27th Mar 2015 09:52
LONDON (Alliance News) - Messaging International PLC on Friday said it expects revenue from its text-to-landline service to decline in 2015 due to a change in arrangements with a key customer, though it said it expects better margins to partially offset the hit to its results and said it is seeing good demand for its TeleMessage service.
Shares in the company were down 17% Friday at 0.6 pence, making them the second worst performer in the AIM All-Share index.
The messaging services company said it has reached an agreement with an unnamed North American mobile carrier in recent months to transition its text-to-landline service from a standard SMS fee to a premium SMS fee.
Messaging International said the change has resulted in a lower volume of transmitted messages, with a corresponding decline in revenue from the customer. The company estimates a fall in revenue of around USD1 million from the service in 2015, though it expects the hit to its profit to be around USD400,000 due to the higher margin on the new service.
Elsewhere, the company said it has seen encouraging early demand for its business mobile messaging service, TeleMessage, launched commercially a few months ago.
By Sam Unsted; [email protected]; @SamUAtAlliance
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