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

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.

Given the positive tone of the update towards the end of January I can't believe that the results will contain anything other than good news. I expect any surprises to be on the upside.

Press Release 14 March 2005




Deal Group Media plc


Preliminary Results - Tuesday 29 March 2004

Deal Group Media plc, the full service online marketing group, will announce its
Preliminary Results for the year ended 31 December 2004 on Tuesday 29 March
2005.


An analyst meeting will be held at Abchurch Communications Limited, 5th Floor,
100 Cannon Street, EC4N 6EU at 9:30 am on 29 March 2005.



- Ends -


cheers GF.

we may start to see some buying now, on the run in to the results.

good volume building and lots of buys

Yes its nice to see these getting strength back Jim.

cheers GF.

Surprised not to see anymore action on this one as results are out on tuesday, any thoughts/expectations on these GF?

I sold yesterday and got into MMG. What a good move that was.

MS

Press Release 29 March 2005


Deal Group Media plc

('Deal Group Media' or 'the Group')

Final Results

Deal Group Media plc, the online marketing group whose activities include
performance-based advertising and search engine marketing, today announces its
Final Results for the year ended 31 December 2004.

Highlights

Turnover increased to 14,802,000 (9 months in 2003: 2,965,000)
EBITDA increased to 1,652,000 (9 months in 2003: Loss 926,000)
Pre-tax profit up to 219,000 (9 months in 2003: Loss 1,832,000)
Diluted earnings per share up to 0.50p (9 months in 2003: Diluted loss per
share of 1.15p)
300,000 invested in reporting systems and technology in last quarter of
2004 in anticipation of future growth

Commenting on the results, Adrian Moss, Chief Executive, said: 'The Group
underwent a complete transformation from 2003 to 2004, from being loss making to
a profitable Group with three distinct products sold through the UK trading name
'dgm'. Our expansion has been fuelled by significant growth in the online
marketing sector, that in turn has been driven by broadband penetration and an
increased consumers' propensity to spend online. The outlook for the Group
continues to be extremely positive.'

From the following, the overall results hide the degree of profitability within the company!

On an EBITDA basis, the Group generated 1,652,000 in 2004 (9 months in 2003:
Loss 926,000). The Group generated operating cash flow of 1,450,000 which led
to an overall increase in cash during the year of 1,376,000.

Performance in the final quarter of 2004 when compared to that of 2003 on a like
for like basis shows that turnover has increased 170% and the Group has moved
from an operating loss of 662,000 to an operating profit of 965,000 for that
period.

Excelent results. Looking forward to Broker upgrades.

cheers GF.

Broker upgrades should be very positive given the growth in all areas, especially the cash flow figures and the fact that the company is net cash positive. I wonder what the forward profit expectations will be given the results. Does anyone know if there are any broker presentations today?

Not sure LO, might be worth a look on their site.

cheers GF.

According to DGM's "notice of results" issued on 14 March there was an analysts meeting held this morning at 0930. I am sure we'll see some very positive comment during the next few weeks.

Can't really believe that given the results that DGM stayed neutral, until you look at the indices, AIM down nearly 1.7%! This is starting to hurt even the best companies and it's painful!

Recommended in Citywire today.

Cheers Madison