Mobile Streams is updating its shareholders on its progress for the six months ended 31 December 2018.
- Direct agreements secured with all four mobile telecom operators in India
- Despite challenging economic conditions, Argentina trading was stable
- Unaudited revenues were approximately £920,000 (31 December 2017: £1,833,000), on a constant currency basis, taking into account the devaluation of the Argentinian Peso, unaudited revenue was £1,410,000. All revenue is from continuing operations
- £540,000 of cash and cash equivalents at 31 December 2018 (£1,466,000 as at 31 December 2017), with no debt
Commenting, Simon Buckingham, CEO of Mobile Streams said: “We are pleased that the team secured direct agreements with all of the major telecom operators in India. This enabled us to achieve our highest revenue quarter in the region since launch in 2015. Increased and more stringent regulations imposed by the telecom operators have led to reduced investment in support for value added services in the latter part of the period, has impacted Mobile Stream’s revenue targets. Looking ahead to 2019, despite ongoing concerns over the economy in Argentina, we expect trading to remain stable; in India, despite some uncertainties following the recent telecomm operator mergers and their support for value added services, we expect increased contribution from our most recent [billing] partner”.
At the conclusion of the calendar year, the Company’s local subsidiary in India had exceeded revenues of £420,000, the highest half year total since launch in 2015, primarily on its HTML5 games service, mobilegaming.com. Argentina revenue has been impacted by the Peso devaluation (48% year over year).
The majority of revenue in India has been driven by our billing connection with the largest local mobile phone operator, Airtel. The impact of the consolidation of the Indian telecoms market has hindered Mobile Stream’s revenue growth during the last six months, as a result of reduced support, by billing partners, for value added services such as mobilegaming.com.
However further clarity is expected in the Indian telecoms market as the Vodafone/Idea merger is finalised operationally. However the Board considers that it well positioned given its billing connections to the four largest telecom operators and the recent partnership with Reliance Jio.