globo plc h1 2015 report

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RNSNumber:4740AGloboplc29September2015

Globoplc29September2015FORIMMEDIATERELEASE

GLOBOplc("Globo"or"theGroup")

INTERIMRESULTSFORTHESIXMONTHSENDED30JUNE2015

Globoplc(LSEAIM:GBO/OTCQX:GOBPY),the internationalproviderofEnterpriseMobilityManagement(EMM),mobilesolutionsandsoftwareasaservice(SaaS),ispleasedtoannounceitsunauditedinterimresultsforthesixmonthsended30June2015.Financialhighlights

Revenueup56%to72.4million(H12014:46.5million)oGO!Enterpriserevenueup126%to44.9million(H12014:19.9million)oCitronGO!andGO!Socialrevenueup6%to21.3million(H12014:20.1million)oTelecom&SaaSrevenuegrew16%YoYto5.0million(H12014:4.3million)

TheGroupcontinuestobuildonitsstrongrecurringrevenuestreams:

oGO!EnterpriseEMM&MADPhadarenewalrateoftheprioryear'slicencesofroughly99%

o68%ofGO!EnterpriseMBSprojectrevenuewasgeneratedbyrepeatorders

H1Grossprofitmarginincreasedto59%(H12014:58%)primarilyduetotheincreasedproportionofdirectsales

EBITDAincreased55%to34.2million(H12014:22.0million)Lasttwelvemonths(LTM)EBITDAwas63.1millionProfitbeforetaxrose37%to22.0million(H12014:16.1million)Earningspershareincreased14%to0.049(H12014:0.043)Netcashgeneratedfromoperationsincreasedto21.0million(H12014:16.6million)

Freecashflow1of7.2million(H12014:4.2million)LTMfreecashflowof10.3millionNetcashpositionincreasedto47.4million(31December2014:40.4million)

1FreeCashFlow(FCF).Freecashflowiscalculatedbytakingthenetcashflowfromoperatingandinvestingactivities,addingbackthecostofacquisitions.

Operatinghighlights



Significantgrowthinlicenceandenduserbase:

o GO!EnterpriseEnterpriseMobilityManagement ("EMM") businesstoemployeedevice licences installed base up 93% to 1.1 million at the half year (30 June2014:0.569million)

o GO!EnterpriseMobileApplicationDevelopmentPlatform("MADP")businesstoconsumer licences installed base up 63% to 40.8 million (30 June 2014: 24.9million)

o CitronGO! andGO!Socialmonthly active users up 9% to 3.7million (30 June2014:3.4million)

Renewal of approximately 50,000GO!Enterprise EMM licences and an incrementalpurchaseorderfromaU.S.Fortune100company,worthUS$1.2million(1.0million).

U.S.growthremainsontrack,withexpandedoperationsandheadcountincreasesintheregion.DuringtheperiodwestrengthenedoursalesandmarketingcapabilitieswiththeadditionofKeithHigginsasourU.S.ChiefMarketingOfficerandthehiringofnumeroussales and marketing professionals. In order to attract additional talent, a softwaredevelopment centre has been established in Pittsburgh, Pennsylvania. TheGroup hasalsoexpandedthecapabilitiesofitsCanfield,Ohiodevelopmentcentre.

Globo secured a major contract for numerous mobile application projects with astrategicallysignificantSouthAsianindustrialconglomeratecustomerinJune2015.Theinitial contract value is in excess of US$1million, and the diversified nature of thecustomeroffersadditionalfutureopportunitiesfornewprojectsandlicencegrowth.

Newcustomersadded inQ22015, includingeRevmax,CenClear,NorthlandsPolice,AegeanOil, InternationalLife,Lafarge,UBBBank,PeoplecertandWatt&Volt.Thesenew customers follow strong contractwins inQ1 2015, including theU.S.Army, ING,EMC,INTEL,Musananda(UAE),VodafoneandCocaCola.

Continuedawardsandrecognitionfromindustryobservers:

oHighlighted inOvum's201516DecisionMatrix forMADPSolutionsasamajor"MarketChallenger"amongstthe12leadingMADPvendors,withthepotentialtobecomeaTier1player

o Highlighted in Gartner's 2015 Enterprise Mobility Management Suites MagicQuadrant

oInnovativeApplicationAwardinFebruary2015forthe"EMBRYOGENESIS"app

oRecognitionforourTUIappinMarchbyTourismAwards2015inthecategory'Applicationsforsmartphonesandtablets'

oDistinctionattheMobileExcellenceAwards2015inJuneforthemobileapp"beinlife"(InternationalLife)

Announcement at Mobile World Congress in Barcelona of FIPS 1402 certifiedencryptionforGO!AppZone.Globoistheonlycompanytooffer this levelofsecurityforsuchadevelopmentplatform.

Launch in theU.S. of aFullySponsoredLevel 1ADRwithoverthecounter tradingfacilitiesontheOTCQXplatform,tradedunderthetickerGOBPY.

SituationinGreece

Since the end of June 2015, our Greek operations have faced the challenges of the Greekpolitical uncertainty in combination with the impact on financial markets of slowing growth inChinawhichresultedincapitalcontrols.

The Group has taken all relevant measures to avoid any operational or financial impact, aspreviously announced.OurGreek revenues in 2015areestimatedat between6%and7%of



totalrevenueandwedonotseeanypotentialimpactonourresultsforthisyear.ThesituationinGreecehasnowstabilisedandourGreekoperationscontinuetofunctionasnormal.

Postperiodend

Wehaveannounceda14million proposedacquisition of aBringYourOwnDevice(BYOD)andMobileSecuritysoftwareproviderbased inEurope.Theacquisition targetoffersasetofsecuritysolutionsforthemobileindustrywithstrongfocusonBYODandMobile Applications Security. It has a successful track record with customers in thebanking, finance and public sectors, and has built a strong reseller network includingtelecommunications companies, IT solutions providers and mobile technology players.ThisacquisitionisintendedtoenhancetheGO!Enterpriseportfoliowithcertainaspectsofsecurity that arenot covered in the currentGO!Entepriseplatform,andprovide instantaccesstocertainadditionalregulatedfinancialmarkets.GloboexpectstheacquisitiontobecompletedinOctober2015.

