Itouch moves back into the black

Itouch, the mobile phone services provider 39.7 per cent owned by Independent News & Media, moved into the black last year when it posted a pretax profit of £3.7 million (€5.3 million).

This compared with a loss of £4.9 million a year earlier.

Turnover rose by 29 per cent to £78 million on the back of a very strong performance from its consumer data division. Revenues for this business, which includes ringtones, jumped from £14.8 million to £48.6 million.

Analysts said the numbers were positive for Independent News & Media, which reports its 2004 results today, because they will reverse the associated losses recorded by the group last year.

"In addition, the market will be encouraged by the fact that Itouch remains cash-rich as it suggests that the group should have limited reason to call on Independent for cash injections," NCB said.

At the end of December, Itouch had net cash of £13.1 million. The company intends to continue to focus on the consumer data market by continuing to expand its geographic reach, as well as extending its product offering further.

It also plans to prepare for 3G by focusing on product areas such as music, gaming, gambling, chat and dating.

"We will also be deploying subscription-based business models to build recurring revenues," Itouch said.

As part of its move to focus on the consumer data market, the company also said yesterday that it had disposed of the trade and assets of Itouch Business Mobility to a company beneficially owned by former Itouch director and one of its founders, Avi Azulai, for £1.1 million in loan notes.