Mobile Streams plc Trading Update (0566F)
July 25 2016 - 1:00AM
UK Regulatory
TIDMMOS
RNS Number : 0566F
Mobile Streams plc
25 July 2016
25(th) July 2016
Mobile Streams plc ("Mobile Streams" or the "Company")
Full Year Trading Update
Mobile Streams PLC (AIM: MOS), the emerging markets focused
mobile media company, provides an update to its shareholders on its
unaudited financial and business performance for the 12 months
ended 30(th) June 2016:
-- Revenues of approximately GBP12.5m (12 months to end of June 2015: GBP29.1m)
-- Small EBITDA* loss (12 months to end of June 2015: profit of GBP1.1m)
-- Cash of GBP1.3m, with no debt (12 months to end June 2015: GBP2.1m)
Commenting, Simon Buckingham, CEO said:
"Mobile Streams has focused on three main objectives in its
recent business trading: expansion into India, stabilisation of its
Latin American business primarily in Argentina and preservation of
its cash balances. Generally, we have sought to invest the profits
from our Argentine operations into developing the India business
whilst seeking to maintain cash balances around the current levels.
In Argentina, revenues in the last financial year were in part
adversely impacted by the devaluation of the Argentine peso in
December 2015 as well as a wider slowdown in the mobile
subscription business in the local market.
In India, Mobile Streams India Private Limited was founded in
October 2015 to enable Mobile Streams to sign agreements with
Indian mobile network operators (MNOs), device manufacturers (OEM)
and other third parties.
As per the strategy in Latin America, the focus is very much on
the recurrent revenue generating subscription service in India,
with daily and weekly packages both being trialled. In February
2016, we launched our Mobilegaming.com service with the top three
Indian mobile operators with marketing campaigns coordinated by the
same team responsible for the continued success we have had in the
Latin America region over the past several years. There are
currently several thousand active subscribers to these
services.
In parallel to the mobile operator billing relationships, we
have signed a distribution agreement with a local OEM handset
manufacturer and are pursuing others with a goal to increase our
site traffic, while reducing our customer acquisition costs, which
is key to building our margins.
Looking ahead to the remainder of 2016 and beyond, our primary
objectives are to secure mobile billing with the leading seven or
eight mobile operators, progressively increase marketing spend to
grow the subscriber base, enhance our content and service offer by
partnering with local Indian companies and launching our browser
based (utilising HTML5) games service to become the leading
destination for games in India.
The Company sees potential for browser based gaming in both
Latin America and India. This HTML5 content works well across all
devices including Android, Apple, Tizen and Windows Phone. Devices
in emerging markets often have limited memory capable to store
downloadable applications so browser based gaming is attractive in
the region. Browser based content is not available from Google Play
and the App Store, providing differentiation from these competing
offerings.
The Indian mobile market is growing rapidly, the entrance of
Reliance Jio 4G network into the market this year and the upcoming
spectrum auction means the primary obstacle of poor data
connectivity is being addressed. With India already being the
second largest smartphone market, despite relatively low smart
device penetration, we are confident that Mobile Streams is well
placed to deliver solid returns for investors over the next few
years.
We look forward to updating shareholders with our progress at
our final audited results which we expect to report in
October."
* EBITDA is defined as earnings before interest, tax,
depreciation, amortization and share-based compensation.
Enquires:
Mobile Streams
+1 347 669 9068
Simon Buckingham, Chief Executive Officer
Enrique Benasso, Chief Financial Officer
N+1 Singer (Nominated Adviser and Broker)
+44 (0)20 7496 3000
Nic Hellyer
Alex Price
This information is provided by RNS
The company news service from the London Stock Exchange
END
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