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20 Jan 2009 07:00
Mobile Streams Plc
Trading Statement
20th January 2009
Mobile Streams Plc ('Mobile Streams' or the 'Company') issues an update to shareholders ahead of the release of its full year 2008 results, which are scheduled to be announced on 24th March 2009.
Trading EBITDA* profit is expected to be approximately £200,000 (2007: £1.2m loss)
Full year revenues are expected to be approximately £8.3 million (2007: £9.1 million)
Full year operating costs are expected to be approximately £3.9 million (2007: £6.2 million)
Net cash at 31 December 2008 was in excess of £2 million (2007: £2.3m)
Commenting on 2008 trading, CEO Simon Buckingham said: "Mobile Streams is delighted to have ended the year with trading profits* despite the economic environment. After the expansion and losses incurred in 2007, we focused our resources on better management of our dozen or so key operator relationships around the world. This led to the carefully planned reduction in revenues seen year over year which together with judicious cost reductions and favourable foreign exchange movements produced the significant improvement in EBITDA*.
The Managed Services division saw revenues decline in regions where Mobile Network Operators are increasingly looking to move to off-portal models. These declines were partially offset by continuing growth in on-portal revenues in Asia Pacific. The off-portal Consumer Services division was impacted by continued regulatory change and the slower than expected opening of the Mobile Internet.
Mobile Streams expects 2009 to be an exciting year with the continued opening of the Mobile Internet globally, the introduction of new handsets and evolving business models. The Company will continue to invest in its Consumer Services division in new markets by carefully evaluating and testing Mobile Internet services powered by its Ringtones.com brand to complement and supplement its core operator Managed Services. We are however mindful that this may be impacted by further changes in the regulatory environment, the speed at which the Mobile Internet matures and continued turmoil in the global economy.
In these challenging times we take comfort from being debt-free, having cash reserves in the bank and an established truly global footprint."
*calculated as profit before tax, amortization, depreciation, share compensation expense and impairment of assets.
Enquiries:
Mobile Streams Plc
James Colquhoun 020 7395 2020
Teathers
Jeff Keating 020 7426 9000
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