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Mobile Streams confident on prospects as moves into new markets

Published: 02:30 10 Oct 2014 EDT

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Mobile Streams (LON:MOS) is  confident about future prospects as it continues to diversify into new markets beyond Argentina.

In the year to end June, the firm had around £1mln of foreign exchange losses.

As previosuly flagged up,  the majority of these losses reflected a £750,000 non-cash revaluation of its Argentinian assets following the peso’s devaluation, but there was also a £240,000 cash charge incurred moving money out of Argentina earlier in the year.

Pre-tax profit was £0.2mln  compared to £4.8mln the year before, on revenue of £48.6mln compared to £53.9mln.

The firm had around £3.2mln in cash on hand at the end of August 2014, of which 17% is held in Argentina, and no debt.

The firm told investors: "The company continues with its strategy of diversifying its revenues into new markets beyond Argentina. Other Latin American markets in particular are expected to contribute to this diversification.

"Any further devaluation of the Argentinian peso would have a negative impact on the company's future performance. Additionally, the company continues to launch its mobile internet services into new emerging markets, such as Africa, Asia and India.

"The company has to date executed five agreements covering various African markets. These diversification plans will require investment during the rest of the year which will be reflected in reduced short term profitability."

Simon Buckingham, the group's founder and chief executive, said:  "We continued to work to further scale our mobile internet services in new markets, in particular in Brazil and Mexico, to supplement our longer established operations in Argentina and Colombia.

"We are delivering mobile entertainment content across a wide range of devices to an expanding customer base.  We are positive about the company's future prospects as we are seeing opportunities for long-term growth particularly in emerging markets across Latin America and further afield in Africa, India and Asia."

 

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