GlobohasenteredintoamajorpartnershipwithILoveVelvet(ILV)Inc.,basedinNewYork,toaddressthemobilePOS(mPOS)marketglobally.OurcombinedmPOSsolutionhasbeenselectedbyamajorInternationalBanktoenableitsmorethan2millionsmallbusinessandprofessionalscustomers.OfficialcommerciallaunchisplannedforQ12016afterthecompletionofapilotprogrammescheduledforQ42015.

Outlook

OurpositioningwithinthefieldofMobileEnterprisecreatesstrongmomentumforfurthergrowthinenterprisecustomersandnewprojectwins.

Strongbusinessmomentumisexpectedduetothetraditionallystrongersecondhalfof

theyearandcontinuedUSexpansion.

Ourcurrentcashpositionandcashflowcoversallofouroperatingrequirementsandwillenableustopursueselectiveacquisitionopportunitiesinthenearterm.Inordertogrowthe business through more sizeable acquisitions, we continue our High Yield Bonddiscussions.Globomaintainsaprudentviewon themethodsof financing itsacquisitionledgrowth.

Commentingontheresults,CostisPapadimitrakopoulos,CEOofGlobo,said:"Weareproudof thecontinuedsuccessofourgrowthstrategy.Over thecourseof justa fewyears,GlobohasbeenpositionedasoneoftheleadersintheMobileEnterprisespaceandourbusiness continues to evolve in a number of different business areas. Our Internationaloperations and growing US presence are driving opportunities for our customers and theEnterprisetransformationtowardsmobilesystemsandapplicationsisaccelerating.Weremaincommittedtoincreasingshareholdervalue,boththroughorganicgrowthandstrategicinvestmentsintechnology,expertiseandmarketreach."

ApresentationtoanalystsandbrokershostedbyCostisPapadimitrakopoulos,ChiefExecutiveOfficer,andDimitrisGryparis,FinancialDirector,willbeheldat10.30on29September2015at55OldBroadStreetStreet,London,EC2M1RX.Tojoinviaconferencecall:UKdialin:08003680649Overseasdialin:+442030598125AccessCode:GloboTojoinviathewebsite:http://globoplc.com/interimresults2015presentation/TheslidesforthepresentationwillbeavailableonGlobo'swebsite:http://www.globoplc.com/enGB/resultsandpresentations/Forfurtherinformationpleasecontact:Globoplc +442073788828CostisPapadimitrakopoulos,CEODimitrisGryparis,FinanceDirector



MikeJeremy,IRORBCCapitalMarkets +442076534000(NominatedAdviser&Broker)

PierreSchreuderorEmaJakasovic

CanaccordGenuity +442075238000(JointBroker)SimonBridgesorEmmaGabriel

BrunswickGroup

ChrisBlundellorCharlesPemberton +442074045959AboutGloboplcGlobo Plc is a global provider of complete enterprise mobility solutions and SaaS. OurGO!Enterprise (EMM) and GO!AppZone (MADP) offerings help businesses expand theirengagement with employees and customers through the mobile channel via a secure andextensible environment that runs on all smart devices. The Group operates internationallythrough subsidiaries and offices in theU.S.,U.K.,Europe,MiddleEast andSouthEastAsia.Globowasincludedinthe2014GartnerEnterpriseMobilityManagementMagicQuadrantreport,inOvum's201415DecisionMatrix forEMMSolutionsand201516DecisionMatrix forMADPSolutions, and in IDC's January 2015 report on Mobile Enterprise Application DevelopmentPlatforms.Formoreinformationvisitwww.globoplc.com.CHIEFEXECUTIVEOFFICER'SREPORTOverviewInthesixmonthsto30June2015Globomaintainedstrongoperationalmomentum,drivenbyourEnterprise Mobility product suite, Mobility Business Solutions (MBS) offering, and increaseddirectsalesleadingtostrongrevenuegrowthandcashgeneration.Themainareasoffocusduringtheperiodhavebeenthe:

IncreaseofourdirectsalespersonnelandexecutioncapacityIncreaseofourtechnicalcapabilitiesintheimplementationofstrongEnterpriseMobility

solutionsdrivenbysecurityandMobileAppsExpansionofourU.S.activitiesandmarketpenetrationOptimisationofourSalesandMarketingprocessestoattractnewdirectcustomersand

achievestrongerengagementwithcrosssellingandupsellingopportunities Establishmentofstrongpartnershipsthatwillhelpusbuildastrongercommercialand

innovationpathEvaluationofacquisitiontargetsthatwillhelpthecompanyscaleup Optimisation of our international presence and operational platform to minimise the

exposure to operational and software development costs, thus keeping the underlyingmarginsataverystronglevel

ContinuousinnovationinnewproductsandexpansionofexistingonesDuring the period we continued to improve our competitive position in an enterprise mobilitymarketwhich isbeingdrivenbystrongdemand forenterpriseuseofsmartphonesand tabletsandincreasinginterestinmobilebasedapplications.Our Enterprise and Consumer mobile product lines continued to deliver significant growth,formingthebasisforfuturerecurringrevenuesandprofitgenerationfortheGroup.As expected our Enterprise Business is now the most dominant component of our revenue,representing62%ofourtotalsales,drivingourworkingcapitalperformanceandimprovingcashgeneration.We saw strong underlying demand and new customer wins for our GO!Enterprise platform,leading to revenue growth of 126% to 44.9 million (H1 2014: 19.9 million). Our consumermobility revenue (CitronGO!andGO!Social) alsoperformedwell, growing6% to21.3million(H12014:20.1million).Overall,Grouprevenuegrewby56%to72.4million(H12014:46.5million).EBITDAincreasedby55% to34.2million (H12014:22.0million),whilstprofit before taxgrew5.9million to22.0million(H12014:16.1million).



FreeCashFlow2totalled7.2millioninthefirsthalfcomparedto4.2millioninthesameperiodlastyear.Thisisareflectionoftheshift inrevenuebalancetowardsenterprisemobilitywithanassociatedimprovementinthepaymentcycle.2FreeCashFlow(FCF).Freecashflowiscalculatedbytakingthenetcashflowfromoperatingandinvestingactivities,addingbackthecostofacquisitions.

