26th Sep 2013 08:40
LONDON (Alliance News) - Zamano PLC, a mobile commerce company, saw share value drop nearly 22% Thursday morning after it posted decrease in revenues and declines in the US and Ireland.
In the half year ended June 30 the company posted revenues of EUR9.0 million, down from EUR9.5 million in the previous year. The company saw an increase in pretax profits to EUR984,000 from EUR946,000 in the previous year as it decreased administrative expenses to EUR1.3 million from EUR1.7 million.
Issues with the company's US aggregator significantly impacted sales in the US after it was no longer able to advertise its new subscription service, bringing US revenues down to EUR657,000 from EUR1.2 million the previous year. The company also saw declines in Irish sales after the introduction of a new code of practice by The Commission of Communications Regulation which it said had eliminated its subscription-based revenues in the second-half of 2012 and first-half of 2013. Irish sales dropped to EUR2.2 million from EUR3.7 million.
The company also took a financial charge of EUR262,000 in connection with interest on a loan from Pageant Holdings Limited, its largest shareholder.
In a statement the company said that its sales in new territories were EUR613,000, but it hopes that the proposed launch in three new markets would reduce its dependency on the UK and Ireland with time.
"The board and management, while fully aware of the many issues and challenges confronting the business on an on-going basis, nevertheless, anticipate a satisfactory trading outturn for the group in the year ending 31 December 2013," said Chief Executive Officer, Pat Landy, in a statement.
Shares in Zamano were trading down 22% at 10.40 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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