June 2012

Preliminary results FY 2011 and Q1 2012

  • 14/06/2012

First quarter 2012:
Revenue increased by 92 percent to Euro 19.4 million (Q1 2011: Euro 10.1 million)
Adjusted EBITDA (excluding merger and restructuring costs) increases to Euro 3.3 million (Q1 2011: Euro -0.3 million)
Fiscal year 2011 Bob Mobile AG (excluding CLIQ B.V.):
The fiscal year 2011 was focused on acquiring Cliq B.V. and the build-up of the business unit freemium games
Full year revenues of Euro 35.1 million (2010: Euro 40.7 million)
Excluding extraordinary one-off items (sale of the adult business and withdrawal from the Greek market) revenues increased by 3 percent
EBITDA impacted by merger costs and build-up of online games
positive EBITDA in the fourth quarter of 2011
Adjusted EBITDA 2011 amounts to Euro +0.35 million (EBITDA including merger costs Euro -0.30 million)
Net income before minority interests of Euro -2.5 million due to extraordinary one-offs (esp. impairments related to selling adult entertainment activities and impairments games licenses)
Annual results 2011 of the Cliq BV (Consolidated as from 2012)
Revenues of Euro 58 million on target
Adjusted EBITDA (excluding merger costs) of Euro 16 million
Net income of Euro 6.6 million

First quarter 2012: positive performance, projected figures for 2012 confirmed

Bob Mobile AG had a good start to the 2012 fiscal year. In the first quarter of 2012, group revenues increased by 92 percent to Euro 19.4 million (Q1 2011: Euro 10.1 million). The main reason for the sharp revenue increase is the first time consolidation of the new subsidiary Cliq B.V. from January 1st, 2012.

The Bob Mobile Group realized an adjusted EBITDA of Euro 3.3 million in the first quarter 2012, representing an increase of Euro 3.6 million compared to the previous year quarter (Q1 2011: Euro – 0.3 million). The Q1 adjusted EBITDA excludes merger and integration costs of Euro 0.3 million. The organizational and technical integration of Cliq BV will be completed on schedule by the end of June 2012. From the second half of 2012, all cost synergies that are related to the acquisition will be fully reflected in the results. For fiscal year 2012, the executive board expects a revenue increase to approximately Euro 95 million with an EBITDA of approximately Euro 18 million.

The business unit ‘Freemium’, which is still in the build-up phase, generated Euro 0.9 million, being about 5 percent, of group revenues in the first quarter 2012. The ‘Freemium’ business unit and its brand ‘thumbr’ will play an important role in the future strategy of Bob Mobile AG. The freemium model games are basically free to play for the user and available online as well as available as downloads from the Apple Store and the Google Play Store. The company generates revenues through item-sales, upgrades and advertising. While item-sales and upgrades already show appealing results (eg within ‘War2Glory’ and ‘Ski Jump’), the advertising part, consisting of lead generation, banner and video advertising, currently is being implemented and tested (eg. Apple just recently approved ‘thumbr’s new registration flow). In the first two quarters of 2012, the focus for the ‘Freemium’ unit was on the technical optimization and on increasing the revenue per player (ARPU), and – alongside the online freemium PC games – the build-up of the mobile freemium games area. It is planned to focus the ‘Freemium’ Unit on generating strong growth in the second half of 2012. This includes increased marketing activities as well as investments in a significant growth of the customer base and game assets (titles).

The business unit ‘Premium’ generated Euro 18.5 million, about 95 percent of group revenues in the first quarter 2012, while the surge in growth was primarily due to the consolidation of the Cliq BV from January 2012 onwards. The focus of the ‘Premium’ unit has further shifted in favor of the growth area games. The proportion of gaming customers rose from 45 percent at the end of 2011 to 55 percent at 31 March 2012. While the mobile premium services are available and advertised online in more than 40 countries, the focus of internationalization lies on the launch of new mobile portals. In the first quarter of 2012, the launch of the mobile portals in Ireland, Singapore, Spain, UK and Thailand has been realized, increasing the number of countries where the new mobile portals have been launched to a total of 15.

Consolidated group EBITDA showed a positive development: the ‘Premium’ unit contributes substantially, while the ‘Freemium’ unit was just under break-even with Euro -0.5 million in the first quarter. In the first quarter of 2012, no positive cost synergies from the Cliq acquisition are materializing yet. The synergies will only apply from the third quarter 2012 onwards, while the first two quarters still include additional merger and integration costs. Due to the fact that the IFRS handling (particularly purchase price allocation, goodwill amortization and depreciation) has not yet been finalized, the final Q1-2012 balance sheet figures will be released within the next month.

