Trading Statement

15 Jan 2008 07:01

Mobile Streams plc15 January 2008 Mobile Streams Plc - Trading Statement 15th January 2008 Mobile Streams Plc ('Mobile Streams' or the 'Company') issues an update toshareholders ahead of the release of its full year 2007 results, which areexpected to be announced on 26th March 2008 - Full year revenues are expected to be approximately £9 million, upfrom £8 million in 2006 (+10%) - Trading EBITDA* expected to be below the guidance given in theInterim Results Announcement on 18 September being a loss of approximately £1.1million . - Trading EBITDA* includes one-off reorganisation and bad debt chargesincurred of approximately £500,000, relating to restructuring of the company,primarily in Europe, due to a rapid industry change from on-portal operator tooff-portal consumer revenue generation. Off-portal business generally requiresfewer staff to operate mobile content services due to decreased carrier sales,technical integration and up-front content licensing activities. - Managed Services division saw a strong performance in Asia, whererevenues more than doubled during the year, with new contracts such as SingtelSingapore outsourcing its music, games and download channels to Mobile Streams - Consumer Services division experienced strong growth from the MobileInternet, more than doubling its H2 revenues from H1, powered by theRingtones.com brand - Revenues evenly balanced between Europe, North America, LatinAmerica and Asia Pacific regions - Zoombak, a GPS device and service for locating cars and pets,launched commercially in the US in December 2007, in partnership with ourstrategic investor Liberty Media - Net cash at 31 December 2007 expected to be not less than £2 million - Loss before tax will include an impairment charge ofapproximately £1.6million for the write down of goodwill and intangible assets;this relates primarily to the European operation. Commenting Simon Buckingham said: "2007 was a transitionary year for the mobilecontent industry and the company. The performance of the European region wasdisappointing and action has been taken to address this. Growth in downloadsfrom operator portals was largely flat, whilst the Mobile Internet was still alargely experimental phenomenon. The Company expects in 2008 to see thecontinued gradual opening up of the Mobile Internet around the world ascompanies such as Apple and Google continue to strengthen their global mobilepresence. Following its restructuring into two operating divisions, MobileStreams is positioned in 2008 to take advantage of the trends towards operatoroutsourcing through its Managed Services division and the opening of the MobileInternet through its Consumer Services division. Going forward, the Companywill be minimizing costs and preserving cash. We go into 2008 with a simplifiedstructure and reduced cost base which The Board feel is appropriate for ouranticipated level of revenues." *calculated as profit before tax, amortization, depreciation, share compensationexpense and impairment of assets. Enquires: Mobile Streams 020 7395 2000Simon Buckingham, Chief Executive OfficerJames Colqhoun, Chief Financial Officer Landsbanki Securities (UK) Limited 020 7426 9000John CravenSimon Bridges About Mobile Streams Mobile Streams is a leading global provider of music, comedy and entertainmentcontent to mobile phones. The company's distribution platform, "Vuesia," is usedby some of the world's largest media groups and mobile phone networks includingVodafone and 3 in the UK, America Movil, Movistar and TIM in Latin America, Fidoand Rogers in Canada and Dobson in the US. "Vuesia" is Mobile Streams' full service enterprise mobile media managementsolution. "Vuesia" facilitates content ingestion, management, delivery, billingand reporting. Mobile Streams has subsidiaries in Germany, the US, Argentina, Brazil, Mexico,Chile, Colombia, Sydney and Singapore and has approximately 100 employees. For more information please go to www.mobilestreams.com This information is provided by RNS The company news service from the London Stock Exchange