Mobile Streams plc Trading update (0189S)
September 28 2017 - 2:00AM
UK Regulatory
TIDMMOS
RNS Number : 0189S
Mobile Streams plc
28 September 2017
28 October 2017
Mobile Streams plc
("Mobile Streams" or the "Company")
(AIM: MOS)
Trading update
Mobile Streams PLC (AIM: MOS), the emerging markets focused
mobile media company, is today issuing an update on its current
trading ahead of the publication of its audited results. As
announced on 26 July 2017 trading for the 12 months to 30 June 2017
was in line with expectations.
Argentina
On the 15 March 2017 the Company announced that it was
experiencing difficult trading in Argentina as a result of general
market conditions and regulation in the local market for mobile
content subscriptions. These conditions have continued into the
current financial year and whilst the Company expects that revenues
from the region will continue their reduction, this is seen as
being gradual and manageable over time on account of the Company's
continuing strong relationship with its carrier billing partner in
Argentina and that partner's commitment to the business.
India
Whilst the Company is still anticipating revenue growth from its
Indian operations in the current financial year, consolidation
activity has taken place amongst the local mobile carriers in India
with new market entrants disrupting the previous status quo and
attracting customers through aggressive promotion of reduced cost
data plans. The Company is of course working to secure agreement
with these new market entrants but to do so takes time. This,
coupled with certain revenue policy changes made by one of the
Company's key regional partners, has resulted in trading in India
being more challenging than the Company had previously anticipated.
At the same time the Company has also experienced issues with lower
than expected returns from monetising some subscribers to its
MobileGaming.com service on account of those subscribers being
unable to pay for the Company's services because of low or zero
balances in their pre-pay mobile account.
As a result of these market trends, the Company expects both
revenue and EBITDA for the current financial year to be materially
lower than current market expectations. However, in both Argentina
and India, the Company routinely renegotiates and redirects its
marketing acquisition costs when revenues deviate from prior
expectations in order to optimise the overall business margins.
The Company remains committed to both India and Argentina and
will issue a more detailed update at the same time as announcing
its final results in the coming weeks.
Enquiries:
Mobile Streams
+1 347 669 9068
Simon Buckingham, Chief Executive Officer
Enrique Benasso, Chief Financial Officer
N+1 Singer (Nominated Adviser and Broker)
+44 (0)20 7496 3000
Alex Price
Alex Laughton-Scott
This information is provided by RNS
The company news service from the London Stock Exchange
END
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September 28, 2017 02:00 ET (06:00 GMT)
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