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Telstra adds one million mobile services, but Sensis plummets

Telstra has revealed the addition of almost one million new mobile services in the six months to December 2011, but Sensis revenues plummeted 24 percent in 12 months.

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Loop Mobile to split from AdultShop and raise $5m though IPO

Your IT - Mobility

Loop Mobile is planning to demerge from AdultShop and an initial public offering and listing on the Australian Stock Exchange.
It has lodged a prospectus with the Australian Securities and Investment Commission (ASIC) and plans to begin trading on the ASX on Tuesday 26 June. Twenty five million shares will be offered at $0.20 each to raise up to $5 million, about 41 percent of the company, with a minimum subscription of $4 million. AdultShop shareholders will receive between them 21.7 million shares. The offer will open 30 May and close on 8 June 2007.

Peter Yates, CEO of Allco Equity Partners and former CEO of Publishing and Broadcasting has committed to invest $1.25 million in the IPO. If all the shares on offer in the IPO are taken up he will be the largest shareholder with 12 percent and Greg Kennedy (Loop's initial seed investor) will hold 11 percent. The company intends to use the funds raised from the IPO to expand its range of services and to fund the marketing and roll-out of its services.

Loop was established in Perth in 2004 and is now led from Sydney by Martin Hoffman, CEO and managing director. It was acquired by AdultShop in August 2006. Since then AdultShop has funded Loop's development and operations. Loop had revenue of $632,000 in the six months to December 2006, and is forecasting revenue of $915,000 for the six months to June 2007, giving a total of $1.55 million for the 2007 financial year. This represents an increase of 730 percent over the revenue of $212,000 for the 2006 financial year. Most of the company's' revenue is generated outside Australia, according to Hoffman.

Earnings before Interest and Tax (EBIT) adjusted for one-off and non-recurring costs associated with the offer is forecast to be a loss of $2.32 million for the 2007 financial year. This compares with an EBIT loss of $1.77 million for the 2006 financial year, and, says Loop, reflects the increased investment in the development and roll-out of its services internationally.

Hoffman acknowledged that part of the reason for the IPO was to distance the company from AdultShop and he added: "The transparency of being a public company is a useful thing when dealing with international telcos and having that script may well provide flexibility for future acquisitions and corporate ventures."

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