LONDON (Alliance News) - Mobile Streams PLC Thursday said earnings for the full year are expected to be in line with expectations despite revenue in Argentina falling in the third quarter of the financial year.
The mobile content provider said revenue from Argentina fell 12% to ARS288 million in the third quarter ended March 31, from ARS324 million a year earlier, due largely to the devaluation of the peso. Total revenue in the third quarter was GBP24.5 million whilst earnings before interest, tax, depreciation and amortisation was GBP455,000. It reported revenue of GBP11.0 million in the third quarter of its last financial year.
"Growth in our main market of Argentina has slowed in recent months due to a level of saturation amongst users of our services. As a result of the slowdown in Argentine revenues, we reduced our local advertising and marketing costs, a measure that has helped preserve our profits and cash," said Chief Executive Simon Buckingham.
For the first nine months of the financial year, revenue has reached GBP38 million with Ebitda of GBP482,000.
For the full year, the company is expecting revenue to come in at GBP30 million and said Ebitda will be in line with current market expectations. At the end of the financial year, Mobile Streams is hoping to have around GBP2.9 million in cash with no debt.
"The recent focus has been on Brazil, India and Nigeria. In Brazil, the company's subscriber base has passed 50,000 active subscribers for the first time. In India, the company is in the process of setting up a local subsidiary company, after which it plans to execute a number of direct billing contracts with some of the largest mobile network operators in that country so that it can launch its mobile internet subscription services," said Buckingham.
Mobile Streams said revenue from India and Nigeria is expected to begin making an impact before the end of 2015.
"The Company remains excited by the opportunities it has in all its emerging markets from Latin America to India to Africa. Further updates will be issued in July after the close of the financial year," said Buckingham.
Mobile Stream shares were down 3.9% to 6.25 pence per share on Thursday afternoon.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Mobile Streams (MOS)