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Mobile Streams chief excited by expansion into Brazil and India

Last updated: 07:20 29 Jan 2015 GMT, First published: 08:20 29 Jan 2015 GMT

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Mobile Streams (LON:MOS) chief executive Simon Buckingham has told investors of his excitement over the group’s expansion into key market such as Brazil and India.

Investors appear to share this excitement as, in early deals, the AIM technology firm's share advanced 12% to trade at 11.38p.

The smartphone app seller has revealed that its services can now be billed and marketed to consumers on all four major Brazilian mobile carriers. At the latest count the number of active subscribers in Brazil has now exceeded 35,000.

In India, meanwhile, talks are underway with the country’s top three mobile operators with a view to using their carrier billing services.

Mobile Streams said it expects to launch mobile Internet services before the end of the current financial year, and it has already signed agreements with two partners that provide games services to handset makers.

Efforts also continue in Africa, where the company is initially focusing on high potential growth markets such as Nigeria, Kenya and Ghana. This month, a deal was agreed with a Nigerian mobile operator for apps and games, and a separate arrangement with another Nigerian operator was expanded.

“Our strategy to offer our mobile internet services in large emerging markets is progressing,” Buckingham said in a statement.

“We remain excited about opportunities to grow our presence during calendar year 2015, particularly in Brazil and India."

Mobile Streams also provided information on the group’s trading in the six months to December 31, saying its performance was in line with expectations.

The financial performance of the group’s operations in Argentina continued to be affected by the devaluation of the Argentinian Peso - although revenues ‘in country’ remain in line with the same period of last year.

Group revenues for the half totalled £18.5mln, which is down from £27mln in the corresponding period last year.

The Argentinean business contributed some 86% of revenues in the six month period, while business in Mexico accounted for 11%.

Mobile Streams says earnings (EBITDA) will be positive for the half, though it will be significantly reduced compared with the same period last year (in which it reported £1.2mln).

At the end of December Mobile Streams had £3.4mln of cash and no debt, and it continued its policy of keeping most of its money outside of Argentina - £2.5mln or 77% of the cash was held outside the country.

"The sudden devaluation of the Argentinian peso in January 2014 presented operational challenges in Argentina which significantly reduced our reported revenues and profits but which we have now confronted,” Buckingham added.

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