Demand for online ads to boost Innity revenue

MESDAQ-bound Innity Corp Bhd expects revenue to grow 70 per cent to RM15.8 million for its current fiscal year, driven by local organic growth and regional expansion.

The online advertising solutions provider, with a market share of 42 per cent, has over 190 customers and has executed over 800 advertising campaigns for local and global companies.

"We are expecting a compounded annual growth rate (CAGR) of above 63 per cent for revenue, as the domestic demand for online marketing increases," executive chairman Phang Chee Leong said at the launch of its initial public offering prospectus in Kuala Lumpur yesterday.

It posted a net profit of RM2.5 million against a revenue of RM9.3 million for the fiscal year ended December 31 2007. It forecasts net profit to jump 48 per cent to RM3.7 million in 2008.

Phang said the online advertising market in Malaysia is expected to grow from RM32.2 million last year to RM269.5 million in 2012, translating to a CAGR of 52 per cent.

With only a handful of competitors in the domestic market, Phang said the company's edge was its own in-house technology.

"We are actually selling our technology as a service, so you don't pay a licensing fee. Since our competitors use US products, we can provide competitive pricing and our technology enables faster integration in regional markets," he said.

Phang added that online marketing was suitable for small and medium industries because it not only served branding purposes but also the direct marketing of products.

Innity's current clientele include Sony, Johnson & Johnson, Citibank, Nestle, Maxis and publishers such as New Straits Times, The Star and The Edge.

Aside from domestic growth, Innity will expand its regional offices to Hong Kong and India next year using proceeds from its listing exercise.

It has two offices in Vietnam and plans to use its existing office in Singapore as the regional hub.

Under the IPO, Innity is offering 17 million new shares of 10 sen each at an issue price of 55 sen per share.