iTouch exceeds targets

By Iain Scott, ITWeb group consulting editor

Johannesburg, 16 Mar 2001

London-listed iTouch, a South African-based provider of mobile information and transaction services, has exceeded its financial targets set at the time of its listing in August last year.

It has reported a lb9.1 million operating loss before other operating expenses for the period from 18 January 2000 to 31 December 2000.

Chairman Ivan Fallon says the company is in the early stages of development and is incurring losses as expected.

However, he is buoyant about the company`s achievements.

"iTouch has not only met but exceeded the financial targets set at the time of the flotation," he says. "We have had a very successful first year as a listed company, when we have expanded from our original base in SA to six countries, with another four already planned.

"The current financial year has begun well with continued strong trading, particularly in the UK, which is now the group`s largest contributor."

He says the iTouch model is proving itself, as indicated by rapidly growing revenues and demand for its products. "Cash outflow (pre acquisitions) was lb8.6 million in the period and we ended the year with cash of lb48.2 million. We believe we have adequate existing resources to achieve our goals."

Actual revenue for the year to 31 December was lb4.2 million, with second-half revenue of lb3.2 million. Adjusted revenue for the year, including first quarter pro forma figures, was lb4.5 million.

Gross profit came in at lb2.5 million. Goodwill amortisation amounted to lb4.8 million.

The company incurred a fully diluted loss of 6.8p per share.

Fallon says the established businesses in SA and Ireland performed well, as did its more recently created businesses in the UK, New Zealand and Australia.

"Our results also include a useful contribution from our South African e-commerce services subsidiary, DigitalMall, and a month`s contribution from our recently acquired PDA mobile applications company, Holliday Group. We also include the results of iTouch Israel as a joint venture."

He adds that the company is well on the road towards its goal of becoming a major international provider of value-added services to mobile consumers and corporate customers, by partnering with mobile operators and media companies.

"We are on track in rolling out our established business model internationally, continuing to grow our existing businesses and expanding further through strategic partnerships and acquisitions."

He says the company should benefit considerably from the introduction of enhanced mobile technologies such as GPRS and 3G and enhanced handset features.