Last checked at 1 May 2014 08:15
Mobile Streams plc
Trading Update
Mobile Streams plc (AIM: MOS) (the "Company" or "Mobile Streams") updates its shareholders on its unaudited third quarter (1 January to 31 March 2014 inclusive) trading performance:
- Revenues of £11m, compared to £14.5m in the third quarter of 2012/2013. Revenues fell when denominated in GBP primarily as a result of the devaluation in the Argentine Peso in January 2014. Revenues expressed in Argentine Pesos grew by 12% compared to the same quarter last year.
- Mobile Internet revenues of £10.5m, compared to £13.5m in the third quarter of 2012/2013.
- Active mobile internet subscribers surpassed 4.2 million, compared to 3.1 million at the end of the third quarter of 2012/2013. Active subscribers are defined as consumers who have purchased content from the Company in the past two months.
- Cash of £2.85m at the end of March 2014 with no debt. Around £600,000 was held in Argentina at the end of March 2014. This follows the Company's previously announced policy of moving its cash from Argentina into a portfolio of more stable currencies.
- Trading in line with market expectations.
Commenting, Simon Buckingham CEO of Mobile Streams said: "As previously reported in our January trading statement and Interim Results statement, the 2014 calendar year started with an unexpected sudden devaluation of the Argentine Peso, which disrupted the Company's performance in the third quarter of our financial year.
As a result, the Company lost money at an EBITDA level in January 2014 for the first time in the financial year. However, after successfully renegotiating some of our marketing expenses and increasing some prices in Argentina, EBITDA profitability resumed in February and March, although the Company made a small loss overall in the quarter.
The reduction in profits during the period was caused by a combination of operational and non-operational factors. One factor was adverse foreign exchange currency movements, in particular the weakening of the Argentine Peso against GBP. Additionally, the Company's marketing expenses grew more quickly than revenues.
We look forward to further updating shareholders on trading performance after the end of the current financial year, followed by our full-year audited results".
Enquires:
Mobile Streams +1 646 812 4749
Simon Buckingham, Chief Executive Officer
Nominated Adviser and Broker
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