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

mackem

Falling knives and all that. Timing is everything believe me I know as I usually get it wrong.

LOL

MS

Maybe that was the bottom mickey ?

Nobody managed to get that 5.1p and looking at those big
trades the seller that must have been depressing the price
has got out at 5p, still dont fancy the chase but it should
be over 6p surely.

I binned my cryastal ball long ago mackem. Who knows mms are a law unto them selves.

LOL

MS

Somebody sneeked a 500k in to take out the mm on the brief 5.25p offer.

Just as Google are talking of a 'sea change' among advertisers which has propelled their revenues for on-line advertising and their share price to record highs, DGM has come up on my radar as a recovery stock and I have been browsing their website. But no sign that I can find there of any enthusiasm for on-line advertising from the company or from their customers. I think the website has a tired, neglected feel about it with none of the dynamism that is often to be found among media companies. If others think likewise, possibly this accounts for the depressed sp and if I were a shareholder, I think I would be suggesting to the company that they brighten up their image.
Meanwhile, I think there is massive potential out there, so I'm continuing to look for a company in this field. Any suggestions?

Take a look at GMC - a Google of gambling search engines. Earlier this year they acquired gambling.com for 10 mil. It is a No. 1 search engine for gaming sites. Most of their revenue (60% according to Arthbutnot Securities come from advertising- pay per click). Last week upgraded to STRONG BUY by the same broker. Bottomed out with the rest of the sector on Thursday, bounced from support on Friday. Lots of upside! DYOR!

britshare: Thanks for the info about GMC's advertising activities; they look to me a better bet than DGM, so are now on my watch list. I am posting also on the GMC thread in case others are unaware of their versatility.

Some good news at last with a major shareholder buying 2.75mil,
the sinking ship seems to have steadied at last and with most of
the mm's on the 5.5p bid can this be the recovery ?

DEAL GROUP MEDIA PLC

2. Name of shareholder having a major interest

I-SPIRE CORPORATION LIMITED

3. Please state whether notification indicates that it is in respect of holding
of the shareholder named in 2 above or in respect of a non-beneficial interest
or in the case of an individual holder if it is a holding of that person's
spouse or children under the age of 18

HELD BY 2 ABOVE

4. Name of the registered holder(s) and, if more than one holder, the number of
shares held by each of them

I-SPIRE CORPORATION LIMITED

5. Number of shares / amount of stock acquired

2,750,000

RNS also state I-Spire now hold 18.14%. Obviously building a large stake in the company - bid possible?

Price is solid now and now without any sellers the mm's are gradually
moving higher, it's 3 bid 1 offer at 5.75-6p so next move could be a
break back above 6p, wish i had bought some at that 5.1p now.

Might be a few bob in this. Speculative though.

cheers GF.

A lot of activity today - might just have bottomed out

I have put my toe in the water

baza

Now can anyone explain that 10m "sell" ? - please - x trade

Baza

That trade is very good for the share price !

Somebody had 10 million share to sell and found a buyer without
having to dump on the market and cause a very big overhang, because
it was 10 million shares the seller was happy to let them go at a slight
discount to the current bid price of 7p, had they tried to dump them on
the open market the price would have retraced back to the 5p levels, the
buyers perk is to get their hands on a big block of stock for a cheap price
without having to buy them on the open market which would have caused
the price to rise, hence both parties very happy with the deal.

Thank you Mackem

More stock building on this one its looking rather tempting after the pull back

Is the header appropriate? Cue sycophants.....

Not a shareholder here but thought it may interest you to know that there is an interview with Adrian Moss on CNBC - Thursday 29/12 at 12.45 CET

Thought it may interest you that there is today, (29/12), an interview with Adrian Moss on CNBC at 12.45 CET.

Didn't see this interview. Could you please summarise what it said?