CustomerandcontractwinsThroughoutthefirsthalfof2015wehavebeenwinningnewcustomersinadditiontonewusersandbusinessfromourexistingcustomers.Significant new customers include eRevmax, CenClear, Northlands Police, Aegean Oil,International Life, Lafarge, UBB Bank, Peoplecert and Watt & Volt, U.S. Army, ING, EMC,INTEL,Musananda(UAE),VodafoneandCocaCola.Inaddition,wesecuredamaterialSouthAsian industrialconglomeratecustomer inJune2015fornumerousmobileapplicationprojects.ThiscustomerisalreadycontributingastrongrevenuestreamwhichisexpectedtosurpassUS$1millionduring2015,withstrongfuturepotential.These additions augment an interim base of approximately 3,500 enterprise customers andassociatedrecurringrevenuestreamsfromGO!Enterpriseprojectsandlicences.GO!EnterpriseBusinessrecurrenceAs expectedGO!Enterprise has become our dominant revenue stream. This brings improvedrecurringrevenuevisibilitywith97%licenceretention,withalmostno licencechurnanda65%repeatprojectratio.U.S.ExpansionGlobocontinueditsU.S.growthbyexpandingoperationsandincreasingheadcountintheregion.DuringtheperiodwestrengthenedoursalesandmarketingcapabilitieswiththeadditionofKeithHiggins as our U.S. ChiefMarketingOfficer and the hiring of numerous sales andmarketingprofessionals. In order to attract additional talent, a software development centre has beenestablished in Pittsburgh, Pennsylvania. The Group has also expanded the capabilities of itsCanfield,Ohiodevelopmentcentre.First half revenue in the U.S. increased by 611% to 15.2 million (H1 2014: 2.1 million)contributing21%oftotalgrouprevenue.WeconsidertheU.S.ourmostimportantmarketasitrepresents60%oftheglobalEMM+MADPmarket, which in 2015 is expected to reach $4.6 billion. Our main focus remains the U.S.Enterprisemidtiermarket(companieswithrevenuesofbetween$10millionand$1billion)whichisinitselfequivalenttothefifthlargesteconomyintheworld.OurU.S.operationsareheadquarteredinPaloAltowithadditionalofficesinSanFrancisco,NewYork,OhioandPittsburgh,withrepresentativeslocatedinCanada,LosAngelesandAtlanta.Wecurrentlyemployapproximately29%ofourglobalheadcountintheU.S.RecognitioninGartner's"MagicQuadrantforEnterpriseMobilityManagementSuites"and"MagicQuadrantforMobileApplicationDevelopment"reportsDuringtheperiodweachievedinclusioninboththeEMMandMADPGartnerMagicQuadrant,being officially one of the 4 players globally that has presence in both reports. This is atremendousachievementandhighlightsourcommitmenttoourinvestmentstrategy.StrategyInvestmentsandAcquisitionsAs theMobileEnterpriseMarket evolvesweobserve continuing consolidation favouring largerentities.Wedefinethismarketasdividedintothreelevelseachofalmostequalscale,asfollows:

Toptier global playerswho providemobility solutions as part of their overall productportfolio,withtheconsequencethattheycannotofferthefocusof"pureplay"alternatives

Agroupofleading"pureplay"playerswhoprovidemainlyEnterpriseMobilitySolutionsastheirmainstreambusiness

A lower tier of smaller technology or service companies that offer innovativemobile



solutionsandservicesbutwithlimitedabilitytoexecuteorgrow.Globo'sstrategy is toestablish leadership in the"pureplay"segment throughacombinationoforganicgrowth,backedbyproductinvestments,andselectiveacquisitions.TheGrouphasbeen targetinga seriesofacquisitionssince theendof2014andwehope toprogresscertainof theseover thecomingmonths.Wehaverecentlyannounced theproposedacquisitionofaninnovativeBYODMobileSecurityCompanyinEuropefor14million.Ourcurrentcashpositionandcashflowcoversallofouroperatingrequirementsandwillenableus topursueselectiveacquisitionopportunities in thenear term. Inorder togrowthebusinessthroughmoresizeableacquisitions,wecontinueourHighYieldBonddiscussions.TheCompanymaintainsaprudentviewonthemethodsoffinancingitsacquisitionledgrowth.LaunchofnewproductsandservicesDuring the first half of the yearwe expanded the capability of ourGO!Enterprise offering inmanydifferentareas:

AtMobileWorldCongress (MWC) in Barcelona in Februarywe announced the fullavailability of our FIPS 1402 certified Mobile Application Development Platform(GO!AppZone)beingtheonlycompanyworldwideofferingsuchasolution.

DuringJunewereleasedourGO!AppZonedeployservicewhichnowoffersconnectivityand control of mobile apps through the GO!AppZOne cloud in a "pay as you go"transactionalmodel.ThisimprovementisexpectedtodrivesignificantdemandforSMEsdeployingmobileappsinamorecostefficientway

DuringJunewecompletedGO!EnterpriseWindows10developmentincooperationwithMicrosoftandbeingoneofthefirstvendorstosupportthenewOperatingSystemfromitsfirstdayoflaunch.

Development of further product enhancements and new features has kept us busyduringH12015andnewproductreleasesareexpectedthisyear.

Operationalperformance:GO!Enterprise,CitronGO!andGO!SocialDuringtheperiod,ourcombinedmobilesolutionsrevenuesgrew65%to66.2millioncomparedto40.0millioninthesameperiodlastyear.GO!EnterpriseOur expansion plans are underpinned by the combination of global growth in demand forsmartphonesand tabletsand theBYOD trend.This isamarketwhich IDCpredictswill reachUS$7.0billionby2017.The first half of the year showed our commitment to continued product expansion andimprovement,withthelaunchofGO!AppZoneStudioandGO!EnterpriseWorkSpace.Our fully integrated solutions of mobile Security, Mobile Productivity and Mobile ApplicationDevelopment Platform in combination with a strong consulting and services offering isunderpinning our future performance and opens up significant opportunities within eachcustomer.Wecontinuetobuildourdirectsalesforce,notablyintheU.S.andUKandweareexpandingourMBScapability,addingpersonnelinGreeceandIndiawherelabourcostsaremorefavourable.In themeantimeweare rampingupourcustomer facingconsultants in theU.S.andWesternEuropewhileexpandingourindirectrelationshipswithresellersandsoftwareintegrators.RevenuefromGO!Enterpriseisrecognisedintwocategories:

Via licensingoptionsonaperuser/devicebasis,whichare renewedannuallyoronaperpetualbasis.Theseareaccompaniedbysoftwareassuranceservicecontracts.

