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LONDON (Alliance News) - Shares in Mobile Streams PLC surged Tuesday despite the company saying that trading performance is still being hit by a weak Argentinian Peso, and cautioning that short term profitability will be hit by its "diversification plans" as it looks to launch its services into new emerging markets.
The mobile content company has been warning for some time that the devaluation of the Argentinian peso is taking its toll on its profits, and reiterated Tuesday that any further devaluation of the Argentinian peso would have a "negative impact on the company's future performance".
Mobile Streams said it is continuing with its plans to diversifying its revenues into new markets beyond Argentina, including in other Latin American markets such as Mexico, Brazil and Columbia.
"Additionally, the company continues to launch its mobile internet services into new emerging markets, such as Africa, Asia and India," the company said in an annual general meeting statement to shareholders.
The company said that to date it has signed five agreements covering various African markets.
"These diversification plans will require investment during the rest of the year, which will be reflected in reduced short-term profitability," it said.
Mobile Streams said its Mobile Internet subscription business continues to be robust, buoyed by the recent launch of new products on new local networks.
"The company is currently experiencing strong growth in its subscribers numbers in Brazil, with more daily net subscriber additions currently being added in Brazil than in our second largest market of Mexico," the company said.
It said that new emerging markets, such as those in Asia and Africa and India, are yet to contribute any significant subscriber numbers, which it said it doesn't expect to happen until the 2015/16 financial year at the earliest.
Mobile Streams shares were up 10.7% Tuesday morning at 16.05 pence, one of the best-performing stocks on the AIM All-Share index.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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