GLOBO
A technology innovator delivering mobile, telecom and e-business software products and services. I have a holding in my growth portfolio (epic code: GBO).
Globo released a statement ahead of its AGM, reporting a 130% rise in subscribers to GO!Enterprise, its cloud-based mobile services product, in the past year. Following launch at the end of 2011 the initial revenues of €2.0 million, rose to €12.0 million in 2012.
They also stated that so far in 2013 they have continued to achieve strong revenue and profit growth across both enterprise and consumer segments. Overall, they stated that they are in an excellent position to address the BYOD trend and are confident that 2013 will deliver further profitable growth for shareholders.
Key to growth for Globo is in developing their position in the US market. Although they remain confident, many of their competitors are much larger established corporations. In a separate statement to the press, CEO Costis Papadimitrakopoulos stated that they are looking at possibly two acquisitions either to boost its product portfolio or to enter new markets. He estimated that they may pay approximately $10m for a typical acquisition. In addition to the organic growth challenge in the US, this will increase the execution risk, not least because of the amount of management time required to integrate two acquisitions.
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