Level 1 ADR with over-the-counter trading facilities on the OTCQX
platform, traded under the ticker GOBPY.
Situation in Greece
Since the end of June 2015, our Greek operations have faced the
challenges of the Greek political uncertainty in combination with
the impact on financial markets of slowing growth in China which
resulted in capital controls.
The Group has taken all relevant measures to avoid any
operational or financial impact, as previously announced. Our Greek
revenues in 2015 are estimated at between 6% and 7% of total
revenue and we do not see any potential impact on our results for
this year. The situation in Greece has now stabilised and our Greek
operations continue to function as normal.
Post period-end
- We have announced a €14 million
proposed acquisition of a Bring-Your-Own-Device (BYOD) and Mobile
Security software provider based in Europe. The acquisition target
offers a set of security solutions for the mobile industry with
strong focus on BYOD and Mobile Applications Security. It has a
successful track record with customers in the banking, finance and
public sectors, and has built a strong reseller network including
telecommunications companies, IT solutions providers and mobile
technology players. This acquisition is intended to enhance the
GO!Enterprise portfolio with certain aspects of security that are
not covered in the current GO!Enterprise platform, and provide
instant access to certain additional regulated financial markets.
Globo expects the acquisition to be completed in October 2015.
- Globo has entered into a major
partnership with I Love Velvet (ILV) Inc., based in New York, to
address the mobile POS (mPOS) market globally. Our combined mPOS
solution has been selected by a major International Bank to enable
its more than 2 million small business and professionals customers.
Official commercial launch is planned for Q1 2016 after the
completion of a pilot programme scheduled for Q4 2015.
Outlook
- Our positioning within the field of
Mobile Enterprise creates strong momentum for further growth in
enterprise customers and new project wins.
- Strong business momentum is expected
due to the traditionally stronger second half of the year and
continued US expansion.
- Our current cash position and cash flow
covers all of our operating requirements and will enable us to
pursue selective acquisition opportunities in the near term. In
order to grow the business through more sizeable acquisitions, we
continue our High Yield Bond discussions. Globo maintains a prudent
view on the methods of financing its acquisition led growth.
Commenting on the results, Costis Papadimitrakopoulos, CEO of
Globo, said:
“We are proud of the continued success of our growth strategy.
Over the course of just a few years, Globo has been positioned as
one of the leaders in the Mobile Enterprise space and our business
continues to evolve in a number of different business areas. Our
International operations and growing US presence are driving
opportunities for our customers and the Enterprise transformation
towards mobile systems and applications is accelerating.
“We remain committed to increasing shareholder value, both
through organic growth and strategic investments in technology,
expertise and market reach.”
A presentation to analysts and brokers hosted by Costis
Papadimitrakopoulos, Chief Executive Officer, and Dimitris
Gryparis, Financial Director, will be held at 10.30 on 29 September
2015 at 55 Old Broad Street, London, EC2M 1RX.
To join via conference call:
UK dial-in: 0800 368 0649Overseas dial-in: +44 20 3059
8125Access Code: Globo
To join via the website:
http://globoplc.com/interim-results-2015-presentation/
The slides for the presentation will be available on Globo’s
website:
http://www.globoplc.com/en-GB/results-and-presentations/
About Globo plc
Globo Plc is a global provider of complete enterprise mobility
solutions and SaaS. Our GO!Enterprise (EMM) and GO!AppZone (MADP)
offerings help businesses expand their engagement with employees
and customers through the mobile channel via a secure and
extensible environment that runs on all smart devices. The Group
operates internationally through subsidiaries and offices in the
U.S., U.K., Europe, Middle East and South East Asia. Globo was
included in the 2014 Gartner Enterprise Mobility Management Magic
Quadrant report, in Ovum's 2014-15 Decision Matrix for EMM
Solutions and 2015-16 Decision Matrix for MADP Solutions, and in
IDC's January 2015 report on Mobile Enterprise Application
Development Platforms. For more information visit
www.globoplc.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20150929006731/en/
Globo plcCostis Papadimitrakopoulos, CEODimitris
Gryparis, Finance DirectorMike Jeremy, IRO+44 20-7378-8828orRBC
Capital Markets(Nominated Adviser & Broker)Pierre Schreuder
or Ema Jakasovic+44 20-7653-4000orCanaccord Genuity(Joint
Broker)Simon Bridges or Emma Gabriel+44 20-7523-8000orBrunswick
GroupChris Blundell or Charles Pemberton+44 20-7404-5959
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