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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Mobile Streams Plc | LSE:MOS | London | Ordinary Share | GB00B0WJ3L68 | ORD 0.01P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.0375 | 0.035 | 0.04 | 0.0375 | 0.0375 | 0.0375 | 0.00 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Communications Services, Nec | 1.82M | -3.79M | -0.0007 | -0.57 | 2.13M |
From Apr 2019 to Apr 2024
TIDMMOS
RNS Number : 9965I
Mobile Streams plc
27 March 2018
27 March 2018
Mobile Streams plc ("Mobile Streams" or the "Company") (AIM: MOS)
Interim results
Mobile Streams announces its unaudited interim results for the six months ended 31 December 2017. These were in line with management's expectations as set out in the Company's trading update on 2 February 2018.
Highlights
-- Customer renewal base* in India exceeded 750,000 customers
-- Growth enabled by our billing connection for the largest local mobile phone operators four contracts entered into with a fifth in advanced discussions
-- 180,000 active paying subscribers** in India -- Trading in Argentina was stable throughout the period
-- Unaudited revenues were GBP1.8m (31 December 2016: GBP3.6m). All revenue is from continuing operations
-- GBP1.5m of cash and cash equivalents at 31 December 2017 (GBP2.8m as at 31 December 2016), with no debt
Post-period end highlights
-- Customer renewal base* in India has almost doubled to over 1.75 million currently -- 210,000 active paying subscribers** in India currently -- Trading in Argentina remains stable -- GBP1.2m of cash and cash equivalents at today's date, with no debt -- Company is now working with all major carriers in the India market
-- Customer renewal base* in India showing strong growth with more than 500,000 customers added since the start of March 2018
* Customer renewal base is the active paying subscriber base plus the renewal base of zero-rate customers, whereby customers who have zero balances in their pre-pay mobile account who want to use MobileGaming.com are subscribed to the service with billing attempts then subsequently made to turn them into active paying subscribers.
**Active paying subscribers are measured as consumers who have made a purchase from the Company in the country in the past 60 days. For like-for-like comparability, this is the same methodology the Company uses to measure subscribers in its other markets such as Argentina.
Commenting, Simon Buckingham, CEO of Mobile Streams said: "We are pleased that the team has grown the mobileGaming.com customer renewal base above 1.75 million subscribers. Our primary focus during the period was to reduce losses with our key accounts in India through a process of marketing and customer churn optimisation as well as working to convert zero rated mobileGaming.com customers into active paying subscribers. With the Argentina business stabilised, we intend to continue to focus on achieving active paying subscriber growth in India which in turn drives our revenues so that we can build up volumes to cover our operating expenses."
India
Mobile Streams India Private Limited, exceeded the important milestone of reaching a customer renewal base of 750,000 on its Android and HTML5 MobileGaming.com games subscription services. Subsequently, the customer renewal base has climbed to more than 1,750,000. The number of active paying subscribers is currently 210,000.
Most of the growth in customer renewal base to date has been driven by growth enabled by the Company's billing connection for the largest local mobile phone operator. The Company has faced certain challenges with its other billing partners which have hindered growth over the past six months. Due to consolidation in the Indian market, one of the Company's operator billing partners has recently filed for bankruptcy. The Company is working on launch of services with a fifth telecom operator and anticipates that this will take place over in the next few months.
As announced on 2 February 2018, the Indian mobile industry saw a number of changes, in the form of aggressive marketing strategies from certain market participants, consolidation and increased regulation, in the first half of the financial year which have impacted telecom operators and, in turn, the Company. At the same time, consuming mobile content has never been easier for customers with enhanced networks, cheap smartphones and data making the opportunity in India, particularly for games content, a huge one.
Argentina
Trading in Argentina remained stable during the period and this is expected to continue throughout the remainder of the financial year.
OPERATING REVIEW
During the period, both the Group's Mobile Internet revenues and its Mobile Operator revenues decreased. This was primarily as a result of consumers steadily update their phones from legacy feature and flip phone models to smartphones, resulting in less use of operator content portals less. Consumers generally use independent portals, as well as the open mobile internet, more actively. The Company has adapted to this trend through cost and marketing optimisation and in focusing in the potential growth in markets like India.
The Company's primary focus during the period was therefore to reduce losses with key accounts in India through a process of marketing and customer churn optimisation as well as working to convert zero rated mobileGaming.com customers into active paying subscribers.
Mobile internet
Mobile Streams' performance during the six months ended 31 December 2017 was driven primarily from its Mobile Internet sales in Latin America. 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 in a number of large emerging markets. This is in addition to the Company's business of providing content to mobile network operators and other business partners.
As in previous years, Latin America, primarily Argentina, accounted for the majority of revenue in the first half of the current financial year. This is anticipated to continue to be the case for the remainder of the current year and beyond until such time as the revenues from India reach significant scale.
Mobile operator sales
The Group has several contracts with mobile operators that allow the distribution of content through their mobile portals. Revenues from this stream have reduced by more than 49% in comparison with the previous period which is partially because of consumer preferences.