ViaconsultingandimplementationservicesforthedevelopmentoftailormadesolutionsandappsforcustomersorpartnerswithintheMBSdivision.

Thetableprovidesabreakdownofrevenuedriversinrespectivebusinessdivisions:

H12015Licences

InstalledBase3

H12015Revenue

H12014Licences

InstalledBase3H12014Revenue

EnterpriseMobilityManagement(EMM)Licences4

1.1million 11.4million 569,500 5.0million

MobileApplicationDevelopment



DevelopmentPlatform(MADP)Licences5

40.8million 14.0million 24.9 4.9million

MobilityBusinessSolutions(MBS)Services6

N/A 19.5million N/A 10.0million

TOTAL 44.9million 19.9million

3DisclosednumberofInstalledBaseisnotequaltothelicencessoldduringtheperiod.Itrepresentsthetotalnumberoflicencesbeingactiveatthespecifictimeincludinglicencessoldduringtheperiodandlicencesthatareactiveandhavebeensoldinpreviousperiods.4EnterpriseMobilityManagement(EMM)licensesincludeGO!EnterpriseOffice,Mobilizer,BOX,MDM,Sync,LinkBusinesstoEmployeelicenses,soldonapernameddevicemodel.5MobileApplicationDevelopmentPlatformlicensesincludeGO!EnterpriseReach(BusinesstoConsumerlicenses)soldinblocksof50,000or100,000devices.6MobilityBusinessSolutions(MBS)relatedtoGO!EnterpriseProjectServicesWeareplanningtolaunchsignificantaddonstoourGO!EnterpriseandGO!AppZoneplatformstappingintoseveral"hot"areasofthemarketsuchasInternetofThings(IoT),WearabledevicesaswellintoMachinetoMachine(M2M)communicationswhereweseeatremendousopportunityfor future growth. In themeantimewe are expanding ourGO!AppsEcosystemof readymadeapps thatgive instantaccess tocustomerswhowantanoutof theboxsolution thatworks forthem.The expansion of our GO!AppZone (MADP) family of products with the introduction ofGO!AppZone cloud services are offering Application Test services, Application Native Buildservices for iOS,Android,Windows8andBlackBerryaswellasaCloudConnector (MBAAS)whichcaninterconnectapplicationsandBackEndSystemsinasecureandflexibleway.Wearebuildingadevelopercommunityofusersandthefollowonpotentialforrevenuestreamsbuiltonthedesiretosecure,deployandmonetisetheresultingapps.We are confident that the breadth of services thatGO!Enterprise offers (EMM andMADP)combined with the momentum of demand for mobile first services and our US sales anddistribution initiative inparticularwill furtherenableGlobo tobuildon its recognisedpositionasoneoftheleadingmobileenterprisesoftwareandsolutionproviders.CitronGO!/GO!SocialCitronGO!/GO!Socialsawfirsthalfrevenueof21.3million(H12014:20.1million),up6%fromthepreviousyear,andrepresenting29%of totalGrouprevenuecompared to43%inH12014.Featurephonescontinuetorepresentasignificantportionofthemobiledevicesusedaroundtheworld and mostly in the emerging markets. Several factors such as cost, energy and dataconsumptionofsmartphonesandslowmobilenetworkinfrastructuresintheemergingworld,limitthe entrance of smartphones,making CitronGO! a favourable solution for those who want toenjoysocialnetworks,chatandemailfromafeaturephone.GloboprovisionstheCitronGO!andGO!Socialofferingonawhitelabelbasiswithanemergingmarketsemphasis(giventhecontinuingprevalenceoffeaturephoneuse).Revenuesaregenerated fromservicesprovided toendusersviaMobileValueAddedServiceProviders (MVASPs) and Mobile Network Operators (MNOs) as part of their own contentofferings. As of 30 June 2014, CitronGO! and GO!Social were being offered in countriesthroughoutEurope,Africa,LatinAmerica,AsiaandtheMiddleEast,principallyviamobilevalueadded service providers (MVASPs) as part of their own subscription application and contentofferings.Attheendofthefirsthalfwehadrecorded7.6millionuniqueusersandregistered3.7million as active on amonthly basis. Globo receives a fixed service fee per active user on amonthlybasis.TelecomS.a.a.SSolutionsTelecomS.a.a.SSolutionssawfirsthalfrevenueof5.0million(H12014:4.3million),anincreaseof16%onthepreviousyear.Thisstronggrowthresultedfromutilisationofinvestmentswe have made in the previous two years in order to enrich our service portfolio with new



we have made in the previous two years in order to enrich our service portfolio with newservices.InthisdivisionGloboprovidesitsWiPLUSWiFiservice,afullymanageddeploymentforhotels,airports or marinas etc., and similar locations, for which venue owners pay a monthly fee.Secondly, viaReachFurtherCommunicationsGlobo providesMVASServices toMNOsandotherVASPs.Finally,GloboMobileInc.providesothertelecomservicestointernationaltelecomcarriers.Globo continues toexpand its product offeringwithin this segment,which isEBITDAenhancing to overall performance and supports the Group's overall mobile offering whilstincreasingmarketfootprint.OutlookGlobocontinues itsgrowthtrajectory forbothrevenuesandprofitsandfreecashflowwhile itsoperational performance is underpinned by growing recurring revenues from its EnterpriseMobilityproductsandservices.OurEnterprisesolutionsarerecognisedfortheirqualityandbreadthofcompletenessandvision,which fuel our future growth as ever more Enterprises use the mobile channel to increaseemployeeeffectivenessandcustomerengagement.Thefirsthalfof2014sawacontinuedgrowthinourUSrevenuesandoperationswherewethinkthereisagreatpotentialinthefutureandwehavebeeninvestingheavily.Inthemeantimewetake advantage of our geographic diversification tomaximize returns andminimize expenses,thusachievingaverystrongoperatingresult.ThecontinuousdevelopmentandnewinnovationswithinofourproductlinedrivesfuturedemandandwearesatisfiedthatwearenowrecognizedasoneofthemostcompletevendorsintheMobileEnterprisespace.Since thebeginningof theyearwehavebeenevaluatingseveralacquisitionopportunities thatwe feel will add significant value to the Group. We have recently announced the proposedtransactionforthefirstone.Webelievethatourorganicgrowth,strongtechnologyofferingandourabilitytointegratenewbusinessesintheshorttermwillresultinfutureacquisitionsactingasamultiplyingfactorforourperformance.We are now in the traditionally stronger second half of the year and we look forward to anexcitingperiodofgrowthfortheGroupin2015andbeyond.CostisPapadimitrakopoulosChiefExecutiveOfficer

