Mobile data firm iTouch has reported its first quarter of pre-tax profit.

The firm reported a pre-tax profit of £476,000 (€704,000) for the first quarter of 2004 compared to a £2 million loss (€2.9 million) in the equivalent period in 2003. The company's turnover was up 49 per cent to almost £17 million sterling in the first quarter of 2004, compared to £11.3 million sterling in 2003.

The company reversed an operating loss of £2.2 million in quarter one of 2003 and converted it into an operating profit of £600,000. EBITDA (earnings before interest, taxes, depreciation and amortisation) before exceptionals was up to £1.7 million, from a loss of £1.2 million the year before - a 71 per cent increase.

The company's chairman, Mr Ivan Fallon, said iTouch had achieved another significant milestone with its first quarter of pre-tax profit.

"ITouch continues to be at the heart of the rapidly developing mobile data market and is well placed to take advantage of the enormous opportunities presented by this fast growing market," said Mr Fallon.

The company which operates in various markets, including the UK, Ireland and South Africa, supplies entertainment and information for mobile users.

Its selling expenses in the first quarter of 2004 increased to £3.7 million compared to 2003 when they were £0.9 million. It said this was due to an acquisition of the company Movilisto.

General administration expenses decreased to £4.3 million from £4.5 million in 2003.

The company entered into due diligence on a potential acquisition in early 2004, but negotiations ceased. This led to an exceptional item of £100,000.

The total number of employees decreased 4 per cent to 285 from 297 at the end of 2003. Net cash at the end of the first quarter 2004 was £14.4 million.