27th Sep 2013 09:52
LONDON (Alliance News) - Cellcast PLC Friday reported a sharp drop in revenues and profits in the first half of the year as demand for its services continued to fall, although it said cost cutting will improve its performance in the second half.
The company, which makes most of its money when television audiences participate in programmes via premium-rate phone lines, text or the web, reported a pretax loss of GBP914,824 for the six months to end-June, compared with a GBP118,950 loss a year earlier. Revenues declined to GBP8.3 million, from GBP9.8 million.
It said it was implementing further cost cutting to try and offset the declining demand for its services. It will moving its studio facilities out of London and reorganize its operational structure. It has already cut the amount of broadband bandwidth it holds, cutting broadcast costs by nearly a third.
The company will now focus on trying to increase profits in the UK by cross-selling internet and mobile internet-based services, and also test international markets, particularly in Africa and South America.
"The combination of the cost reductions and the revenue benefit being derived from new services and international markets will benefit the Group in the second half of 2013 and significantly reduce the operating losses," Chief Executive Andrew Wilson said in a statement.
Cellcast shares last traded at 0.825 pence.
By Steve McGrath; [email protected]; @SteveMcGrath1
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