MENU

What’s happening to the Mobile Embrace Ltd share price?

They’re up another 11.5% today after rising nearly 11% on Thursday to trade at a new 52-week high of 34 cents per share. By comparison, the ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) is up a mere 2.4% since Wednesday.

Mobile Embrace is an innovative mobile payment and mobile marketing company, acting as a Digital Distribution Network for the complete end-to-end mobile customer life-cycle.

The rally came after the company said it was on track to achieve record first-half revenues and earnings. It has forecast 92% year-over-year growth in revenue to be “greater than $27 million”, while underlying earnings (before interest, tax, depreciation and amortisation, or EBITDA) is anticipated to be $7.5 million (note that this excludes the impact of $4 million in customer acquisition costs).

This doesn’t reflect how much revenue will actually fall to the bottom line, but it’s an encouraging result regardless.

While Mobile Embrace said its domestic operations are performing well across the company, much of the growth is coming from its international expansion. Direct carrier billing revenues have been growing at a rate of 20% month-on-month since July with Chris Thorpe, the group’s CEO, saying:

“(Mobile Embrace) is performing very strongly as reflected in our first half forecast. Only now are we starting to realise the benefits of our expansion initiatives and I am confident that MBE is still in the very early stages of its growth.”

Indeed, international expansion introduces new business risks but Mobile Embrace certainly appears to be pulling the right strings to achieve its long-term growth targets.

Here Are 2 Top ASX Shares Warren Buffett Would Love...

Hot off the presses! The Motley Fool has just published a brand-new investment report and your copy is FREE. Click here to discover Warren Buffett's investing secrets and two top ASX shares Buffett could love! Your copy is free when you click here.

Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.