28th Sep 2015 12:07
LONDON (Alliance News) - Chat and adult interactive channel operator Cellcast PLC on Monday said it managed to retain its profitability in the first half despite a decline in demand for its core products and services in the UK, though it said new services set for the third quarter have been delayed.
Cellcast said its interactive broadcast revenue in the first half to the end of June was GBP5.6 million, down 11% from GBP6.3 million it made a year earlier. But its pretax profit was GBP230,000, down from GBP2.9 million a year earlier, though the 2014 number was pushed higher by a GBP2.8 million one-off payment. That payment meant total revenue in the year before was also sharply higher at GBP9.3 million.
Cellcast said is profit had been maintained due to the cost-cutting programme it launched in the first half and, despite weaker demand for its products, should revenue remain broadly flat in the second half, the group said it would expect its profitability to do the same.
It has continued to look to diversify its operations, though it said service launches due to take place in the third quarter have been delayed by technical and regulatory challenges and have been pushed back to the fourth quarter.
"Whilst we continue to see a decline in demand for our core products and services in the UK, the cost restructuring efforts undertaken in 2013 and 2014 have enabled us to maintain profitability. The board is actively pursuing new business opportunities for the company in the gaming and gambling sectors. Whilst progress has been slightly slower than anticipated, we hope to be able to provide an updated to shareholders on progress before the end of the year," said Andrew Wilson, Cellcast's chief executive.
Shares in Cellcast were down 23% on the news to 1.1 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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