Mobile value-added services provider iTouch, founded in Cape Town and listed on the London Stock Exchange, has halved its losses in 2002 despite increasing its revenue by 124% to lb33.6 million (R424 million) through acquisitions.
Wayne Pitout, iTouch chief executive and founder, says despite the market turmoil in the technology, media and telecommunications sector, iTouch`s losses declined for three consecutive quarters from lb3 million in the first quarter of 2002 to lb1.5 million in the fourth quarter.
Cash outflow for the year was lb9 million, excluding acquisitions, and the group ended the year with net cash of lb24.5 million.
He says although the tough trading conditions for value-added mobile services persist, channel opportunities continue to grow throughout the group. The advent and success of premium SMS in Europe is expected to be a catalyst for growth and Pitout expects iTouch will show a modest rise in revenue this year.
iTouch also announced the acquisition of Movilisto, a provider of premium SMS services in Spain, conditional upon approval of the acquisition by iTouch shareholders in May. The maximum consideration for Movilisto is 60 million euros, to be paid through the issue of the shares and cash.
Pitout says the acquisition will accelerate profitability and will position iTouch as one of the leading mobile value-added service providers in Europe.
Greg Brophy, iTouch SA CEO, says the local operation`s revenue growth was not as dramatic as in the previous year, but significantly improved its revenue mix.
"We are pleased to report that the sustainability of our revenue base has improved. This augers well for the current year and we expect growth in excess of 30% in 2003."
He says iTouch had sharpened its focus and is identifying and selecting its products more carefully. "We are able to achieve greater results with fewer products and services based on our centralised global platform, while continuing to expand our channels to market. We have also increased our infrastructure through partnerships and strategic relationships."
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