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 0649
Overseas dial-in: +44 20 3059 8125
Access 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.