Shares of Mobile Embrace Ltd (ASX: MBE) soared more than 8% this morning after the company provided an update on its international carrier billing operations. That compares to a 0.1% fall for the ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) index.
Mobile Embrace is an innovative mobile payment and marketing company, helping to connect clients to customers. It maintains carrier billing operations in the United Kingdom, Switzerland, Singapore and, most recently, Malaysia. It also operates carrier billing in Australia, although today's update focused on the international performance.
The company said that international carrier billing revenue is on track to exceed $500 thousand per month by December (compared to $200 thousand per month in July) with international transactions on track for 400% growth from July to December. It also has the opportunity to establish carrier billing operations in a further 15 countries which could lead to significantly greater revenues in the coming years.
Mobile Embrace's CEO, Chris Thorpe said, "Direct carrier billing continues to be a very high growth market as more consumers transact through mobile devices. This trend is reflected in the very strong and material growth MBE is witnessing in its rapidly expanding carrier billing operations. Through our current partnerships and the direct carrier billing agreements we have with leading telcos, international carrier billing is an important and very strategic growth driver for MBE."
Although Mobile Embrace is by no means a risk-free investment, it certainly appears to be pulling the right strings to achieve its long-term growth targets. The company's shares are now trading for 26 cents each, down from a high of 32 cents, and could be worthy of a closer look.
