6th Mar 2014 13:16
LONDON (Alliance News) - Zamano PLC Thursday saw pretax profit decline in 2013 as revenue dropped, hit by regulatory changes in the US and Ireland.
Zamano provides mobile marketing and content monetisation.
The company posted a pretax profit of EUR1.9 million, down from EUR3.6 million in the previous year, as revenue declined to EUR16.0 million from EUR19.2 million. Revenue was hit as it withdrew from the US following regulatory changes for mobile network operators, and regulation continued to impact its two principle markets, Ireland and the UK.
The company said that 2013 had been a "sharp reminder" of its need to introduce new products and expand into new territories.
Although revenues rose in the UK, revenues declined 42.6% in Ireland due to the introduction of a new Code of Practice by Comreg in July eliminated its Irish subscription based revenues, Zamano said. In the US Zamano said its aggregation partner had informed it that mobile operators were no longer running traffic in the US due to the change in regulatory policy, resulting in its withdrawal from the market.
Despite these declines, Zamano remained positive for its future, noting that it had expanded it operations into Eastern Europe, Australia and Norway during the year, and will explore a number of other new markets in 2014.
"The overall market environment for web and mobile commerce products and services remains buoyant," said Chief Executive Officer Ross Conlon in a statement. "During the year ahead, Zamano will seek to capitalise on the opportunities inherent in its markets by developing strategic partnership, licensing and joint venture arrangements with content providers and product owners."
Shares in Zamano were trading down 7.6% at 7.51 pence Thursday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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