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

LOL, please sell by all means and the more the better, it gives me an opportunity to load up on the cheap again. Now if I was a person of ill repute etc, I could add to the rumours and really get them very cheap. Jims right you know, but if you want to sell please do, I will take the slack up lovingly.

cheers GF.

Please go on guys knock them down to 18p or less, please make my year.

gf, took my profit on this one and admit I may have been hasty but if people are profit taking ahead of results combined with mm's playing tricks it could go back into the teens and I will buy again. For once I've taken a gamble of locking in profits with the hope of buying even more if it falls again next week. Might have called it wrong, the chance you take I suppose. I still think you're right and this will be a money spinner.

DGM will rise rather than fall

andysmith

like you i have no problems taking short term gains when appropriate. Its just that I think that with DGM (and the whole digital media advertising bit)the story is just starting. Part of the problem is lack of decent news flow and we need a good positive update.

jim, totally agree and the cash is there waiting to be re-invested. Another 2-3 weeks before results? So many times I've had these small companies, sat and watched them fall after meteoric rise and then once in a loss position don't buy to average down but wait for the rise again which sometimes doesn't happen.
I too believe this will bounce and fly but I've taken the gamble this time of taking profits, hoping for a continued fall next week and buying in again but with more at a lower price. Big gamble I know but I was in that kind of mood!!!

Im staying put and firm.

cheers GF. Lets wait for the results.

Deal Group Media PLC
07 March 2005

7 March 2005



Deal Group Media plc

Issue of equity



Deal Group Media plc announces that it has applied to the London Stock Exchange
for admission to trading on AIM of 966,041 new ordinary shares of 1 pence each
('New Ordinary Shares'). The New Ordinary Shares will rank pari passu with the
existing shares in issue, and it is expected that admission will become
effective on 10 March 2005.


The 996,041 New Ordinary Shares are being issued following the exercise of
options by employees as follows:


550,000 New Ordinary Shares at an exercise price of 3.565 pence
201,041 New Ordinary Shares at an exercise price of 1.2468 pence
100,000 New Ordinary Shares at an exercise price of 6.63 pence
60,000 New Ordinary Shares at an exercise price of 3.80 pence
30,000 New Ordinary Shares at an exercise price of 5.10 pence
25,000 New Ordinary Shares at an exercise price of 6.50 pence





END



Enquiries:

Andrew Dickson, Chief Financial Officer
Deal Group Media plc
020 7691 1880


This information is provided by RNS
The company news service from the London Stock Exchange

GF, what effect do you think this might have on the SP

Nothing really, small dilution of shares, results not far away now.

cheers GF.

GF

Do you know the date the results are out.

MS

Last year they were 21st of April. No date out so far.

cheers GF.

The company say "mid-March" but a poster on a d f nv says 29 March.

From ADVFN. May account for drop today.

10 March 2005

dealgroupmedia launches new service offer with rebrand to dgm

dealgroupmedia, the full service online marketing group, today launches a new service offering with the rebrand of the company as 'dgm.'

The rebrand re-inforces dgm services that focus on three of the biggest growth areas in online marketing: search engine marketing, online advertising and affiliate marketing. The services will be marketed through the newly branded dgmSearchLab, dgmAdNetwork and dgmPerformance network.

The strategy reflects the company's ability to offer clients teams of specialist online marketers in each of the areas vital to a successful online marketing strategy. Clients will now enjoy increased, targeted resources, while the dgm business benefits from an even stronger focus on the growth sectors in online marketing.

The rebrand follows a Q4 2004 period when half of the UK population shopped online and internet retail sales outperformed high street retail with a 20% rise in November and December 2004 year on year (Interactive Advertising Bureau). dgm's performance even outstripped this with a doubling of final quarter turnover from 1.88m in 2003 to 4.45m in 2004.

dgm's growth comes in a climate of increased online customer usage and on the back of a host of new client acquisitions including Oxfam, Standard Life Healthcare, Alliance & Leicester and ING Direct.

Jonathan Lines, Chief Marketing Officer of dgm said:

"dgm is famous for its market leading position in affiliate marketing. What most people don't know is that most of our 250 clients benefit from a range of dgm's services in search, online advertising and affiliate marketing. This is a new dgm, once an expert in one sector, now a specialist in three complimentary areas of online marketing.

"It is fantastic that dgm outstripped the market's growth during the Christmas season. These figures have been achieved by improving the Company's sales mix and consistently driving terrific ROI for our clients. The change to dgm will re-inforce this strategy."


MS

Nice one Mickey was getting twitchey again!

I still am a bit. It would appear the markets don't like the news. Or are they using it to drive down and shake out?

MS

Time to move on Mickey? LOL

Maybe. I'll wait untill the lead up to the results, then I'll decide.

MS

when are the results due

From an early post.

The company say "mid-March" but a poster on a d f nv says 29 March.

Last year GF said the were out end of April.

MS

I wouldnt worry over the short term weakness, several reports on other boards about results containing good news, who can say as I never really beleive in anything until its in writing.

cheers GF. PS forgot aswell Malcolm Stacey to do his radio piece on these before results on radio BBC south.