7th Jan 2016 08:13
LONDON (Alliance News) - Emerging markets-focused mobile media company Mobile Streams PLC saw its shares drop in early trade after its net assets were hit by the drop in the Argentinian peso.
The peso devalued by around 25% in December, due to the lifting of restrictions on the currency, which has hit the valuation of Mobile Streams' assets denominated in the currency and which will hit revenue and earnings.
Mobile Streams said most of the impact on its revenue would come in 2016 but said its earnings before interest, taxation, depreciation and amortisation for 2015 will take an GBP800,000 hit from the devaluation.
Simon Buckingham, the chief executive of Mobile Streams, said the company was taking a hit not only from the peso devaluation, but from the shift amongst Argentinian consumers away from subscribing for content towards advertising-funded models.
Shares in the company were down 22% on the news to 6.19 pence, one of the worst performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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