viewMobile Streams PLC

Mobile Streams plunges after reporting huge decline in revenue

The company's CEO and both non-executive directors have volunteered a partial salary deferral of 50% of their respective remuneration

Mobile phone user
Cash at the end of June had fallen to around £130,000 from £1mln a year earlier

Shares in Mobile Streams PLC (LON:MOS) plunged by more than two-fifths following a grim trading update.

The provider of media entertainment content to mobile devices was hit by tough conditions in Argentina, which is its main market, and in India, the market into which it expanded in order to reduce reliance on Argentina.

Revenue in the year to the end of June plummeted to £1.3mln from £3.1mln but the underlying loss (EBITDA) narrowed to £1.0mln from £1.2mln.

Revenue in Argentina declined significantly during the fourth quarter of its financial year, primarily due to the devaluation of the Argentinian peso.

The cash-strapped company said its performance was also affected by the limited funds available for working capital purposes.

The company dismissed the managing director of its operations in Argentina in April, resulting in a further £110,000 in restructuring and redundancy costs on top of those previously announced.

READ Mobile Streams cuts costs to the bone

The company now expects to cough up around £400,000 related to its round of redundancies in Argentina.

In India, trading has been affected by the consolidation of mobile telecoms operators. On top of that, a number of the companies' partners in India have generated lower revenues during the year.

"Despite the falling revenue and the cost reduction actions implemented, the company continues to focus on potential business development opportunities and financing initiatives in order to ensure that the company has sufficient working capital to support its commercial activities for the foreseeable future,” said Simon Buckingham, the chief executive officer of Mobile Streams.

Quick facts: Mobile Streams PLC

Price: 0.15 GBX

Market: AIM
Market Cap: £211.13 k

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