Australian technology & software company Crowd Mobile (ASX:CM8) announced the launch of its services in South Africa, the next step of its global rollout program.
Crowd Mobile focused on mobile software and services and is operating in 40 countries in 28 different languages. The Company owns and operates a portfolio of trade marked software applications and messaging services for mobile devices, orientated toward the delivery of low cost consumer advice.
The launch into South Africa is the first move into the African continent, which present a strong growth opportunity for Crowd Mobile as the amount of smart phone and internet users are growing rapidly.
Crowd Mobile’s Chief Executive Officer Domenic Carosa commented on the announcement: “We are very excited to be entering the South African market. South Africa has a population of over 50 million people with a smartphone penetration rate of 40%.”
He calls the rollout a “very significant milestone” on its quest to expand its services on a global scale. He states that South Africa has one of the largest telecommunications markets in Africa and was therefore a logical step for CM8 to commence its African expansion here in South Africa.
Crowd Mobile’s long-term goals is to double its geographic presence with its m-payment distribution network. The past few months have been both successful and turbulent for Crowd Mobile and its shareholders. Following the acquisition of Netherland’s based company Track Holdings, CM8 announced a capital raising in the form of a pro-rata rights issue to raise $12.8m.
Since Wise-owl initiated coverage earlier this year CM8’s share price has performed well. The Track acquisition represents a transformational deal for Crowd Mobile, adding to the Company a strong earnings growth history and immediate scale. We remain attracted to its established income profile and view the Track transaction to be highly complementary and value accretive. The additional expansion of its services into the African continent emphasise the organic growth potential as well as management’s ability to pursue growth opportunities.
Author: Simon Herrmann
Oct 06, 2015
Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.