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

IBG would certainly make a good fit for DGM. The on-line market is only in its infancy and we can expect big growth over the next few years as retailers try to target specific groups of people rather than blanket ads such as radio and TV.

Deal Group Media plc

Interim Results - Tuesday 6 September 2005





Deal Group Media plc, the full service online marketing group, will announce its
Unaudited Interim Results for the six months ended 30 June 2005 on Tuesday 6
September 2005.

Aegis, one of the big boys in the ad world is buying Glue one of the smaller online advertisers. IMHO I think we will see more consolodation in this area as the big companies try to bolster their online presence.

Good solid interims, plenty of optimism and confirmation of the sort of growth we can expect in the on-line ad market in coming years. I would expect DGM to start moving again once we get newsflow from them and the media in general during the run up to Christmas.

Does anyone know why DGM is going down and not up after results?

I have the same problem prom. Why the sudden drop?

B2B

A lot of people buy on the run-up to results and then sell - I can't see anything bad in the results, quite the opposite in fact and DGM's busiest months are still ahead. I'm holding.

On a downward slide. Anyone know if it's time to bail out?

Only you can decide that one prom. I got out a while ago.

MS

DGM is sliding downhill fast...sell down to 10p

Investor Chronicle 16 September 2005

Considering the growth prospects in online advertising, and an undemanding rating of 15 for 2006, the shares are good value

I agree les. But it would seem the marker sentiment is not here. Besides not a lot of news coming out.

LOL

MS

21 September 2005
Deal Group Media plc ('the Company')
Holding in Company

The Company received notification today from Fidelity International Limited
that, following a disposal of shares on 20 September 2005, they no longer hold a
notifiable interest in the issued share capital of the Company.

This is likely to be the reason for the fall in the share price.
Hopefull it will now recover.

Deal Group Media PLC
23 September 2005


Press Release 23 September 2005





Deal Group Media plc



('dgm' or 'the Company')



Trading statement





The Company expects that its profit before tax for the year to 31 December 2005
will show no increase on the same period last year and will therefore fall
significantly short of market expectations.



The primary reason for this is that there has been a fundamental change in the
terms of trade with a major long-standing client in response to external factors
within its own industry. This particular client accounted for some 30% of high
margin gross profit. The Company was informed of this change of terms at a
meeting yesterday afternoon, 22 September 2005. The impact is exacerbated by
the seasonality of the client's business which is weighted towards Christmas
sales.



The key change in terms of trade relates to the methodology that the client uses
to recognise a sale introduced by dgm's affiliate network. dgm continues to
trade with the client, albeit on a much reduced basis, and will be less reliant
on any single client for revenues or profit going forward.



Two other issues contributed marginally to the shortfall indicated above. A
supplier of advertising space has decided to market directly to advertisers and,
secondly, the conversion time of new leads to sales across the Company is
slightly behind expectations.



Adrian Moss, Chief Executive, said: 'It is very disappointing to lose revenue
and contribution to profit, but the cause is client specific rather than a flaw
in the overall business model, which remains robust and cash generative.
Excluding this specific revenue loss, sales continue to grow.



'The Company has augmented the management team recently with additional high
calibre executives and the business continues to be driven forward. The
implementation of dgmPro, the Company's new proprietary tracking technology,
remains on target and is an extremely important step forward for the Company.



'We are confident of maintaining our position as the UK's leading online
marketing group in a marketplace that is seeing year-on-year growth.'



- Ends -





For further information, please contact:



Media enquiries:
Abchurch Communications
Ariane Comstive / Julian Bosdet Tel: +44 (0) 20 7398 7700

ariane.comstive@abchurch-group.com

www.abchurch-group.com




Enquiries:
Deal Group Media plc
Adrian Moss, Chief Executive Tel: + 44 (0) 20 7691 1880
Andrew Dickson, Finance Director
www.dealgroupmediaplc.com



Panmure Gordon & Co
Richard Swindells Tel: +44 (0) 20 7459 3600

richard.swindells@panmure.com

www.panmure.com

Now we know what it was all about

As I predicted, it is below 10p now.

The timing of fidelity off-loading their stake seems extremely fishy, the FSA should be looking into that..........I fancy a small flutter on this one this week if it goes down any more I'm in for a bounce!

Although I sold out prior to fall (and rise for that matter), have been keeping tabs on this one. Other boards share your sentiment regarding information being made available to Fidelity and other major stake holders prior to the information being made available to small investors. The FSA has been mentioned in numerous posts by very unhappy investors.

I think this is one of many advertising/media firms both on and offline that are going to have to face very difficult conditions over the next 2 years or more. Whats the first thing a company does when its up against it, slash the advertising budget first of all.

I think there were warning signs with this one going back a few months ago now based on the macro rather than company specific problems. I got out just under the top but it gives me no great satisfaction to hear of holders being hit and complaining about large funds being forwarned.

Thats always happened and Im sure it will always be the case even though its obviously illegal. I certainly wouldnt buy for a bounce back given the macro economic outlook for the economy over the next few years.

If you still hold get shot I say.

cheers GF.

That's very nice of you goldfinger given that you started this
thread and were extremely bullish at the time.

If things are difficult for DGM then i do believe it's well priced in
now as the stock has gone from 20p bid to 7.25p bid in less than
a few weeks and the falls are always extended by the predictable
overhangs created by the institutions that sell out on bad news at
any price.

Seems to be plenty of support and when the sellers get cleared i
think a slight correction to 9-10p is on the cards but DYOR.