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

Looks like its ready to go into the blue.

cheers GF.

DAILY MAIL
*Last laugh for Branson as Virgin Mobile (VMOB.L) moves fast.
*Deal Group (DGM.L) making an impression at institutional meetings

cheers GF.

Found this whilst browsing:

Murmurs of an upbeat trading statement from Deal Group Media saw the online advertising agency gain 1p at 17p.

http://business.timesonline.co.uk/article/0,,8211-1440155,00.html

GF or anyone, do you know what BBC station and when Malcom Stacey's programme is to be broadcast, is sounds like a good listen,Im looking but not finding it

Will find out for you panic, remind me if I dont get back please. Its once a month anyway for the next 12 focusing in on the progress.

cheers GF.

Item on Tv today (Ceefax) saying that although the high street struggled over Xmas , the one bright point was sales via the Internet which were up 20% at 3 billion pounds. This can only add to DGM's business.

Panic, its Radio BBC South at approx 7.30pm and ther first one was last wednesday. Another 11 monthly ones to come.

Im a northner so Im not sure what this BBC south is , never heard of it.

cheers GF.

Following up on my note above, there have been a large number of stories in the press over the weekend (FT, Telegraph) about the boom in Internet shopping. I can't help thinking that DGM are in the right place at the right time.

Thanks GF : Im in the south west so I should be able to find it .Again many thanks.

No problems panic.

cheers GF.

Looks ready to tick up.

cheers GF.

More postive news for DGM:

http://news.bbc.co.uk/1/hi/business/4186285.stm

James

Yup WD should have a big impact on DGM.................................

Last Updated: Wednesday, 19 January, 2005, 10:33 GMT

E-mail this to a friend Printable version

Yahoo lifted by advertising boom

Yahoo is enjoying a boom in online advertising
Internet giant Yahoo says a boom in online advertising helped it to more than double fourth-quarter profits.
Excluding profits from the sale of some investments, it made a profit of $187m (143.2m) in the last three months of 2004, up 149% on $75m a year earlier.

Quarterly sales totalled $1.078bn, a 62% rise on 2003.

"This was also the year in which we witnessed the beginning of a tipping point in advertising," said chairman and chief executive Terry Semel.

Yahoo moved at an impressive pace in the fourth quarter

Terry Semel, Yahoo chief executive


Check Yahoo's share price

"[The year] in which marketers addressed the continued shift in consumers' changing media habits by investing more of their marketing dollars online."

Yahoo says it is the most-visited internet destination globally.

Switching online

Yahoo and others, such as Google, have been boosted by a flow of advertising revenue from television and other media to the internet.

Advertising-related revenue rose 67% from a year earlier and accounted for 85% of Yahoo's revenue, about the same as the 84% figure for the previous quarter.

Mr Semel said that search-related advertising and brand advertising, such as banner adverts, both grew strongly.

"Yahoo continues to manage the business well," said ThinkEquity analyst John Tinker, noting the breadth of Yahoo's business and its continued international growth.

'Strong growth'

Yahoo earned $840m in 2004, but that included a windfall from selling stock in Google.

Profits, excluding the sale of Google shares, for 2004 as a whole were $526m, compared to $238m in 2003. Annual sales were $3.575bn, a 120% surge on 2003.

"It looks like very strong organic growth," said American Technology Research analyst Mark Mahaney, who said the company's forecasts came in ahead of expectations.

In trading after the closing bell, Yahoo rose 1.8% to $37.86 on the Inet electronic brokerage system from its $37.18 Nasdaq close.

Yahoo forecasts full-year revenue to be between $3.36bn and 3.56bn.

cheers GF.

Cracking on up, just look at that chart.

cheers GF.

GF : Re Malcom Stacey, the radio station is BBC Radio Solent on 96.1FM or 103.8FM, see part of the e-mail reply below,

Thank you for your interest in the Evening Show presented by Sue Dougan.
Malcolm Stacey will be joining us again in early March but I don't as yet
have a date. He will not be appearing on a fixed date every month, just
as and when it is possible for him to do so.

Sue Dougan's show is between 7pm and 10pm, so might have to do a lot of listening!!

Cheers panic spot on.

regards GF.

great update from DGM , very positive, let's look forward to mid-march. Given that the Internet is the only medium showing good growth in advertising it can't be long before DGM starts attracting the attention of some of the big ad agencies, either here or abroad.

Superb Trading Statement from DGM......................

Deal Group Media PLC
20 January 2005


Press Release 20 January 2005


Deal Group Media plc

Trading update


Deal Group Media plc, the full service online marketing group, which comprises
the newly rebranded operating company dgm, provides the following trading update
as it enters its close period.

Trading conditions for the year ended 31 December 2004 continued to be very
strong and the Board expects the Preliminary Results to be in line with the
uplifted market expectations as stated in the second quarter of 2004.

Trading for the last quarter reflected a growing demand among Christmas shoppers
to buy online with Group turnover increasing to 4.45 million for Q4 2004
representing 232 per cent. of the equivalent period for 2003.

The internet advertising sector experienced strong growth during 2004 and now
accounts for 3.4% of ad spend in the UK (Interactive Advertising Bureau/ PwC).
Industry analysts maintain a positive outlook for the sector, fuelled by rising
online penetration through the growth of Broadband, and increased demand for
advertising with a visible return on investment.

Against this background, the Group's performance has outstripped that of the
sector, increasing its market share by offering a broader sales mix. This has
been achieved by focusing on client retention, taking advantage of cross-selling
opportunities, and new client acquisitions. Recent wins include Oxfam, Standard
Life Healthcare, Alliance & Leicester and ING Direct.

During the final quarter of 2004, the Group undertook a major restructuring in
order to provide future scalability. There have been a number of key senior
management appointments across all disciplines, a reorganisation of the sales
and account management functions, and products have been structured into three
distinctive branded offerings: dgmPerformance, dgmSearchLab and dgmAdNetwork.
Additionally, the Group has embarked upon a business continuity programme to
provide a more robust technology infrastructure in line with its growing
business levels.

As stated at the time of the Interim Results, the Board continues to look for
potential earnings enhancing acquisitions and will update shareholders of any
developments.

Adrian Moss, Chief Executive of Deal Group Media plc, said: 'Our performance in
the last year has been in line with market and internal expectations. These
targets have been achieved by improving the Group's sales mix, thereby creating
a number of cross-selling opportunities, and through the acquisition of new
clients.

'The recent restructuring has been undertaken in anticipation of further future
growth and our rebranded products mark a step change in the presentation and
marketing of our services. We look forward to reporting our Preliminary Results
in mid-March.'


For further information, please contact:


Enquiries:

Deal Group Media plc
Adrian Moss, Chief Executive Officer /
Jonathan Lines, Marketing Director Tel: +44 (0) 20 7691 1880

cheers GF.

Buyers coming in now in force.

cheers GF.

Falling back a little now, chance to buy before they go over 20p.

cheers GF.