Last checked at 14 May 2015 15:21
Trading Statement
Mobile Streams plc ("Mobile Streams" or the "Company") (AIM: MOS)
14th May 2015
Mobile Streams plc ("Mobile Streams" or the "Company") (AIM: MOS) updates its shareholders on its unaudited third quarter trading performance for the nine months ended 31 March 2015:
· Argentina revenues fell 12% from 324 million Argentine Pesos in the 9 months to end of March 2014 to 288m Argentine Pesos in the 9 months to the end of March 2015.
· Revenues of around £24.5m (£38m for the 9 months ended 31 March 2014). All revenue is from continuing operations.
· EBITDA* of around £455k (9 months ended 31 March 2014: £482k)
For the full financial year ending 30th June 2015, revenues are expected to be around £30m and EBITDA is expected to meet current market expectations. Year-end cash is expected to be around £2.9m, with no debt.
Commenting, Simon Buckingham, CEO said:
"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.
Faced with challenges in Argentina since the sudden Peso devaluation in January 2014, the Company has progressed with its strategy of seeking to stabilize its Argentine business whilst working to launch its mobile subscription services in other large emerging markets.
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. The Company has been seeking to secure billing connectivity in Nigeria so that it can launch its services in that large market too.
The Company is making investments in these sizable new markets with high growth potential, but is yet to earn any revenues in either India or Nigeria until after services are launched. These launches are expected to happen before the end of calendar year 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.
* Earnings before interest, tax, depreciation, amortization and share compensation.
** Active Subscribers are defined as customers who have paid to use one of the Company's Mobile Internet services in the past two months.
Enquiries:
Mobile Streams
Simon Buckingham, Chief Executive Officer +1 646 812 4749
Enrique Benasso, Chief Financial Officer
N+1 Singer (Nominated Adviser and Broker)
Jonny Franklin-Adams +44 20 7496 3000
Richard Salmond