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.....................

Welcome aboard ugez.

cheers GF.

I am going to rename my portfolio Swings and Roundabouts. Having watched in depair as SEO and BPRG go south I see now that DGM is now heading north. Long may it continue.

B2B

yup, its a nice feeling to see it on the up again.

cheers GF.

Especially good news IMHO when you get the 5% rise on the back of NO news

Looking good again, interested to see if we can break the 24p barrier!

small piece in Shares mag today

Any chance of posting the details from the shares mag coverage?

Nice to see it up. Its still my pick for the year and you caN all put the boot in.

Lets see whos right or wrong.

cheers GF.

>> Shmag just makes the point that the internet now attracts 3.4% of total advertising spend in the UK, after a 52% year on year increase in 2004. Of this the fastest growth area is search engine marketing which accounts for 32% of online ad spend. DGM and IBG are the two companies in this area mentioned as buys.

rgrds
gk

Thanks gallick, I was busy last night and only had paper mag. I was going to type article later today!

Smokin today !!!

Back to form.

cheers GF.

Topped up yesterday.

MS

Looking very strong.

cheers GF.

gf, who would put the boot in, you don't appear to get many wrong. Bought in at 19.25p a few weeks ago and very happy. Did you get in on SEO which was one of my of three tips on your tips for 2005 thread, the others being MMG/IDS?
I have discarded my only "dog-share" this week (buried amongst a good run), any recommendations? thought about CBF but hadn't kept up recently, drat!!
Anyway, this is about DGM and it is strongly positioned to take advantage of the cultural switch to on-line purchasing and therefore online advertising.

Great news as on-line purchasing is peaking every month

Hp andy, no drat I missed SEO but felt it to be the strongest tip on that Shares list. Will have to wait and see.

cheers GF.

Thought this one had held up very well yesterday compared with all my other red shares so decided to add some more to the pot. So far so good. Anyone got any new news about DGM?

Cheers

B2B