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(Alliance News) - Mobile Streams PLC on Monday reported narrowed annual loss for financial 2019, and recorded a widened loss in the first half of its 2020 financial year.
Shares in the company - which were suspended from trading in January over the late publication of results - were last quoted at 0.14p each. The shares will now resume trading on Tuesday.
For the year to the end of June, the mobile games distributor posted revenue of GBP1.3 million, down 57% from GBP3.0 million the prior year. Pretax loss was reported at GBP565,000, narrowed from from GBP931,000.
The fall in revenue was attributed to challenging trading conditions in Argentina. Revenue in Argentina - which accounts for 65% of the company's revenue - on a constant currency basis decreased by 18% from ARS58 million, around GBP726,674, to ARS48 million.
No dividend was proposed, unchanged from financial 2018.
In March 2019, Mobile Streams issued 40 million shares at GBP0.35 each. As at the end of June, the company had 140.8 million shares in issue.
For the six month period to the end of 2019, the company posted revenue of GBP271,000, down from GBP919,000 posted in the comparative period the year prior. Pretax loss widened year-on-year to GBP363,000 from GBP299,000.
During the period, Moble Streams' mobile internet revenues and its mobile operator revenues fell on increased regulation in the Indian telecom market as well as devaluation of both the Argentine peso and Indian rupee against the British Pound. On a like-for-like basis, revenues from Argentina during the period were ARS15.4 million, down from ARS20.8 million. India contributed revenue of INR2.1 million, down from INR38.8 million the year prior.
Looking ahead, the company said it plans to deliver growth through newly-developed products and will launch its new platform in early April. It added that revenue has not been affected by the Covid-19 outbreak but warned that a prolonged economic downturn could result in a rise in cancellations, subsequently hurting the business.
As at Friday, the company had cash of GBP100,000.
Separately, Mobile Streams on Monday announced a placing to raise GBP78,750 and a further conditional placing to raise GBP146,250.
The company intends to raise gross proceeds of GBP78,750 through the issue 98.4 million shares at
0.08 each and GBP145,000 by the conditional placing of 182.8 million shares at the same price.
The conditional placing is subject to shareholder approval. Proceeds realised from the fundraise is expected to cover the company's working capital requirements for the foreseeable future.
Following admission of the approved placing shares, Mobile Streams will have 488.9 million shares in issue.
By Ife Taiwo; ifetaiwo@alliancenews.com
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