Mobile Streams cuts losses as revenues halve, focus turns to India
Emerging markets-focused media company Mobile Streams turned in weakened revenues from its Argentinian operations after an "extremely challenging" trading year.
Revenues fell 47% to £3m as a result of "ongoing challenges" in the South American nation - which makes up 76% of Mobile Streams' revenue.
However the AIM-listed firm successfully narrowed its losses 39% in the year ended 30 June to £391,000, as administrative costs were cut 34% to £1.7m, while marketing costs were narrowed 17% to £638,000.
Losses per share improved to 1p from the 2.62p turned in a year earlier.
Chief executive Simon Buckingham, said: "We announced that trading conditions in Argentina were extremely challenging in the year under review as a result of macroeconomic conditions and regulation in the local market for mobile content subscriptions."
"These conditions are continuing but we are confident that our strong relationship with our carrier billing partner, which remains very supportive of our business, will enable us to manage this."
He is now focused on two main objectives: growing the subscriber base in India in order to increase revenue and establish new partnerships with key companies in the market.
Amid fierce competition but growing gaming revenue in the Indian telecom's industry, Mobile Streams has turned its focus towards working with "operators with stable operations" to provide greater opportunity for future returns. "While this has resulted in lower revenues than hoped for at the start of the financial year, recent performance in particular indicates grounds for optimism in 2019."
Looking ahead to the remainder of the current financial year and beyond, Buckingham said the primary objective is to increase revenues, while maintaining positive margin, in India and Argentina.
"The board retains the belief that India remains the largest opportunity for the company to deliver growth in shareholder returns while acknowledging there is scope to look at similar markets in the region to maximise the potential of its services."
At the end of its trading year, Mobile Streams had a cash balance of £1m and no debt.
As of 1000 GMT, Mobile Streams shares had tumbled 21.97% to 0.72p.