Deal Group Media is the biggest and only true online advertiser on the whole of the London stock exchange. Its business is that of focussing on delivering high returns to its clients from online advertising through all differing sizes of web site and search engines. The massive increase in online advertising means it is at the very leading edge of the growth in the industry.

Just a few raw figures to look at in this industry.

*Internet advertising now accounts for around 4% of all company advertising and is growing as a % of all company advertising, we are only at the very beginning of a Mass market.

*The market is expected to break 500 million by the end of December.

*The market saw a 75% increase in revenues in the first 6 months of 2004, so you can see the growth is really staggering.

*Just take a look at this site and others and see all the adverts and pop ups plastered around, theres a good chance that DGM have a hand in many of these adverts.

*The biggest growth stimulant has to be the growth in online shopping and this should increase the market size for many years to come.


The last results reported were very encoraging indeed and 2005 shold be the year this one really breaks out and shines, here are the main points.

Deal Group Media plc, the online marketing group whose activities include
performance-based advertising and search engine marketing, today announces its
interim results for the six months ended 30 June 2004.

Highlights


Business transformed by merger of The Deal Group and IBNet plc


Combined operations turnover 6.55 million (878,000 by former IBNet plc)*


Pre-tax profit 619,000 (before amortisation of goodwill)


Pre-tax profit 45,000 (623,000 loss by former IBNet plc)*


New blue chip clients being won


Core business achieving record growth month on month


An increasingly positive online marketing outlook


Further progress anticipated in the second half of 2004.

The company as an impressive list of clients.......

: AOL, Autotrader, American Express, BT, B&Q, Cancer
Research, Comet, Coral, Dial-a-phone, easyjet, esure, Halifax, Interflora, John
Lewis, Littlewoods, Ladbrokes, Lloyds TSB, Match, MBNA, MoreThan, Nestle, phones
4U, Tiscali, Virgin Megastore, 888 and many more.


Key growth sectors are: mobile telecommunications, broadband, financial and
automotive, with further growth coming from gaming, travel and retail.


On results Adrian Moss, Chief Executive, said:

'We are delighted with the results now being delivered by the Group and our
promising potential. The foundations put in place following the merger, our
focus on delivering return on investment through measurable online marketing for
advertisers and our industry profile, are proving to be a combination that is
delivering value for clients, shareholders and other stakeholders alike. In a
marketplace that continues to grow and consolidate, we are seeking further
acquisitions to broaden the width of our offering and extend our geographic
reach. We look forward to continued growth.'

The company are making great strides to grow organically and are looking at the very large European market were acquisitions will be made.

Outlook

We anticipate that the second half of 2004 will continue to progress
successfully. Turnover exceeded the 1 million a month landmark for the first
time in 2004 and has consistently remained there. Month-on-month, the
Performance Network channel is enjoying record growth. The online advertising
channel is now establishing itself with regular repeat orders. Search remains a
strong growth opportunity and the newly launched affinity channel shows early
signs of success. Our key channels are growing and we anticipate they will
continue to do so.
With nine months of the new business operating and significantly outperforming
the previous entities, we have a solid base to continue delivering for our
clients and shareholders. We can only repeat the sentiments of our 2003 Annual
Report - we remain confident and excited about the Group's prospects.

Fundies.

Y/Ending 31-12-2004 EPS 0.50p P/E 25.00
Y/Ending 31-12-2005 EPS 0.80p P/E 8.5

So forward P/E of 8.5 is very cheap for an online growth stock.

Alpha/Beta

The beta is on the low side so it wont exactly fly, but all in all it looks a solid growth investment. Certainly not another 'As Seen On Screen' but as per this weeks Investors Chronicle, low beta stock have greatly outperformed high beta stock this past year.

Does it have any minuses, well although not a minus some from the old school would be looking at Intangible assets and amortisation of goodwill but as an healthy profit making company I see no reasons to be negative here.

It is a cyclical industry is advertising but lets face it we are now on the upcurve and more and more businesses are turning to the internet for cheaper advertising solutions.

Conclusion

This looks a solid sound investment and although I wont put a figure on the Sp with its ongoing fantastic growth I would be hoping for a very exciting performance during 2005.

DYOR

Cheers GF.

By the way the chart added as per Dils request.....................

I bought in at around 10p and agree that this should be a great play for 2005. Look at any decent on-line retailer such as ASOS and sales are soaring. Working on-line has now become the norm and millions of people are at their screens every day which means that the big companies will follow with their adverts. A few weeks ago there were some vague rumours about DGM getting business from Sony but I've heard nothing since.

Very interesting Jim, if they do get a contract from Sony it should boost the SP.

Up slightly so far, as I said ittajes a lot to move this one either way so investors shouldnt expect miracles.

cheers Gf.

Some nice buy volume in this today.

cheers GF.

Another small rise up but dont forget they all count.

cheers GF.

Taken from yesterday's business section of the Times.....

Deal Group Media rose to a 3 year high amid rumours that the house broker had cleared an overhang of 5 million shares. Some of the stock is understood to have gone to a big US fund manage giving it a debut stake. Recent client wins include Apple, Virgin Mobile, Vodafone and B&Q.....

Fantastic news WOW.

cheers GF.

Put a chart in the heading.


Cheers

Done.

Cheers GF.

More to come from the Yanks. You bet.



cheers GF.

A slight fall today, but beleive me this one is really a money earner for 2005.

cheers GF.

Yesterday's (3 Jan) Times carried an article about advertising in general - the thrust being that 2005, without any major sporting or political events will be flat. It goes on to say.....the one sector that continues to grow strongly is online advertising...more than trebling its size in the past two years...the expectation is for growth to remain in the double digit range.

Looks good for DGM

up a bit today-people beginning to pick up on this one!

following up on my note above, the big ad agency aegis predicts that 2005 growth for on-line ads will be around 20%

Times Business section , 5th January, ....Fidelity has declared a 4.2% stake in DGM.

Good news that Jim, I rate Fidelity very highly.

cheers GF.

Looks like this ones been tipped just look at all the buys today.

cheers GF.

Get in there, thanks gf!! Any price target??