Mobile Streams Interim Revenue Drops, To Fall Further In Second Half

27th Mar 2018 13:20

LONDON (Alliance News) - Mobile Streams PLC said on Tuesday its interim loss narrowed though revenue dropped, and added it expects second-half revenue to be lower than that recorded in the first.

Revenue for the six months to December 31 fell 49% to GBP1.8 million from GBP3.6 million a year before, though its pretax loss narrowed to GBP568,000 from GBP745,000. Administrative expenses fell 43% to GBP879,000, and the cost of sales halved to GBP1.2 million.

The gross profit margin increased to 36.7% from 29.6% as a result of decreased marketing costs related to its Mobile Internet division.

As reported in February, the Indian mobile industry saw a number of changes in the period in the form of aggressive marketing strategies from "certain market participants", consolidation, and increased regulation.

"At the same time, consuming mobile content has never been easier for customers with enhanced networks, cheap smartphones and data making the opportunity in India, particularly for games content, a huge one," the company said.

"Whilst the directors are optimistic about the medium-term prospects of the Company and the potentially transformational opportunity presented by India, trading conditions in the Company's core markets of India and Argentina are unlikely to change materially in the second half of the current financial year meaning that the company expects that second half revenues will be slightly below those recorded in the first half of the year," Mobile Streams said.

Shares in Mobile Streams were down 11% at 0.937 pence on Tuesday.

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