Mobile Marketing Firm 2ergo Profits Rise On Global Expansion

Arsenal Phone app, developed by 2ergo

Mobile marketing and content business 2ergo has reported an 11 percent rise in profits to £11.8 million ($19.5 million) for the year to August 31, despite revenue dropping 30 percent to £22.6 million ($37.4 million).

As the company continues to expand globally and increase its client base, it’s making less money from wholesale re-selling services — hence the revenue drop. But providing mobile services like websites and apps direct to big name clients has seen gross profit margins rise from 30 percent to 48 percent. Release (pdf)

The Manchester-based firm makes iPhone apps for Rightmove.com, Arsenal FC and is working on the forthcoming Guardian iPhone app.

2ergo made three early-stage digital start-up acquisitions in 2008/9: UK mobile marketing firm Broca, Australian mobile marketing firm Wapfly and India/UK-based mobile ticketing company Activemedia. Instead of buying more companies, 2ergo says it will spend £7 million on investment in new products and staff in 2010

During the year, the Group has continued its strategy of increasing its global footprint to capitalise on the boom in mobile services in some of the fastest growing regions in the world. In early 2009, 2ergo relocated its global headquarters to the centre of MediaCity UK, London, Washington, New York, Mumbai, New Dehli, Sydney and Buenos Aires, while its headcount grew from 82 to more than 150 and is expected to reach 240 in the next financial year.

Comments have been disabled for this post