FinancialReviewTheGroupdeliveredastrongfinancialperformanceacrossallbusinessareasinthefirsthalfof2015.Revenue increasedby56% to72.4million (H12014: 46.5million), reflectingpredominantlygoodgrowthinthemobilesectoroftheGroup.Grossprofitincreasedby59%to42.96million(H12014:27.0million)withagrossmarginof59.3%(H12014:58%).Earningsbeforeinterest,tax,depreciationandamortisation(EBITDA)increased55%to34.19million(H12014:22.04million).Depreciationandamortisationofnoncurrentassetswas10.96million(H12014:5.61million),reflectingsignificantinvestmentinproductdevelopment.Operatingprofitincreasedby41%to23.23million(H12014:16.43million).Profit before taxwas 22.00million, an increase of 37% over the same period last year (H12014:16.06million).Thetaxationchargefortheperiodwas3.57million(H12014:0.43million).Basicearningspersharefortheperiodincreasedby14%to0.049(H12014:0.043).Attheendofthecurrentperiod,theGrouphadnetassetsof198.20million(H12014:155.57million) and total assets of 283.67 million (H1 2014: 203.94 million). Total assets included78.72 million in noncurrent assets, 5.38 million in inventories and work in progress, and95.21 million in trade and other receivables, prepayments and other current assets. Totalliabilitiesincreasedby77%to85.47million(H12014:48.36million).



liabilitiesincreasedby77%to85.47million(H12014:48.36million).On30June2015,cashandcashequivalentstotalled104.36million(30June2014:67.78million)andnetcashwas47.43million.Improvedworkingcapitalperformanceresultedinoperatingcashflowof23.02million(H12014:18.23million).Netoperatingcashflowincreasedby27%to21.04million(H12014:16.56million).During the period a total of 14.22million (H1 2014: 12.69million) was invested in productdevelopmentandinfrastructure,mainlyrelatingtothemobileproductsandservicesoftheGroup.TheGroup has recorded FreeCash Flow7 of 7.2million (H1 2014: 4.2million) due to theincreaseinGO!Enterprisesaleswhichhaveashortercollectioncycle.During the period, and prior to the expiry of the available drawdown, the Group used theremaining term loan under the Barclays & EWUB facility. The use of the loan proceeds areintendedtofundthecontemplatedacquisitionsthatwehavejustrecentlystartedtoexecute.7FreeCashFlow(FCF).Freecashflowiscalculatedbytakingthenetcashflowfromoperatingandinvestingactivities,addingbackthecostofacquisitions.

Ourliquiditymanagementhasresultedinseveralchangesduringtheperiod:

Sincethebeginningoftheperiodwehaveprogressivelytransferredourreservestobankaccountswithstrongerratingthanthepreviousones.TheGroupholdsbankaccountswithseveralbanksintheUK,Switzerland,USA,Dubai,India,GreeceandCyprus.At30June2015theGroupheldcashinbankswiththefollowingcreditratings:

CreditRating

Asat30June

2015

'000

Asat31December

2014

'000

A+,A,AA,Aa3* 103,489 9,977B3,B,B,Baa3 869 72,774CA 11Total 104,358 82,762*BankslocatedinUK,USandSwitzerland

Inaneffort tominimizeexposure toasinglecurrencyandFX fluctuations, theGroupholds cash balances in several currencies given its diversified collections and paymentneeds.At30June2015thedistributionofbalancespercurrencywasthefollowing:

Currency

Asat30June

2015

Euro() 57.1%BritishPound() 20.8%USDollar($) 21.9%LocalCurrencies(Rupiahs,Dirhams) 0.2%Total 100%

GloboTechnologiesS.Aperformance&outlookRevenue atGloboTechnologiesS.A., an associate of theGroup, increased by 3% to 19.35million(H12014:18.74million).Profitaftertaxwas0.78million(H12014:1.71million),withprofitattributabletotheGroupof0.38million(H12014:0.84million).TheGroupreceived,on



schedule, the fifth instalment, of 1.65million, from the acquiring entity (GMBOHoldings Ltd,previouslyZipersiConsultingLtd).Thiscomprised1.48millionofprincipaland173Kininterestdue,inrespectoftheGroup'sdivestmentof51%ofGloboTechnologiesS.A.,theebusinessandsoftwareservice.Weexpect thatoutstandingpayments, totalling6.7million, tobereceived inthreeinstalmentsuptotheendof2016,willbecollectedontimeFinancialperformancemetricsAs our Group is continuing its international growth and in the need of providing additionalfinancialanalysisofcertainKPIs thatcomplywithdifferentreportingstandards(NonIFRS)weareprovidingasetoffinancialKPIsanalysisthatexaminesseveralareasofourworkingcapitalperformanceinordertoevaluatethe:DaysSalesOutstanding(DSO)We define DSO as the result of multiplying 365 days by outstanding qualifying receivables(relatedtocustomersales)dividedbythetotalvalueofraisedinvoicesforthelasttwelvemonths.Forthelasttwelvemonthsended30June2015theDSOcalculationisthefollowing:

LTMH12015

'000

LTMH12014

'000

Qualifyingtradereceivables* 49,194 27,678LTMInvoicesIssued 139,450 88,900DSOs 129 114

*Qualifyingtradereceivablesincludetradereceivable,notesreceivable,chequesreceivableandexcludeprepaymentstovendors

