30th Mar 2016 09:18
LONDON (Alliance News) - Mobile Streams PLC said Wednesday it swung to a loss in the first half of its financial year, after revenue more than halved in its Mobile Internet division and it was hit by the devaluation of the Argentinian peso.
The mobile content company said it swung to a GBP141,000 loss for the six months ended December 31, from a profit of GBP208,000 for the same period the previous year, after total revenue fell to GBP8.0 million from GBP18.5 million. This was caused by a 56% fall in revenue from its Mobile Internet division to GBP7.9 million from GBP18.1 million.
Mobile Streams said its revenue was impacted by the devaluation of the Argentinian peso, with the currency having devalued 20% in December alone following the ending of foreign exchange restrictions.
"The impact of the devaluation in the income statement was a GBP100,000 reduction in revenue. The effect of on the balance sheet was a GBP800,000 loss recognized in the currency translation reserve account. For the remainder of the year, the revenue in pounds will be reduced by about 20% due to the peso devaluation effect," Mobile Streams said.
The group said that during the period it had worked to stabilise its Latin America operations and had grown its operations in India, in line with its strategy of launching subscription-based and ad-funded mobile internet services in emerging markets.
Following the year-end, Mobile Streams launched its ad-funded MobileGaming.com service in Mexico and is scheduled to launch the service in Colombia and Brazil shortly.
Shares in Mobile Streams were down 3.4% at 6.16 pence on Wednesday.
By Hannah Boland; [email protected]; @Hannaheboland
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