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.

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