After reporting its best results ever this morning, Mobile Streams’ shares (LSE:MOS) dropped. That’s right, they dropped . . . almost 9.5% to 24.00p, proving that life can often be a conundrum. Who knows what investors are thinking?
The Full Year Trading Update
The company reported revenue of £20 million with no exceptional items. Having adjusted their fiscal year, the £20 million is compared to £15.5 million for the previous 18 month financial year. Revenues from Mobile Internet in the last 12 months were more than double the previous 18 month period at £15 million. Total mobile subscribers increased from 846,000 at June 2011 to 1,750,000 as of June 2012. The company has no debt and has cash on hand in the amount of £1.7 million. Perhaps that is where the rub lies for investors. Over 90% of Mobile Streams’ cash is stuck in Argentina. The Argentinean government imposed new currency controls at the beginning of 2012 that hinder the repatriation of cash from Argentinean operations to a parent company located outside of the country.
Executive Comments
Founder and CEO, Simon Buckingham, said, “Mobile Streams will be reporting recorded record growth in revenues, profits and cash generation for the most recent financial year. The Company’s annual revenues were more than four times larger than they were at the time of its Initial Public Offering around 6 years ago.” He added that, “The Company’s management remains upbeat for the new financial year, in which revenue is expected to be largely generated in Latin America in markets such as Argentina, Brazil, Colombia and Mexico. The Company is in the process of relocating our global finance function and recruiting a new Group CFO to be based in Argentina. We are excited with the Company’s positioning and with the opportunities for the Group as mobile services continue to grow in importance for most companies.”
Company Spotlight
Mobile Streams is a distributor and licensor of mobile apps and media for over 150 different content providers. The company was founded in 1999 and had its IPO on the London Stock Exchange in February 2006. Mobile Streams is probably best known for its Ringtones.com, which was launched in its first year of business. In 2010 Mobile Streams introduced Appitalism.com, an internet application storefront in 51 countries. Appitalism.com is not only a purchase site, but it incorporates social website features that empower user members to determine the best applications for the best mobile devices.