Q Limited [ASX:QXQ]


August 2014

Q Limited announced its decision to acquire

Crowd Mobile Group


CROWDMOBILE.COM
  Riding the wave of smartphone growth and generating strong profit!

Crowd Mobile is a profitable global mobile entertainment and mobile focused micro-job business.

Opportunity to gain exposure to a company at the forefront of the dynamic smartphone sector:

  • A global multi-platform SMS, mobile 'app' and cloud-based micro-job company;
  • Over 3.4 million Any Question Answered (AQA) messages in FY14;
  • Strong IP, with products and brands including Bongo Thinks, Passion for Fashion, What Would Jesus Do;
  • Global footprint with growth opportunities into new markets;

Profitable financials with solid margins:

  • Proven profitable business model with solid margins;
  • Crowd Mobile Financials in FY14 were $9.7m revenue and $2.2m EBITDA (unaudited management accounts);

Experienced management team

  • Business led by leading internet entrepreneur Domenic Carosa;
  • Globally experienced team driving growth;

Rapidly growing market:

  • Targeting the growing app info and entertainment usage markets globally;
  • Huge growth forecast in smartphone usage, with spend through smartphones expected to increase to $60bn ($26bn in 2012);
Q Limited (ASX: QXQ) has entered into a binding term sheet to acquire 100% of the shares in a number of companies making up the Crowd Mobile group, valuing the micro-cap at approximately $12 million or $5.6x FY14 EBITDA.  The Group is expected to re-list with an EV of circa $14.5 million (excluding cash) based on approximately 6.8x FY14 EBITDA multiple.
 
Crowd Mobile operates in the growing 'SMS & App' market, providing services to users through their mobile phone and tablet devices through the use of a number of Crowd Mobiles’ cool products and brands such as Bongo Thinks, Passion for Fashion and What Would Jesus Do.  In financial year 2014 Crowd Mobile had over 3.4 million questions answered.
 
The company’s vision is to become a global, mobile focused micro job platform (jobs that take less than 5 minutes), building a global cloud based micro job workforce.  We are targeting the growing app info and entertainment usage markets globally.
 
Crowd Mobile has generated strong financials to date, the company is profitable and has demonstrated solid margins.   In financial year 2014 Crowd Mobile generated $9.7 million in sales and $2.2 million in EBITDA (these numbers are unaudited management numbers).
 
There is significant market growth potential as smartphone spend is set to increase to $60 billion in 2017. 

Currently Crowd Mobile’s footprint is global with presence in Australia, New Zealand, United Kingdom, Ireland, Germany, Switzerland, The Netherlands, Belgium, Austria, Italy and France. 

The company sees further growth opportunities to increase its footprint into North America, South America, Asia and Greater Europe.

Investor and media enquiries are welcome.