Mobile Streams plc Trading Statement (3789U)
12 Julio 2018 - 1:00AM
UK Regulatory
TIDMMOS
RNS Number : 3789U
Mobile Streams plc
12 July 2018
Mobile Streams plc
("Mobile Streams" or the "Company")
(AIM: MOS)
Year End Trading update
Mobile Streams PLC (AIM: MOS), the mobile media company, is
pleased to announce that trading for the 12 months to 30 June 2018
was in line with management's expectations.
Highlights:
-- Revenues of approximately GBP3.0 million (2017: GBP5.7 million);
-- EBITDA* loss reduced compared to prior year, as anticipated;
-- Net cash of GBP1 million (June 2017: GBP2.3 million); and
-- Revenues in India increased by approximately 25% to GBP0.5
million, with active subscribers** of more than 250,000 (2017:
200,000).
* EBITDA is defined as earnings before interest, tax,
depreciation, amortization and share-based compensation.
** Active subscribers are measured as consumers who have made a
purchase from the Company in the country in the past 60 days. For
like-for-like comparability, this is the same methodology the
Company uses to measure subscribers in its other markets such as
Argentina.
Commenting Simon Buckingham, CEO, said: "The Indian market
continues to undergo significant growth, consolidation, innovation
and evolution which, amongst other things, is driving greater
smartphone, data and games usage amongst consumers. Following
significant cost reductions implemented across the business, and
continuing reduced losses, the Company believes that it is well
placed for the year ahead".
Business overview - India
Active subscribers* in India increased to more than 250,000 at
the end of the financial year and Mobile Streams is now live with
direct billing connections to the four largest local Indian
carriers that offer such third-party billing connections. Total
potential billable audience is now estimated to be around nine
hundred million subscribers across these carriers. Three of these
billing connections accounted for the vast majority of Indian
revenues in the financial year ended 30 June 2018.
Smartphone penetration is still in the minority in India
(reaching an estimated 39% in 2019) meaning that hundreds of
millions of people are still to update to smartphones and 4G
feature phones. (see
https://www.statista.com/topics/4600/smartphone-market-in-india/).
For the current financial year, as well as growing its existing
business, the Company expects to focus on the following new revenue
streams in India:
-- Scaling up the fourth billing connection; and
-- As part of the Company's change in customer acquisition
strategy from paid for marketing to performance based pre-installed
applications it will look to add new handset embedding partners
with local carriers and local phone manufacturers.
Business overview - Argentina
In Argentina, trading was in line with our expectations, despite
a significant devaluation of the Argentine Peso of 43% year over
year of which 24% occurred in the last 2 months of the financial
year which reduced reported sterling revenues. Argentine revenues
are expected to fall slightly in the next financial year as a
result of this devaluation. Our largest billing partner in the
local market accounted for approximately GBP2.3 million in revenues
(2017: GBP2.6 million) during the year ended 30 June 2018.
The first three months of the recently ended financial year
showed a rise on monthly acquisitions for the organic subscription
business, with a peak in August 2017 of a total of 90,000
acquisitions. Acquisition volumes continued at approximately 50% of
2017 volumes until March 2018. As a result of dollar instability
from March 2018, Mobile Streams took the decision to restrict
business from some international and domestic advertising network
customers, which reduced the number of subscribers in the last
quarter of the financial year.
Premium services have been upgraded, including installable app
availability for compatible phones. Additionally, ad-funded
services have been deployed for non-converting gaming traffic
leads, where third party and our own IP games can be played.
In June 2018, Mobile Streams was selected by Movistar for making
Google and Facebook tests for three months, and if the results are
in line with expectations, we could continue using these channels
in the future.
Enquires:
Mobile Streams
+1 347 669 9068
Simon Buckingham, Chief Executive Officer
Enrique Benasso, Chief Financial Officer
N+1 Singer (Nominated Adviser and Broker)
+44 (0)20 7496 3000
Mark Taylor
George Tzimas
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END
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July 12, 2018 02:00 ET (06:00 GMT)
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