Theincreaseof15daysinDSOsismainlyaresultofinvoiceageingasoutlinedintheRVWAA(seebelow)calculationbelow.ReceivablesVolumeWeightedAverageAging(RVWAA)

Given the seasonality of stronger sales duringQ2 andQ4 of each year, it is important toexaminethevolumeweightedaverageageingofreceivablesinordertojudgethereceivablescollectabilityqualityandcontrollingandcollectionsexecutionperformance.ThiswayweevaluatetheoverallreceivablescollectionperformanceasafinancialKPIFortheperiodended30June2015theRVWAAcalculationisthefollowing:

Upto

3months

'000

Between36months

'000

Between612months

'000

Over12months

'000

QualifiedtradereceivablesH12015* 37,835 9,509 1,850

QualifiedtradereceivablesH12014* 7,400 6,806 12,642 830

RVWAAH12015 71Days

RVWAAH12014 185Days*Qualifyingtradereceivablesincludetradereceivable,notesreceivable,chequesreceivableandexcludeprepaymentstovendorsAs shownabove, theGrouphas reduced theRVWAAby62% to71days (H12014: 185days) as a result of increased controls and execution in collection policies and customerrelations.

NonIFRSAdjustmentstoGrossProfit,OperatingProfit,PBT,EBITDA,OperatingCash,InvestingandFreeCashflowduetoR&Dexpenditure

The Group IFRS accounting policy follows the IAS 38 standard for the capitalization of



product Research & Development expenses. As a result the costs for developing ourproductsarecapitalizedandareamortizedoveraperiodof3years.WeherebypresentnonIFRSadjustmentsinseveralKPIsofourfinancialperformanceaftertheadjustmentofR&Dexpensesbeingdirectlyexpensed (insteadofbeingcapitalizedandthenamortised).

FinancialKPIsH12015

'000

H12014

'000

IFRSGrossProfit 42,959 27,001NonIFRSR&DAdjustments 10,515 5,289NonIFRSGrossProfit 53,474 32,290NonIFRSGrossProfitMargin 74% 69%

IFRSOperatingProfit 23,230 16,340NonIFRSOperatingProfitAdjustments (3,455) (6,910)NonIFRSOperatingProfit 19,775 9,430NonIFRSOperatingProfitMargin 27% 20%

IFRSProfitBeforeTax 22,001 16,058NonIFRSR&DAdjustments (3,455) (7,000)NonIFRSEarningsBeforeTax 18,546 9,058NonIFRSEarningsBeforeTaxMargin 26% 19%

EBITDA 34,191 21,952NonIFRSR&DAdjustments (13,970) (12,199)NonIFRSEBITDA 20,221 9,753NonIFRSEBITDAMargin 28% 21%

IFRSNetOperatingCashFlow 21,039 16,559NonIFRSR&DAdjustments (13,970) (12,289)NonIFRSOperatingCashFlow 7,069 4,270

IFRSInvestingCashFlow (14,005) (12,970)NonIFRSR&DAdjustments 13,970 12,289NonIFRSOperatingCashFlow (35) (681)

FreeCashFlow 7,192 4,216NonIFRSR&DAdjustments 0 0NonIFRSFreeCashFlow 7,192 4,216

DimitrisGryparisChiefFinancialOfficer8FreeCashFlow(FCF).Freecashflowiscalculatedbytakingthenetcashflowfromoperatingandinvestingactivities,addingbackthecostofacquisitions.

CONSOLIDATEDSTATEMENTOFCOMPREHENSIVEINCOMEForthe6monthsended30June2015 Sixmonths

Sixmonths Year

ended ended ended30June 30June 31December

2015 2014 2014

'000 '000 '000



(unaudited) (unaudited) (audited)Revenue(Note2) 72,426 46,499 106,386Costofsales (29,467) (19,498) (43,604)

GrossProfit 42,959 27,001 62,782Otheroperatingincome 1,612 3,092 204Distributionexpenses (9,123) (2,929) (8,547)Administrativeexpenses (8,063) (6,021) (15,000)Otheroperatingexpenses (4,155) (4,713) (2,118)

OperatingProfit 23,230 16,430 37,321Financeincome 368 347 792Financecosts (1,981) (1,554) (4,125)Shareofgain/(loss)ofassociate 384 835 1,715

ProfitbeforeTax 22,001 16,058 35,703Taxation (3,573) (435) (692)

Profitfortheperiodfromoperations 18,428 15,623 35,011

Total 18,428 15,623 35,011Othercomprehensiveincome

Exchangedifferencesontranslatingforeign 3,779 2,103 2,815operations

Othercomprehensiveincomefortheperiod,netoftax 3,779 2,103 2,815

Totalcomprehensiveincomefortheperiod 22,207 17,726 37,826

Attributableto:

EquityholdersoftheCompanyfromoperations 22,207 17,726 37,826

EarningspershareforprofitfromcontinuingoperationsattributabletotheequityholdersoftheCompanyBasicanddilutedearningspersharetotaloperations(pershare)(Note3) 0.049 0.043 0.094

CONSOLIDATEDSTATEMENTOFFINANCIALPOSITIONAt30June2015

Asat Asat Asat30June 30June 31December

2015 2014 2014'000 '000 '000

(unaudited) (unaudited) (audited)ASSETSNonCurrentAssetsProperty,plantandequipment 2,619 2,692 2,776Intangibleassets 49,243 39,849 45,260Goodwill 7,615 9,019 7,615Deferredtaxassets 640 394 481Otherreceivables 4,607 7,452 6,045Investmentinanassociate 13,723 12,459 13,339



Otherinvestments 276 51 118

TotalNonCurrentAssets 78,723 71,916 75,634

CurrentAssets

Inventoriesandworkinprogress 5,382 5,642 4,870Tradereceivables(Note4) 54,495 32,958 50,788Otherreceivables 4,868 3,174 4,234Othercurrentassets 35,845 22,465 21,101Cashandcashequivalents 104,358 67,780 82,825

TotalCurrentAssets 204,948 132,019 163,818

TOTALASSETS 283,671 203,935 239,452

EQUITYANDLIABILITIES

Shareholders'EquityOrdinaryshares 4,653 4,653 4,653Sharepremium 65,890 65,890 65,890Otherreserves 5,440 5,115 5,440Translationreserve 6,631 2,140 2,852Retainedearnings 115,590 77,774 97,162

