Last checked at 22 Jan 2016 07:00
Trading Statement
Mobile Streams plc ("Mobile Streams" or the "Company") (AIM: MOS)
22nd January 2016
Mobile Streams (or "the Company") updates its shareholders on its unaudited interim results for the six months ended 31st December 2015:
· Revenues of £8.1m (H1 2015: £18.5m)
· The Company expects to report a small EBITDA loss (H1 2015: £313K profit)
· Cash of £1.5M, with no debt (H1 2015: £3.2m)
· Foreign exchange effect reducing GBP equivalent of peso assets by approximately £700K (H1 2015: £70K)
The Company's financial year ends on June 30th, 2016. As reported in our RNS earlier this month, the Company's revenues suffered as a consequence of the devaluation of the Argentinian Peso.
Business Update
The Company has continued to deliver its strategy of launching subscription based and ad-funded Mobile Internet services in emerging markets.
The Company's new Indian subsidiary Mobile Streams India Private Limited has signed direct contracts for mobile internet billing with two of the three largest local Indian mobile operators, reaching approximately 350 million mobile customers. The Company has also recently signed a contract with a third party for billing connectivity on the largest local mobile operator, expanding the total reach of its subscription services to around 600 million local mobile phone users. The Company has paused its entry into Nigeria whilst it focuses on the opportunity in India.
The Company's ad-funded MobileGaming.com service has been expanded into several new markets beyond the initial launches in India, Argentina and the U.S.. The service is now live in the UK and Australia and is due to launch in the Company's second largest market Mexico shortly.
The Company has continued to develop proprietary technology to power its ad-funded games MobileGaming.com store. This includes developing a Download Manager to help consumers complete their downloads in places where the cellular coverage is variable, building a low end version of the service for older Android devices, building an installable app version of the service to supplement the mobile internet service, and further enhancing our wrapper technology. The Company has localized the service into multiple languages. We have also added several new advertisement types and mobile advertising networks and continue to work to optimize the service and customer experience.
Commenting, Simon Buckingham, CEO of Mobile Streams said:
"Although operations in Argentina have continued to be a challenge with its most recent devaluation, Mobile Streams has continued to focus on developing its ad-funded games service and its subscription services in India. We are excited by the opportunities for both of these services. We look forward to updating shareholders with more information on the performance of these services in due course."
Enquiries:
Mobile Streams +1 646 812 4749
Simon Buckingham, Chief Executive Officer
Enrique Benasso, CFO
Nominated Adviser and Broker
N+1 Singer +44 (0)20 7496 3000
Nic Hellyer
Alex Price