Globo up 5% after posting rise in first-quarter revenue
Shares in Globo rose 5% on Wednesday after the mobile software and services company said it has seen a strong start to the 2015, with group revenue up 36% in the first quarter from last year amid strong demand for its mobile-based organiser app Go!Enterprise.
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Revenue grew to €23.7m, while earnings before interest, taxes, depreciation and amortisation rose 33% year-on-year to €13.4m from €10.1m in the first quarter of 2014.
The company said cash generated from operations increased to €13.5m from €1.9m a year earlier.
Key developments in the quarter included a number of important contract winds with customers such as ING, Vodafone and Coca-Cola as well as the renewal of approximately 50,000 GO!Enterprise licences and an incremental purchase order from a US Fortune 100 company worth $1.2m.
Globo chief executive officer Costis Papadimitrakopoulos said: “We are pleased to report a strong start to 2015 trading with materially improved cash generation during the quarter.”
“As our U.S. expansion continues to gather momentum, I expect our early successes in 2015 to continue through the remainder of the year,” he added.
RBC Capital Markets said: “Globo is in our view producing increasingly solid results which have met or exceeded our challenging expectations.”
“While we would not necessarily demand a high growth company like this to also produce meaningful amounts of free cash flow, Globo has been able to throw off cash for the last three years in a row and on our estimates will produce a material amount this year,” it said.