logo-loader

Zamano warns on profits due to regulatory change

Published: 13:34 30 Sep 2016 BST

a smartphone and pencil and paper
Zamano provides digital content on smartphones

Smartphone content supplier Zamano Plc (LON:ZMNO) saw shares plunge over 35% as it warned operating profits would be hit by regulatory changes made to the way mobile operators charge users for content.

The firm had known about the Payforit initiative but its impact has only really been known once it was fully in place.

"Whilst performance in the second half of the year has been encouraging to date, it is now expected that changes introduced by MNOs (mobile network operators) will significantly impact the company's and its B2B customers' ability to acquire new subscribers on the Payforit platform in the UK with effect from 1 November 2016," Zamano said.

Thus, the anticipated improvement in operating performance in the second half "will not be achieved".

"Furthermore these changes will, it is anticipated, have a material adverse impact on the company's revenues in the UK going forward," it warned.

In terms of acquisitions, the group continues to pursue higher value-added business which will open additional avenues for growth, it said.

Last month, Zamano revealed an 80.2% rise in first half revenues which helped offset the bottom line impacts of a programme of new investment.

Sales amounted to €18.748mln for the six months to June 30, compared to €10.40mln for the same period of 2015.

Gross profit was down 9.7% to €2.33mln, while at €1.196mln adjusted earnings lowered by 13% compared to the first half of 2015.

Shares stood at 6.625p on the day - down 35.37%.

FTSE starts flat, Unilever jumps on ice cream overhaul - Market Report

The FTSE 100 has opened flat, with the largest gain coming from multinational consumer goods heavyweight Unilever. The company lifted more than 5% in early trading after launching plans to sack 7,500 workers as part of an overhaul of its ice cream business. Over in the pharmaceutical...

1 hour, 40 minutes ago