Detractors have castigated it as the epitome of trash television but Pop Idol, the ITV talent show that launched the careers of Will Young and Gareth Gates, is number one in the affections of one boardroom at least.
Mobile services group iTouch, which is 50 per cent owned by Independent News & Media, said heavy SMS voting for December's Pop Idol finals contributed to a 79 per cent increase in 2003 revenues and helped cut losses by more than half.
ITouch, which won the contract to supply mobile services to Pop Idol and Big Brother in the UK last year , saw turnover climb to £60.3 million sterling (€88.6 million), while losses were down to £14.5 million from £47.3 million in 2002. Fourth-quarter earnings were £18.2 million, up 12 per cent on the quarter and driven largely by Pop Idol fever.
The acquisition in June of Spanish telecoms group Movilisto contributed to the turnaround, which was in line with expectations, said chief executive Mr Wayne Pitout. Movilisto earned £4.8 million since its takeover.
The explosion in multimedia mobile phones and a strong youth market have created "highly favourable conditions" for iTouch, said Mr Pitout.
The performance of its "direct channel" service, set up in the State in December, has been "encouraging" and roll-outs are planned in the UK and Spain. Direct channel allows mobile phone users to buy ringtones, logos and other multimedia services by dialling a single number.
"The outlook statement is positive and indicates the company will continue to scale the direct model into new territory," said Mr Brendan Quinn of Davy Stockbrokers.
The company is likely to prioritise expansion into new markets in tandem with broadening services in existing territories, said Mr Shane Matthews of NCB Equity Research.
A breakdown of the financial results shows the group made profits of £1.7 million (before exceptionals) in the second half of 2003 while positive operating cash flow and fresh fundraising resulted in net cash reserves of £16.2 million. Basic loss per share was 4.5p down from 16.2p in 2002. The group took an impairment charge of £6 million and a restructuring charge of £2.5 million for the year.
ITouch employs 25 people at Citywest, Dublin and around 300 worldwide.
