Edison initiates coverage on Single Touch Systems

LONDON, May 16, 2014 /PRNewswire/ -- Edison Investment Research, a leading international investment research firm, announces the initiation of coverage of Single Touch Systems (SITO), a technology driven mobile media marketing company rolling out new messaging services, having diversified into the growing mobile media market.

Edison's report, Mobile media group with IP option value, discusses the group's aim to deepen its penetration into and beyond Walmart by extending its product range. This is now evident through its offering of over 40 messaging solutions for Walmart, of which a number of services (notably
e-receipts and online shopping notifications) offer substantial growth opportunities.

Having recently launched a range of innovative mobile media solutions, notably a location-based advertising service, SITO now has exposure to the rapidly growing media advertising market and has diversified its client base. Pursuing a strategy of IP monetisation, SITO reported its first IP monetisation success related to its abbreviated dial code technologies in November 2013. Last month, a landmark deal was announced with a major US broadcaster in relation to the assertion of its streaming media patents, adding an option value to the share.

The message notification service provides an organically growing, recurring revenue stream, which (excluding the cost of the IP division) has been profitable since Q213. Coupled with the considerable scope for growth from the Walmart relationship, we forecast the group to become EBITDA positive during FY14 on revenue growth of 19%.

For the full report see:
http://www.edisoninvestmentresearch.com/research/company/single-touch-systems

All reports published by Edison are available to download free of charge from its website www.edisoninvestmentresearch.com.

Key links/tags:Software, computer services, technology, mobile media, marketing, Walmart, IP monetisation

Overview of Company:
Single Touch Systems (SITO) is a technology driven mobile media marketing company specialising in push notifications, abbreviated dial codes, loyalty rewards and location-based marketing. With 20 patents and 29 in application, it also pursues a strategy of IP exploitation.

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SOURCE Edison Investment Research