The award of contracts with a total value of $5.3 million was an important development for the relatively small mobile payments, marketing and advertising business, Mobile Embrace . The deals, won by Mobile Embrace subsidiary 4th Screen Advertising Australia, strengthen the parent group’s position in the fast growing mobile advertising market, but it also introduced new annuity revenues, the majority of which will be paid in the 2014-15 financial year.

The deals provide near to medium term earnings visibility, something that smaller companies such as Mobile Embrace are often unable to offer investors. While the size of the contracts may seem small, when compared with current revenues it is fairly sizeable, and importantly given the company’s substantial earnings margins will provide a significant profit boost.