Mobile value added service provider and IoT Allterco (A4L BU) booked 51% y/y rise in FY2016 net profit despite a loss in 4Q16, according to the Company’s consolidated financial statements.
IoT operations delivered BGN 3.7m in revenues in the first year of operations while mobile value added services added 2.9% y/y to BGN 29m in revenues.
IoT was key growth driver for the Company’s top and bottom lines in 2016. It contributed significantly to profitability improvement. Allterco net income is up 51% y/y to BGN 1.4m.
However, the Company booked a loss in 4Q16 of BGN 331k on one-off impairment charges.
Allterco reported strong 3Q16 results
The new player on the Bulgarian Stock Exchange published strong 3Q16 results, according to the Company’s consolidated 9M16 financial statements.
The Company posted 15% y/y rise in mobile value added services revenues to BGN 21.8m and booked BGN 1.6m in sales from new Internet of Things operations. The latter translates into 10K+ kids smart watch MyKi sold units above pre IPO expectations. Net income surged to BGN 1.7m for the 9M16 on higher margin IoT operations. The results come post the beginning of the new school year but prior to the Black Friday and Christmas trading.
Flying start on the stock market as of December 2016
Allterco IPO-ed in Sofia in the autumn of 2016, raising BGN 2.2m for IoT operation development. IPO valued Allterco at BGN 21.8m market cap.
On 1 December Allterco started trading on the Bulgarian Stock Exchange and finished its first session with 15% rise above the IPO strike price.
Yesterday, 28 February 2017, Allterco shares profited best during the session concluding the day with 7,9% on the upside.
Allterco was incorporated in 2010 but the Company’s origin dates back to 2001. Its founders started by selling ringtone and mobile wallpapers, even published a mobile phone magazine. Currently, the Group operates via 11 subsidiaries in all its key markets, including one in the US (not shown on the diagram below). The latter structure became operational after a major Holding reorganization and restructuring at the end of 2015. During the restructuring, Allterco Robotics was established to separate the Internet of Things operations. The rest of the companies in the Group provide mobile value added services, micropayment solutions as well as mobile marketing and notification. The Group is licensed to operate 0900 short numbers in Bulgaria until 2024 as well as to be a service based operator in the markets it operates, e.g. Singapore.