The fiscal year 2011 was focused on the acquisition of Cliq B.V. and the build-up of the business unit freemium games

Bob Mobile AG has, according to preliminary figures 2011, generated consolidated group revenues of Euro 35.1 million. This is a revenue decline of 14 percent compared to 2010 (Euro 40.7 million). Excluding extraordinary one-off elements, there was however a revenue increase of 3.0 percent. Extraordinary elements were the almost complete withdrawal from the Greek market due to a negative assessment of country risk (decline in revenues of Euro 5.7 million) and the exit from the adult entertainment area through the sale of the activities of the subsidiary Pink Adventure AG as of 1 August 2011 (decline in revenues of Euro 1.0 million). A 300-percent growth in online games and the freemium business area, as well as an increase in sales of mobile activities in other countries, could only partly offset the revenue decline.

The adjusted consolidated EBITDA for the full year 2011 amounts to Euro +0.35 million (2010: Euro 3.1 million). This adjusted EBITDA excludes merger costs of Euro 0.65 million. The EBITDA for the full year 2011 amounts to Euro – 0.30 million, including merger costs. In the first three quarters of 2011, there was a negative EBITDA as the positive EBITDA of the mobile activities didn’t fully compensate the negative EBITDA of the games activities. In the fourth quarter the improved EBITDA in the games unit lead to a positive EBITDA (Euro 0.2 million including and Euro 0.6 million excluding merger cost) for the total company.

The unit Freemium & Online Games (specifically Just A Game GmbH) showed a revenue growth of 300 percent (from Euro 1.0 million in 2010 to Euro 4.0 million in 2011) in the 2011 fiscal year. The lower than expected growth was caused by a delay in internationalization of the unit. The main reasons for this were technical delays, which have been overcome since then. The Executive Board anticipates a further significant growth of this promising business area in 2012.

The consolidated total after tax income for 2011 amounts to Euro -2.5 million before minority interests (2010: Euro +1.8 million). In addition to normal depreciation charges of Euro 0.8 million (2010: Euro 0.4 million) especially extraordinary write-offs, totaling Euro 1.4 million lead to this result. The write-offs resulted from extraordinary depreciations related to the sale of the Adult activities and media (Euro 1.0 million) as well as revaluations of licenses, particularly regarding the games license trading sector (Euro 0.4 million). After minority interests, the net result is Euro -3.8 million. The profit shares of the minorities (esp. Guerilla Mobile Berlin GmbH) cease in 2012 as a result of the purchase of the minority shares.

The 2011 results of Bob Mobile AG are based on first time full IFRS. The appointed auditor is currently finalizing the audit of the figures. The final figures and the full 2011 annual report will be published before 2nd July 2012. The Annual General Meeting of Bob Mobile AG will take place on 24 August 2012 in Düsseldorf.

Annual results 2011 of the acquired Cliq BV on plan

Cliq B.V., which has been acquired by Bob Mobile AG, has completed the fiscal year 2011 as planned. Cliq B.V. realized Euro 58 million revenues in the business year 2011 (corresponding to reported net sales excluding mobile operator share of Euro 41.5 million). The adjusted EBITDA (excluding merger costs) was at Euro 16 million according to plan. The net result amounted to Euro 6.6 million. The net result includes goodwill amortization of Euro 2.8 million. From fiscal year 2012 onwards Cliq B.V. will be fully consolidated within the Bob Mobile AG.

All figures for the first quarter of 2012 and for fiscal year 2011 are preliminary and unaudited. The IFRS implementation can still lead to changes in the Q1 2012 figures due to the acquisition of Cliq B.V. The balance sheet of Q1 2012 will be made available after finalizing the IFRS implementation.

About Bob Mobile AG:
Bob Mobile AG is a leading provider of gaming and mobile entertainment with its headquarters in Straelen. As a leading marketer and publisher of games and other mobile services, the group has commercial activities in over 40 countries, predominantly through direct sales to consumers. Since July 2010, Bob Mobile AG is building up the area of freemium online games. In 2010 Bob launched the first multiplayer online game, ‘War2Glory’. Bob Mobile specializes in the direct consumer marketing of its products through Internet, Mobile Internet and TV. In February 2012 the acquisition of the Cliq BV was completed, which has resulted in substantial non-organic growth. The Bob Mobile Group is focusing on continued profitable growth both organically (by expanding the portfolio of games and expansion into new countries) and through acquisitions. Bob Mobile AG is listed on the Entry Standard of the Frankfurt Stock exchange.

Contact Bob Mobile AG:
Corinna Neumann
Paesmühlenweg 8
D-47638 Straelen
Telephone: +49 (0) 2834 9429209;
Fax: +49 (0) 2834 46299409;
E-mail: Investor@bobmobile.com
Internet: www.bobmobile.ag

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