ComTel sells its mobile business
Communications product company ComTel has sold its mobile business to focus on its digital arm – Empowered Communications.
The announcement:
ComTel Corporation (ASX CMO) has announced the sale of its mobile phone business for a total of $8.9 million.
Managing Director Chris Meehan said the decision to sell the mobile business will allow ComTel to actively pursue potential acquisition opportunities in line with its strategy to build a significant performance based digital marketing group, and continue to grow its existing digital business – Empowered Communications.
“The performance-based industry has proven resilient throughout the GFC as advertisers required measurable results given reductions in budgets due to the market conditions. The segment is forecast to grow significantly over the next five years.”
“Empowered Communications has been very successful in riding this trend with around 35% growth in FY09 followed by 12% growth in FY10.”
Empowered Communications operates Australia’s largest online permission-based marketing and research database of ~500,000 Australians. Members are sourced via a network of six loyalty websites (each site rewards members in exchange for receiving research or emailed offers). Detailed demographic data is collected from each of its members to enable advertisers to conduct highly targeted, performance-based campaigns.
“Advertisers are looking to optimize their marketing spend and we can target consumers with highly relevant offers and campaigns that deliver a stronger result.”
Mr Meehan said ComTel has demonstrated the expertise to manage and build profitable online businesses. “Our strategy is very clear – to build or buy digital assets that deliver results for Australia’s leading brands and advertisers.”
“We now have the finance to seek out good businesses that align to our business model.”
Mr Meehan added that we will also be asking Shareholders to approve a change in the name of the company to Digital Performance Group Ltd at an Extra Ordinary Meeting to approve the sale.
Source: ComTel press release
