Last checked at 26 Jul 2017 07:00
26th July 2017
Mobile Streams plc
("Mobile Streams" or the "Company")
(AIM: MOS)
Trading update
Mobile Streams PLC (AIM: MOS), the emerging markets focused mobile media company, is pleased to announce that trading for the 12 months to 30 June 2017 was in line with expectations.
Highlights:
· Active subscribers* in India quadrupled year on year to more than 200,000 members at the end of the financial year;
· active subscribers* in India have since grown to more than 250,000 members;
· revenues of approximately £5.6m (12 months to end of June 2016: £12.8m);
· an EBITDA** loss, as anticipated, (12 months to end of June 2016: EBITDA loss of £0.65m); and
· cash of £2.3m with no debt (12 months to end June 2016: £1.4m).
* Active subscribers are measured as consumers who have made a purchase from the Company in the country in the past 60 days. For like-for-like comparability, this is the same methodology the Company uses to measure subscribers in its other markets such as Argentina.
** EBITDA is defined as earnings before interest, tax, depreciation, amortization and share-based compensation.
During the second half of the financial year the Company continued to invest in India as it seeks to build a strong position in the country and grow subscriber numbers. This is anticipated to continue throughout the current financial year.
At the same time, the second half of the last financial year was also a busy period for the Company, with several launches in India, most notably:
· Mobile Streams is now live with direct billing connections to the three largest local Indian carriers. The addressable audience of potential customers across the three is approximately 650 million customers;
· the launch of both the Company's main daily and weekly games subscription services with the three largest carrier partners in India. Both services are available via downloadable android apps and HTML5 browser based games; and
· the launch of a direct billing connection with another large local carrier partner in India with approximately an additional 100 million potential customers.
In Argentina, trading remains in line with expectations as updated in March 2017.
Commenting Simon Buckingham, CEO, said: "The Indian market continues to undergo significant consolidation, innovation and evolution which, amongst other things, is driving greater smartphone, data and games usage amongst consumers.
"We are extremely pleased to now have direct billing connections with the top three operators and, whilst we are still in the investment phase of operations where progress can at times be uneven given the rapidly changing market, I remain convinced that India is the largest opportunity for the Company. To that end, it is particularly pleasing to see the continued strong growth in user numbers in India.
"We are well positioned to execute in the market and deliver shareholder returns."
Enquires:
Mobile Streams
+1 347 669 9068
Simon Buckingham, Chief Executive Officer
Enrique Benasso, Chief Financial Officer
N+1 Singer (Nominated Adviser and Broker)
+44 (0)20 7496 3000
Alex Price
Alex Laughton-Scott