TotalEquityCapitalandReserves 198,204 155,572 175,997

NonCurrentLiabilities

Borrowings 51,660 21,814 39,697Retirementbenefitobligations 279 283 281Financeleaseliabilities 18 8 23Otherliabilities 425Provisionsforotherliabilitiesandcharges 612 593Deferredtaxliabilities 6,489 872 3,305

TotalNonCurrentLiabilities 59,058 23,402 43,899

CurrentLiabilitiesTradeandotherpayables 8,972 4,682 4,698Incometaxpayable 1,718 3,668 1,078Taxespayable 841 416 772Financeleaseliabilities 19 13 22Borrowings 5,270 2,700Otherliabilities 9,589 16,182 10,286

TotalCurrentLiabilities 26,409 24,961 19,556

TOTALEQUITYANDLIABILITIES 283,671 203,935 239,452

CONSOLIDATEDCASHFLOWSTATEMENT



Forthe6monthsended30June2015

Sixmonths Sixmonths Yearended ended ended

30June 30June 31December2015 2014 2014'000 '000 '000

(unaudited) (unaudited) (audited)CashFlowsfromOperatingActivitiesCashgeneratedfromoperations(Note5) 23,020 18,228 36,414Interestpaid (1,981) (1,554) (4,125)Incometaxpaid (115) (1,337)

NetCashgeneratedfromOperatingActivities 21,039 16,559 30,952CashFlowfromInvestingActivitiesInvestmentsinbusinesscombinations (158) (627) (9,149)Purchasesoftangibleandintangibleassets (14,215) (12,690) (24,425)Proceedsfromsaleoftangibleandintangibleassets Interestreceived 368 347 792

NetCashusedinInvestingActivities (14,005) (12,970) (32,782)CashFlowsfromFinancingActivitiesProceedsfromissueofsharecapital Shareissueexpenses Proceedsfromborrowings 15,433 30,036Repaymentofborrowings (900) (10,000)Proceedsfromnewfinanceleases 37Repaymentsofobligationsunderfinanceleases (8) (3) (14)FinancingfeesofSeniorSecuredTermLoan 433 464

NetCashfromFinancingActivities 14,958 (3) 20,523

NetIncreaseinCashandCashEquivalents 21,992 3,586 18,693

MovementinCashandCashEquivalentsCashandcashequivalentsatthebeginningoftheperiod 82,825 64,194 64,194Exchangegain/(loss)oncashandcashequivalents (459) (62)Netincreaseincashandcashequivalents 21,992 3,586 18,693

CashandCashEquivalentsattheEndofthePeriod 104,358 67,780 82,825

STATEMENTOFCHANGESINEQUITYFORTHEPERIODENDED30JUNE2015

AttributabletoequityholdersoftheCompany

ShareCapital

SharePremium

OtherReserves

CurrencyTranslation

ReserveRetainedEarnings Total

'000 '000 '000 '000 '000 '000

Balanceat1January2014 4,653 65,890 5,115 37 62,151 137,846Profitfortheperiod 15,623 15,623Othercomprehensiveincomefortheperiod 2,103 2,103Totalcomprehensiveincomefortheperiod

2,103 15,623 17,726

IncreaseinCapital Shareoptionslapsed Totalcontributions



byanddistributionstoownersoftheCompany

4,653 65,890 5,115 2,140 77,774 155,572

Balanceat30June2014 4,653 65,890 5,115 2,140 77,774 155,572

Balanceat1January2015 4,653 65,890 5,440 2,852 97,162 175,997Profitfortheperiod 18,428 18,428Othercomprehensiveincomefortheperiod 3,779 3,779Totalcomprehensiveincomefortheperiod

3,779 18,428 22,207

IncreaseinCapital Shareoptionslapsed TotalcontributionsbyanddistributionstoownersoftheCompany

4,653 65,890 5,440 6,631 115,590 198,204

Balanceat30June2015 4,653 65,890 5,440 6,631 115,590 198,204

NOTESTOTHEINTERIMFINANCIALSTATEMENTSForthe6monthsended30June20151BasisofpreparationThecondensedconsolidatedinterimfinancial informationforthe6monthsended30June2015hasbeenpreparedinaccordancewithInternationalAccountingStandard34'InterimFinancial Reporting'. The condensed consolidated interim financial information should beread inconjunctionwith theannual financialstatements for theyearended31December2014, which have been prepared in accordance with International Financial ReportingStandards(IFRSs)asadoptedbytheEuropeanUnion.2SegmentinformationThe followingsegmentsarebasedon themanagement reports receivedby theBoardofDirectors(whoarethechiefoperatingdecisionmakers)whichareusedtomakestrategicdecisions. The Directors consider the business from a product perspective. The mainsegmentsare:Mobile products and services: The main activity of the Group. The Group sells its ownmobilesoftwareproductsandservicestoitsclients.Telecomservices (S.a.a.S):TheGroupcombines telecomserviceswith itsownsoftwareproducts (ebusiness andWiFi services) that are then sold on a "software as a service"basis.Thirdpartygoods:TheGroupresellsthirdpartygoods,toitscustomers,mainlycomprisingmobileequipmentaspartofintegratedmobilesolutionprojects.Transactionsbetweensegmentsarerecordedatcost.TheDirectorsassesstheperformanceof theoperatingsegmentsbasedonrevenuefromexternalcustomersandgrossprofit.ThesegmentinformationprovidedtotheDirectorsforthereportablesegmentsforthe6monthsended30June2015isasfollows:

Thirdpartygoods

TelecomServicesS.a.a.S

Mobileproductsand Total



services'000 '000 '000 '000

Revenuefromexternalcustomers 1,203 5,024 66,199 72,426Inventorycosts (1,066) (1,066)Otherexpenses (2,062) (15,824) (17,886)Amortisation (929) (9,586) (10,515)

GrossProfit 137 2,033 40,789 42,959

Depreciation 58 388 446

Expenditureontangiblefixedassets 100 145 245

Expenditureonintangiblefixedassets 89 13,881 13,970

Totalassets 168 22,410 230,063 252,641

TotalLiabilities 331 4,980 19,829 25,140A further analysis of theGroup's revenue for the period ended 30 June 2015 is shownbelow:Revenueforthesixmonthsended30June2015('000)

Thirdpartygoods

Telecomservices(S.a.a.S.)

