2ergo ready for surge in demand
INTERNATIONAL mobile technology specialist 2ergo is expecting major growth in the coming years after a year of investment in technology and people.
The Salford Quays-based ocmpany which counts Disney,Transport for London and US media group Fox among its customers, invested more than £5m in technology and hired more sales and marketing staff around the world in a move to prepare for an excpected surge in demand.
As a result the group made a loss of £775,000 compared with a profit of £619,000 last year, on turnover of £21.4m compared with £22.6m a year ago. 2ergo said the results for the year to the end of August were in line with market expectations.
Chairman Keith Seeley said: “With the investment period behind us, we look forward to securing and servicing a greater number of blue chip clients and the SME community on a global basis.
“We are now well positioned to see the group prosper and enjoy strong growth over the coming years.”
Joint chief executive Neale Graham said company had made ‘excellent underlying progress’ and the major investment was already beginning to pay off.
Gross profit for the first quarter of the new financial year is up 34%.
Mr Graham said: “The board concluded 12 months ago that the growth of the mobile data channel was at a tipping point and resolved to capitalise on the opportunity by committing to a period of investment.
“We are pleased with the early signs of the returns on that investment and believe that it has paved the way for significant growth over the coming years.”
2ergo is one of the biggest commercial providers of mobile news in North America. Other international broadcast clients include the Australian Broadcasting Corporation and National Geographic.
In the sports broadcasting sector its Australian team is the mobile solution provider to Vodafone Hutchison Australia in support of its sponsorship of Cricket Australia.
Its application streams live video, scores, commentary, player statistics, news and highlights of major Australian cricket matches and tournaments to VHA subscribers.
In the UK, 2ergo has delivered cross-platform smartphone applications for ESPN which enable customers to subscribe to view in-game video highlights of English Premier League goals and match action.
