SeeThruEquity Initiates Coverage on One Horizon Group (NASDAQ: OHGI) with Price Target of $4.05

NEW YORK, NY / February 2, 2015 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has initiated coverage of One Horizon Group, Inc. (OHGI) with Price Target of $4.05.

"OHGI provides mobile carriers with a complete, white-labeled solution that includes a mobile VoIP app that is offered under the carriers’ own brand. The company also offers a robust advertising platform that can deliver one-to-many or one-to-one ads and promotions, including location-based ads using GPS. OHGI’s platform helps carriers by making them relevant players in the rapidly growing mobile VoIP space while also recapturing revenues that are currently being diverted by third party Over the Top apps. The advertising platform can then be used to expand revenue opportunities across the subscriber base," stated Ajay Tandon, CEO of SeeThruEquity. "We are initiating coverage with a 12-month price target of $4.05 per share."

The report is available here: OHGI Initiation Report. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack’s. The report will also be available on these platforms. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.

Additional highlights from the report are as follows:

Proprietary VoIP solution solves carrier bandwidth issues

The explosion in the smartphone and tablet markets has caused an exponential increase in data traffic over the past few years. Maintaining and upgrading networks to meet this demand presents a large problem an enormous cost for mobile carriers. OHGI has developed software application platforms that optimize mobile voice, instant messaging and advertising communications over the internet, collectively, the "Horizon Platform". The Horizon Platform is the world’s most bandwidth-efficient VoIP platform, and it is based off of OHGI’s proprietary SmartPacket(TM) technology. Smartpacket(TM) enables greater bandwidth efficiency by reducing IP overhead and optimizing packet flow, delivery and playback. This technology can significantly decrease the strain on a carrier’s network while also providing demonstrated cost savings to the carrier through its increased efficiency. The 2013 Cisco VNI report estimated that global mobile data traffic will increase nearly 11x between 2013-2018, a 61% CAGR. By the end of 2014, the number of mobile-connected devices will exceed the number of people on earth, and by 2018 there will be nearly 1.4 mobile devices per capita.

White label solution for carriers to combat over the top apps

Fueling the growth of data traffic and diverting revenue streams from telecommunications carriers has been the growth of over the top ("OTT") applications. In the mobile world, apps such as WhatsApp, Viber and WeChat have become increasingly popular as an alternative to traditional SMS text messaging and have grown in popularity as their features, such as sharing pictures and videos, have expanded. These OTT apps have allowed 100’s of millions of subscribers to circumvent traditional mobile operators’ platforms. Consulting firm Ovum Ltd has estimated that OTT apps cost carriers $23.6 billion in 2013 and see that figure rising to $86 billion by 2020. OHGI offers mobile carriers a white label solution to brand their own OTT app and recapture lost customer revenue. In addition, OHGI provides carriers and enterprises with a powerful advertising platform to incorporate into their OTT app and expand revenue per subscriber.

Tier 1 customers and large backlog bode well for 2015

During 4Q14, OHGI announced agreements with two Tier 1 customers (defined as having a potential user market of over 50 million subscribers). The company finished 3Q14 with an order backlog of $56.1mn. This provides excellent visibility heading into 2015.

Please review important disclosures on our website at www.seethruequity.com.

About One Horizon Group, Inc.

One Horizon Group Inc.'s business is to optimize communications over the Internet through its wholly owned subsidiary, Horizon Globex GmbH, Baar, which develops and markets one of the world's most bandwidth-efficient mobile voice over Internet Protocol (VoIP) platforms for smartphones, and also offers a range of other optimized data applications including messaging and mobile advertising. Horizon Globex GmbH is an ISO 9001 and ISO 20000-1 certified company. The Company has operations in Switzerland, the United Kingdom, China, India, Singapore, Hong Kong and Ireland.

For more information on the Company, its products and services, please visit www.onehorizongroup.com.

About SeeThruEquity

SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. We do not conduct any investment banking or commission based business. We are approved to contribute our research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks, and distribute our research to our database of opt-in investors. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.

For more information visit www.seethruequity.com.

Contact:

Ajay Tandon
SeeThruEquity
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SOURCE: SeeThruEquity