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LONDON (Alliance News) - Mobile Streams PLC said Wednesday its revenues and earnings before interest, tax, depreciation and amortisation for the year end-June will be behind the previous year due to the weakening of the Argentine peso and marketing expenses.
The mobile media company expects to post revenues of around GBP47 million, down from GBP53.9 million; 84% of its revenues were generated in Argentina.
Although it will see a positive EBITDA, it will be "significantly reduced" compared to the previous year, it said.
The Argentine peso weakened by 50% against the dollar during the period, while sterling strengthened 12% against the dollar.
Mobile Streams said that, as it books marketing expenses wholly at the time they are incurred, and its revenues are subscription based and booked over time, when it raises marketing expenditure its gross margins typically fall initially.
The company noted that its mobile internet active subscribers rose to 4.5 million from 3.4 million in the previous year.
It said that it enters the new financial year with a "clear focus" on expanding its operating base and diversify its revenue sources. It is also looking to add additional network operating billing connections in Brazil, Colombia and Mexico, and is exploring opportunities in emerging markets across Asia, Africa and India.
Mobile Streams expects to announce its final results in October.
Shares in Mobile Streams were trading down 8.9% at 18.00 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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