Shares digital

WIN (WNN:AIM) – Finals PTP: £1.68m (£2.32m) Divi: 2p (n/a)`

Profits may have dropped at the interactive mobile information and entertainment expert, but the payment of a maiden dividend suggests management remains confident the new strategic path laid down in 2006 will pay off handsomely.

High Wycombe-based WIN provides content management, interactive services, marketing and payment, and billing services to network operators, content providers and media firms. Its tailored solutions help customers drive up revenues from data and video rich traffic, while keeping costs down in what is a fast-moving market.

‘Our proposition is: operators are excellent at defining the one-size fits-all application, whether its voice mail, video mail, mapping and so forth,’ explains chief executive Graham Rivers.

‘But where they tend to have problems is niche markets – which for them could mean one or even two million subscribers. We are used to dealing with communities of say 50,000 to 100,000 subscribers, where it is difficult to develop one solution for all and the big players can’t respond quickly enough. We can move faster than they can.’

The acquisition of Switzerland’s Quattrocom, Pop-I Media and Pocket have expanded the £15 million cap's reach from London to Athens and also enhanced the breadth of services it can offer to customers, who include 70 international wireless operators.

A decline in premium rate services, as a result of the 'Crazy Frog' and TV phone-in competition scandals of 2005 and 2007, has handicapped the firm, but this is expected to slow in 2008, amid greater regulatory clarity. The shares in WIN held firm at 150p, well below autumn 2004’s 202p flotation price.

Shares says: A mid-single digit prospective PE means WIN is much cheaper than worthy peers 2Ergo (RGO:AIM) and Velti (VEL:AIM).

by: Russ Mould