26th Jun 2015 09:15
LONDON (Alliance News) - Messaging International PLC Friday posted a widened pretax loss as a result of an impairment of goodwill, as the company transitioned focus from its declining text-to-landline product towards its new secure mobile messaging product line.
The AIM-listed messaging services provider posted a pretax loss of GBP2.9 million, widened from a pretax loss of GBP92,073 in 2013, as revenue declined slightly to GBP3.6 million from GBP3.8 million, mostly due to a GBP2.6 million impairment of goodwill.
The company said that revenues in its text-to-landline product have declined, with some customers lost as a result of market consolidation, and following the year end the company agreed to switch its text-to-landline business model with a key mobile carrier customer in North America from a standard SMS fee to a premium SMS fee. This results in a lower amount of transmitted messages with a decline in revenue generated from that customer, but at a higher gross margin percentage.
Messaging International is developing its new product line, a new messaging application, and said a number of existing customers have already bought the new products and others are undertaking pilot trials.
Shares in Messaging International are untraded Friday morning. It last closed at 0.625 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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