Mobileproductsand

servicesTotal

Consumermobilityservices 21,285 21,285

Enterprisemobilitylicenses&subscriptions 25,359 25,359

Mobilesoftwareprojects 19,555 19,555

Thirdpartygoods 1,203 1,203

WiFiBroadbandservices 199 199

SoftwareasaService 4,825 4,825

Total 1,203 5,024 66,199 72,426

ThesegmentinformationprovidedtotheDirectorsfortheperiodended30June2014isasfollows:

Thirdpartygoods


Mobileproducts

andservices

Total

'000 '000 '000 '000

Revenuefromexternalcustomers 2,118 4,313 40,068 46,499

Inventorycosts (1,921) (1,921)

Otherexpenses (1,509) (10,779) (12,288)



Amortisation (1,120) (4,169) (5,289)

GrossProfit 197 1,684 25,120 27,001

Depreciation 53 270 323

Expenditureontangiblefixedassets 64 337 401Expenditureonintangiblefixedassets 100 12,189 12,289Totalassets 902 21,765 145,005 167,672

Totalliabilities 160 2,266 11,674 14,100AfurtheranalysisoftheGroup'srevenuefortheperiodended30June2014,isshownbelow:

Revenueforthesixmonthsended30June2014('000)

Thirdpartygoods


Mobileproductsand

servicesTotal

Consumermobilityservices 20,125 20,125

Enterprisemobilitylicenses&subscriptions 9,948 9,948

Mobilesoftwareprojects 9,995 9,995

Thirdpartygoods 2,118 2,118

WiFiBroadbandservices 225 225

SoftwareasaService 4,088 4,088

Total 2,118 4,313 40,068 46,499Areconciliationofgrossprofittoprofitbeforetaxationisprovidedasfollows:

Sixmonths

Sixmonths

ended ended30June2015 30June2014

'000 '000(unaudited) (unaudited)

Grossprofitforreportablesegments 42,959 27,001

Otheroperatingincome 1,612 3,092Distributionexpenses (9,123) (2,929)



Administrativeexpenses (8,063) (6,021)

Otheroperatingexpenses (4,155) (4,713)

Incomefromassociates 384 835

Financecosts(net) (1,613) (1,207)

Profitbeforetax 22,001 16,058

Revenuefromexternalcustomers

Sixmonths Sixmonthsended ended

30June2015 30June2014'000 '000

(unaudited) (unaudited)

SouthEasternEurope 25,349 20,611WesternEurope 7,967 2,725EasternEurope 2,173 2,140Africa 3,621 1,502Central/SouthAmerica 8,691 8,197NorthAmerica 15,195 2,134Asia/MiddleEast 9,415 9,190Oceania 15

Total 72,426 46,4993EarningsperShareBasicearningspersharearecalculatedbydividingtheprofitaftertaxattributabletoequityholdersbytheweightedaveragenumberofordinarysharesinissueduringtheperiod.

Sixmonths Sixmonths Yearended ended ended

30June2015 30June201431December

2014

(unaudited) (unaudited) (audited)

ProfitfromtotaloperationsattributabletoequityholdersoftheCompany(000's) 18,428 15,623 35,011

WeightedaveragenumberofordinarySharesinissue 373,689,061 363,107,113 373,689,061Dilutedearningspershareassumesthatoptionsandwarrantsoutstandingat30June2015wereexercisedat1July2015,foroptionsandwarrantswheretheexercisepricewaslessthantheaveragepriceoftheordinarysharesduringtheperiod.Onthisbasis,thecalculationof diluted earnings per share is based on the profit attributable to ordinary shareholdersdivided by 373,711,762 (six months ended 30 June 2014: 363,107,113, year ended 31December2014:373,716,423)ordinaryshares.



4TradeReceivables

Asat Asat30June 30June

2015 2014'000 '000

Tradereceivables 47,296 27,456Postdatedchequesreceived 1,916 233Notesreceivables 5Less:provisionforimpairmentofreceivables (18) (15)Tradereceivablesnet 49,194 27,679Advancepaymentstosubcontractorsandsuppliers 5,301 5,279

Total 54,495 32,958Tradereceivablescomprisecustomerreceivablesincreditandpostdatedchequesreceived.TheGroupretainsallrisksassociatedwithpostdatedchequesreceiveduntilthefundsclearthebankonthepresentationdate.

Asat30June2015 Asat30June2014

'000 '000

Upto3months

Between3and6months

Between6and12months

Over12months

Upto3months

Between3and6months

Between6and12months

Over12months

Tradereceivablesfromcustomers 37,719 9,509 50 7,274 6,806 12,642 718

AdvancepaymentstoVendors 3,151 2,116 12 22 68 5,143 4 65

Tradereceivablesfrompostdatedcheques 116 1,800 126 112

Total 40,986 11,625 1,862 22 7,468 11,949 12,646 895

5CashgeneratedfromOperations

Sixmonths

Sixmonths Year

ended ended Ended30June 30June 31December

2015 2014 2014'000 '000 '000

(unaudited) (unaudited) (audited)

Profitfortheperiodbeforetax 22,001 16,058 35,703

Adjustmentsfor:Profitondisposaloftangible/intangibleassets 6Depreciationofproperty,plantandequipment 446 323 731



Amortisationofintangibleassets 10,515 5,289 12,803Movementinprovisions 16 (32) 149Shareof(profit)ofassociate (384) (835) (1,715)Sharebasedpayments 325Impairmentofassets 592Foreignexchangeonoperatingactivities 3,779 2,104 Financecosts(net) 1,613 1,207 3,333Adjustmentsforchangesinworkingcapital(Increase)/Decreaseininventoryandworkinprogress (512) 495 1,266Increaseintradereceivables (2,903) (2,941) (17,658)

Increaseinothercurrentassets (15,199) (5,168) (3,657)

Increaseintradeandotherpayables 3,648 1,728 4,536

CashgeneratedfromOperations 23,020 18,228 36,414

ThisinformationisprovidedbyRNSThecompanynewsservicefromtheLondonStockExchange

ENDIREAFNPAAASEAF

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