12th Oct 2015 08:12
LONDON (Alliance News) - Mobile Streams PLC on Monday expressed confidence for its future prospects, as the company continued to take steps to mitigate a hit from the devaluation of the Argentinian peso, reporting a rising in pretax profit for its recently ended financial year despite a drop in revenue.
Shares in Mobile Streams were up 22% at 5.78 pence, the biggest gainer on AIM.
The mobile media company reported a rise in pretax profit to GBP832,000 in the year to end-June, compared to GBP153,000 a year before, as a big drop in revenue to GBP29.1 million from GBP48.6 million was offset by a fall in cost of sales, selling, marketing and administrative costs.
Mobile Streams attributed the fall in revenue primarily to a reduction in revenue in Argentina. The company was hit by the devaluation of the Argentinian peso during 2014. It said the peso had suffered a modest devaluation against the pound during the year, and cautioned that any further devaluation of the peso would have a negative impact on the company's future performance.
The company said that challenges in Argentina had "spurred" it to develop new products and diversify into new emerging markets. In its current financial year the company intends to focus on expanding outside of Latin America, opening mobile internet services for apps and games in India and Nigeria, amongst other emerging markets.
It does, however, expect a majority of its revenue to be generated in Latin America in the current year.
"Despite the challenges in Argentina, the Board believes that the Group is well positioned to deliver growth in shareholder returns with established and newly developed ad funded and premium products and strong trading relationships, complemented by broader market growth in developing markets, which represent our key targets for future growth. We are long established experts in mobile content," said Chairman Roger Parry in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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