25th May 2016 08:58
LONDON (Alliance News) - Chat and adult interactive channel operator Cellcast PLC Wednesday said it has continued to look for opportunities to diversify as its core UK interactive television business remains challenging, and reported a fall in pretax profit for 2015.
Cellcast reported a pretax profit of 451,438, down from GBP2.9 million, as revenue fell to GBP11.8 million from GBP15.1 million the year before. In the previous year the company recorded GBP3.0 million in revenue from channel management that did not recur in 2015.
The company said that its core UK interactive television business remained challenging with a continuing decline in revenue that was less sharp than in previous years due to a key competitor ceasing broadcasting mid-year. However, the initial uplift in revenue this produced in August and September failed to carry through into the last quarter of the year.
Cellcast has looked at opportunities in Africa, and secured a deal with a gaming operator in Kenya. Whilst this deal did not contribute any significant revenue in 2015, it is expected to make a positive contribution in the initial term of the contract.
If the contract is renewed when it comes to an end in June, this should provide some offset to the decline of the core UK business, Cellcast said.
"During the year revenue from our core services continued to decline, with customer numbers and gross margins coming under increasing pressure. The board has been looking at diversification opportunities, particularly in Africa, and during the period entered into an agreement to provide applications and services to a gaming operator in Kenya," said Chief Executive Officer Andrew Wilson in a statement.
"The directors consider that there is a significant amount of potential in the region to leverage the group's skills and expertise in interactive broadcasting and mobile transactional services," Wilson said.
Shares in Cellcast were flat at 1.35 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
CLTV.L