August 2012

Bob Mobile reports EUR 37.2 million of revenue in H1 2012 and EUR 6.3 million of operating EBITDA

  • 21/08/2012

– Following Cliq takeover, revenue up 115 percent year-on-year in first
half-year
– Second-quarter revenues dampened by market conditions and postponement in
in-troducing new technology platform
– Takeover of UK company Gorillabox Ltd., deal planned to close in Q3,
strengthens technology expertise in mobile video advertising and video
streaming area

Straelen, August 21, 2012 – Bob Mobile AG, a leading provider of games and
mobile entertainment, reports significant revenue and earnings growth in
the first half of 2012. Cliq B.V., which is now fully consolidated,
provided the critical impulse in this context. The integration and related
restructuring of activities at Cliq B.V. and Bob Mobile AG were concluded
to schedule at the end of June. Overall, the Bob Mobile Group generated EUR
37.2 million of revenue in the first half year (prior-year period: EUR 17.3
million) and operating EBITDA (adjusted for EUR 1.1 million of takeover and
restructuring costs) of EUR 6.3 million (prior-year period: EUR 0.2
million).

The company reported EUR 17.7 million of revenue in the second quarter (Q1
2012: EUR 19.4 million). Operating EBITDA stood at EUR 3.0 million in the
second quarter (Q1 2012: EUR 3.3 million). Including the takeover and
restructuring costs, EBITDA amounted to EUR 2.2 million for the April to
June months (Q1 2012: EUR 3.0 million).

‘Having successfully integrated Cliq and Bob Mobile, we are now
concentrating fully again on the further development of our products and
market positions in the freemium and premium areas. The market environment
has worsened considerably in some countries over the last months – whereby
Bob Mobile’s positioning in currently more than 50 countries has mitigated
the effects,’ commented Remco Westermann, CEO of Bob Mobile AG. ‘Based on
trends in the second quarter and the first few weeks of the second half of
the year, we will publish an update to our FY 2012 forecast before the end
of September. Until then, the application of IFRS in connection with the
Cliq acquisition is completely recognized in income statement and thus a
more accurate forecast of the annual result is possible,’ Remco Westermann
went on to comment.

Having reported EUR 34.9 million of revenue in the first half year, and EUR
9.1 million of operating EBITDA, the premium division is slightly below
prognosis. Pressure on revenue is also evident at the start of the second
half of the year. This is due, firstly, to weak economic growth combined
with lower consumption spending, particularly in Southern Europe. For the
first time, this is having significant negative effects on revenue and
earnings with new and existing customers in these countries. Secondly, the
regulatory environment, especially concerning the billing of premium
services, is intensifying further in some countries. Regulatory changes
were already implemented at the end of the second quarter, and are also
announced for the second half of the year. The company continues to drive
further ahead with its internationalization to offset revenue pressure on
traditional markets. The special focus in this context is on the growth
markets of Africa and South America. Premium services were launched in
Kenya and Columbia in the second quarter.

The strategically important freemium games area, which is currently being
established, generated EUR 1.5 million of revenue in the first half of the
year. This business unit concentrated on optimizing and expanding their
games portfolio in the first half of 2012, and the further development of
the technical platform. In particular, additional features are being
developed to generate revenue along with items sales. With costs in line
with budget, revenue of EUR 1.5 million in the first half-year fell short
of planning, feeding through to EUR -1.4 million of operating EBITDA.

Just A Game GmbH is concentrating on four online games in 2012. The
War2Glory online strategy game, which had already been launched by the end
of 2010, and also the fussballcup.de football manager game which was
published in June 2012, continue to report a positive trend. Delays
occurred to the mobile version of War2Glory, and the Myfarmland online
game, as a result of which they were not launched until the second half
year, thereby delaying revenue growth. In addition, the Call Of Kings
online card game was contractually secured in the third quarter, and is
also set to be launched in the second half of the year. Due to the more
efficient organization, additional games were launched with only a minimal
increase in staff numbers in the case of Just A Game. Just A Game will make
a positive earnings contribution following the revenue growth connected
with the additional games.

The sub-area, mobile freemium games under the thumbr brand, which is still
in the development and establishment phase, made major progress in the
first half of the year. This cross-platform gaming and entertainment portal
licensed nine high-quality mobile games during the first six months of the
financial year 2012. The company also worked intensively on the further
development of the thumbr mobile and online portals, including completing
the thumbr iOS app, and launching the thumbr.com website. In overall terms,
however, thumbr fell short of the company’s own targets due to the
difficulty of securing specialist staff, as a consequence of which
substantial revenue is not expected until the third quarter. The thumbr
technology platform (Software Development Kit SDK) – which serves
independent software developers as the basis for developing their own games
– was completed and actively marketed among developers in the third
quarter. Active marketing of mobile games on thumbr will then also start
from September.

In addition, Bob Mobile has reached agreement with the owners of UK company
Gorillabox Ltd. concerning a takeover of this software firm. Gorillabox has
developed very flexible technology to reproduce videos on mobile
telephones. A video stream can be optimized live for different screen sizes
and transfer speeds, for example. This technology is particularly valuable
when utilizing video advertising on mobile devices – one of the
fastest-growing advertising markets. Gorillabox is to be integrated into
thumbr in this context. Along with revenue from items sales and traditional
online advertising formats, video advertising plays a special role in the
thumbr strategy. The aim is to provide a special direct response video
format for advertising customers, which makes (advertising) videos
available both through streaming and as a one click download, and which can
be deployed as a pre-, mid-and post-roll solution. The purchase price for
Gorillabox amounts to between 20,000 and up to a maximum of 45,000 Bob
Mobile shares, depending on the attainment of certain earnout conditions.
The acquisition is to be completed by the end of the third quarter 2012.

All results for the first half of 2012 are preliminary. The application of
IFRS may still result in changes to the results for the first half of 2012
due to the merger. Complete final figures for the first half of 2012,
including balance sheet and the outlook, will be published before the end
of September 2012.

About Bob Mobile AG:
Bob Mobile AG, which is based in Straelen, Germany, is a leading provider
of games and mobile entertainment. As a marketer and publisher of games and
other mobile value-added services, the Group is active in over 50
countries, especially by way of its direct sales to end-customers. Bob
Mobile AG has been establishing its Online & Freemium Games division since
July 2010, and also its Freemium Mobile Games division since the end of
2011. Bob Mobile is a specialist in the direct marketing to end-customers
of its products through the Internet, mobile Internet and TV. The
acquisition of Cliq B.V. was concluded in February 2012, allowing the
company to grow to a new dimension. The Bob Mobile Group focuses on
continuous and profitable growth, both organically through expanding into
new countries, through expanding the games portfolio, and through external
growth. Bob Mobile AG is listed in the Entry Standard of the Frankfurt
Stock Exchange.

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

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