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15 Jul 2008 07:00
Mobile Streams Plc
Trading Statement
15th July 2008
Mobile Streams Plc ('Mobile Streams' or 'the Company') is pleased to announce a positive trading update to shareholders ahead of the release of its 2008 interim results on 23rd September 2008.
During the first half of the year the Company achieved high single digit revenue growth compared with the same period in 2007 and generated a small trading profit* (2007: breakeven). Cash balances at 30 June 2008 were unchanged from the year end at £2.3m due to the positive trading result and reduced levels of investment in the company's proprietary software platform; this compares to £2.5m at the midpoint of 2007.
In the first half, Mobile Streams has increased its focus on key mobile operator accounts such as America Movil, AT&T, Optus, SingTel, Telefonica and Vodafone. Games and video services performed strongly in the first half on operators such as Optus and Telcel, as downloads within the Mobile Streams business rebalanced away from mobile music services.
During the first half, operators around the world continued to experiment with new mobile Internet business models by opening up the mobile Internet with the addition of search services such as Yahoo! and Google to their portals; this includes America Movil in Latin America who added Yahoo! and Vodafone Australia who added Google. Given its local market presence, established relationships with the operators and strong content offering, Mobile Streams believes that is well positioned to capitalize on these trends.
Mobile Streams expects to maintain profitability in the second half of the year. The Company will continue its recent focus on operational efficiency by earning returns on its past technology investments. Revenue across the business is being generated by matching the Company's considerable content catalogue more closely and fully with its extensive distribution footprint.
\* Trading profit is calculated as earnings before interest, tax, amortization, depreciation, share based compensation and asset impairments/revaluations.
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