logo-loader
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

AIM:MOS
Market: AIM
Market Cap: £211.13 k
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

NQ Minerals' David Lenigas updates as it looks to nearly double mining...

NQ Minerals PLC's (NEX:NQMI)(OTCQB:NQMLF) David Lenigas speaks to Proactive London's Andrew Scott after announcing they're to contract a second, high capacity mining dredge to boost its mining operations at the Hellyer project in Tasmania. The second dredge has a capacity to move 100 tonnes...

11 hours, 14 minutes ago

RNS

Board Change

4 days, 20 hours ago

Holding(s) in Company

1 week, 1 day ago

Director/PDMR Shareholding

1 week, 1 day ago

Total Voting Rights

1 week, 5 days ago

Holding(s) in Company

2 weeks ago

Change of Adviser

2 weeks ago

2 min read