Mobile Streams plc – Half Year Report

Mobile Streams plc – Half Year Report

Mobile Streams announces its unaudited interim results for the six months ended 31 December 2018.


  • Unaudited revenues were £0.9m (31 December 2017: £1.83m). All revenue is from continuing operations.
  • £0.55m of cash and cash equivalents at 31 December 2018 (£1.46m as at 31 December 2017), with no debt.

Post-period end update 

  • £0.29m of cash and cash equivalents as at 20 March 2019, with no debt. The cash balance includes £0.13m of net funds raised via the subscription which was announced on 27 February 2019.
  • The Company is currently working with some of the largest carriers in the India market: Vodafone-Idea, Jio and BSNL.

Commenting, Simon Buckingham, CEO of Mobile Streams said: “Progress in India remained steady over the recent period as the market settles in response to the consolidation amongst the mobile telecom operators. Since tighter marketing regulations were imposed, revenue targets have continued to be impacted. Looking ahead to the rest of 2019, we anticipate increased performance from our relationship with the newest entrant to the Indian telecom market, however, investment is on hold with Airtel, our leading partner. In Argentina, trading has been steady in 2019, whilst operations in Indonesia have been delayed until the latter half of the calendar year.”


The majority of revenue in India during the period, was generated from our HTML5 games service,, through our billing relationship with Airtel, one of the leading mobile operators in the country. These operations are currently on hold.

Airtel was recently usurped as the largest network by the Vodafone – Idea merger. Vodafone and Idea remain as individual entities with regards to our relationship with them, this development has prevented us increasing our business with these parties. 


Trading in Argentina remained stable with a small decline during the period. We continue with Movistar subscribers acquired via Google AdWords at declining volumes.  


During the period, both the Group’s Mobile Internet revenues and its Mobile Operator revenues decreased. This was primarily due to increased regulation in the Indian telecom market. Devaluation of both the Argentine Peso and Indian Rupee against the British Pound was an additional factor in this decrease. On a like-for-like basis, revenues from Argentina during the period were ARS$20.8m (6 months ended 31 December 2017: ARS$38.8m) with India generating revenue of INR$38.8m (6 months ended 31 December 2017: INR$ 28.1m).

Mobile internet

Mobile Streams’ performance during the six months ended 31 December 2018 was driven primarily from its Mobile Internet sales in India. During the period, Mobile Streams has continued with its strategy to develop a content offering direct to consumers across a wide range of mobile devices.

Mobile operator sales

Despite the recent signing of an agreement in India, with the third largest telecom operator Jio, this revenue stream has significantly reduced as consumer preference has moved from the operator branded stores to other third party channels such as iTunes, Google Play and our own service


Group revenue for the six months ended 31 December 2018 was £0.92m, a decrease of 50% to the comparative period’s figure of £1.83m. The gross profit was £0.41m which decreased by 39% during the period (2017: £0.67m). The gross profit margin increased from 36.7% to 44.2% as a result of decreased marketing (direct to consumer) costs related to the Mobile Internet division.

The Group recorded a loss after tax of £317k for the 6 months ended 31 December 2018 (2017: loss £587k), generating a loss per share of 0.32 pence per share (2017: 0.64 pence loss per share).

Adjusted loss per share (excluding depreciation, amortisation, impairments and share compensation expense) was 0.32 pence per share (2017: 0.63 pence adjusted loss per share).

Cash and cash equivalents

During the period, the Argentine Peso depreciated by approximately 22% against the British Pound. Current cash balances (as at 20 March 2019) are £ 0.29m.


The Directors have some reservations about the short term opportunities in India given the current developments amongst the telecom operators and increased regulations. Management’s strategy is to offset revenue decline in India by expanding operations into Indonesia. It is expected that trading conditions in Argentina will remain consistent and therefore revenues in the second half of the financial year will be lower than originally expected.

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