Mobile Streams plc
("Mobile Streams" or "the Company")
Trading Update
24th January 2012
London (AIM: MOS) Mobile Streams is pleased to update its shareholders on its half yearly financial and business performance:
· Revenues growth of 40% to c£7.4m (6 months ended 31 December 2010: £5.3m).
· Revenue growth of 51% when excluding the £403k in non-recurring amounts from Zoombak from the same period in the prior year
· Mobile Internet revenues grew 94% period over period to £4.9m
· The Board believes EBITDA in the first half ended 31 December 2011 will be around breakeven.
· Cash reserves of £0.7m at 31 December 2011, with no debt. (£1.1m at 30 June 2011)
Commenting, Simon Buckingham, CEO of Mobile Streams said:
"Mobile Streams delivered record revenues and revenue growth during the 2011 calendar year. In the month of December 2011, total revenues surpassed a new threshold level of £1.5m with Mobile Internet revenues exceeding £1m for the first time.
The strong revenue growth was fueled by the shift in the product mix away from ringtones type services towards apps and games. This change in content types led both to unexpectedly solid trading in the Mobile Operator segment as well as strong growth in Mobile Internet services, particularly in Latin America. Mobile Streams now has more than 1 million active subscribers in Argentina and 50,000 active subscribers in Mexico (defined as customers who have purchased content from the Company in the prior two month period).
In regards to Appitalism and apps services, a total of 37 Business To Business (B2B) customer contracts have now been fully executed for the distribution and provision of the Company's apps, games and eBooks content and services. These deals include new partnerships with several of the world's largest cell phone carrier and telecoms infrastructure companies in the U.S., Europe, Latin America and Asia Pacific. Of these deals, around 10 are currently live, with the others targeted to be launched before the end of the current financial year in mid 2012.
The Company expects to benefit more fully from Appitalism when the full commercial platform is in place, as demonstrated by the beneficial effects of the change in product mix towards apps and games seen in both the Mobile Operator and Mobile Internet segments during 2011.
The Company's profitability is yet to see the full impact of the top line revenue growth as a result of marketing and product investments. Due to the subscription nature of the Mobile Internet revenues, the Company incurs upfront marketing and subscriber acquisition costs in return for an ongoing recurrent revenue stream. Additionally, there have been continuing investments in product improvements to Appitalism such as the recently announced exclusive App Concierge for Android feature.
Moving into 2012, Mobile Streams believes that it is well positioned with both the right products and the ability to be able to sell them and is very excited by the opportunities it is seeing and looks forward to updating the market regularly with its progress with these initiatives during the course of the year."
ENDS
Mobile Streams Simon Buckingham, Chief Executive Officer Gabriel Margent, Chief Financial Officer | +1 917 751 9942 |
Victoria Tayler, Public Relations Manager | +41 79 4301915 |
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Nominated Adviser and Broker Singer Capital Markets Limited Jonathan Marren | +44 (0)20 3205 7500 |