There was a reduction in the number of consumer visitors to these portals, which has been a continuing trend for several years. The Group's teams share and implement the best retailing practices in order to increase the conversion of visitors into customers to mitigate the natural decline in this revenue stream as the market changes.
FINANCIAL REVIEW
Group revenue for the six months ended 31 December 2017 was GBP1.8m, a decrease of 49% from 2016's figure of GBP3.6m. The gross profit was GBP0.7 which decreased by 38% during the period (2016: GBP1.1m). The cost of sales on mobile internet revenue is much higher than on operator revenue because of marketing costs resulting in a lower overall gross profit margin. The gross profit margin increased from 29.6% to 36.7% as a result of decreased marketing (direct to consumer) costs related to its Mobile Internet division.
The Group recorded a loss after tax of GBP587k for the 6 months ended 31 December 2017 (2016: loss GBP879k), generating a loss per share of 0.64 pence per share (2016: 2.17 pence loss per share).
Adjusted loss per share (excluding depreciation, amortisation, impairments and share compensation expense) was 0.63 pence per share (2016: 1.89 pence adjusted loss per share).
As announced on 2 February 2018, as a consequences of these challenges, the Company has sought to refocus and reduce its marketing spend to approximately 20% of the levels in June 2017 with a view to protecting EBITDA and cash.
Cash and cash equivalents
During the period the Argentine Peso depreciated by approximately 15% against the British Pound during the semester. Current cash balances are GBP 1.27m.
OUTLOOK
Whilst the Directors are optimistic about the medium-term prospects of the Company and the potentially transformational opportunity presented by India, trading conditions in the Company's core markets of India and Argentina are unlikely to change materially in the second half of the current financial year meaning that the Company expects that second half revenues will be slightly below those recorded in the first half of the year. With the Argentina business stabilised, the Company intends to continue to focus on achieving active paying subscriber growth in India which in turn drives revenues enabling it to build up volumes to cover operating expenses.
CONSOLIDATED INCOME STATEMENT
Hot Features
Premium
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
31 December 31 December 30 June
2017 2016 2017
GBP000's GBP000's GBP000's
Revenue 1.833 3.640 5.695
Cost of sales (1.162) (2.563) (3.942)
------------------------- ----------------------- ----------------------- -----------------------
Gross profit 671 1.077 1.753
Selling and marketing
costs (440) (349) (769)
Administrative expenses
** (879) (1.549) (2.598)
Operating Loss (648) (821) (1.614)
Finance income 82 78 98
Finance expense (2) (2) (2)
----------------------- ----------------------- -----------------------
Loss before tax (568) (745) (1.518)
Tax expense (19) (134) (209)
Loss for the period (587) (879) (1.727)
========================= ======================= ======================= =======================
Attributable to:
Attributable to equity
shareholders of Mobile
Streams Plc (587) (879) (1.727)
========================= ======================= ======================= =======================
Earning Per Share
Pence per Pence Pence
share per share per share
Basic loss per share (0,641) (2,167) (2,620)
Diluted loss per share (0,641) (2,167) (2,620)
* *Administrative expenses include depreciation,
amortisation, impairment and share based compensation.
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
31 December 31 December 30 June
2017 2016 2017
GBP000's GBP000's GBP000's
Loss for the period (587) (879) (1.728)
Exchange differences on translating
foreign operations (145) 74 (103)
Total comprehensive loss
for the period (732) (805) (1.831)
===================================== ==================== ====================== ====================
Total comprehensive loss for the
period attributable to:
Equity shareholders of Mobile
Streams Plc (732) (805) (1.831)
------------------------------------- -------------------- ---------------------- --------------------
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
31 December 31 December 30 June
2017 2016 2017
GBP000's GBP000's GBP000's
Assets
Non- Current
Intangible assets - - -
Property, plant
and equipment 12 8 16
Deferred tax
asset 155 - 155
----------------------- ----------------------- -----------------------
167 197 171
Current
Trade and other
receivables 1.261 1.870 1.571
Cash and cash
equivalents 1.466 2.780 2.260
2.727 4.650 3.831
Total assets 2.894 4.847 4.002
=================================== ======================= ======================= =======================
Equity
Called up share
capital 182 1.164 182
Share premium 12.463 11.482 12.463
Translation
reserve (3.398) (3.076) (3.253)
Retained earnings (8.136) (6.723) (7.553)
----------------------------------- ----------------------- -----------------------
Total equity 1.111 2.847 1.839
----------------------------------- ----------------------- ----------------------- -----------------------
Liabilities
Current
Trade and other
payables 1.516 1.463 1.649
Current tax
liabilities 267 537 514
----------------------------------- ----------------------- ----------------------- -----------------------
1.783 2.000 2.163
Total liabilities 1.783 2.000 2.163
----------------------------------- ----------------------- ----------------------- -----------------------
Total equity
and liabilities 2.894 4.847 4.002
=================================== ======================= ======================= =======================
CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
31 December 31 December 30 June
2017 2016 2017
GBP000's GBP000's GBP000's
Operating activities
Profit before taxation (568) (745) (1.518)
Adjustments:
Shared based payments 4 97 118
Depreciation 3 14 19
Interest received (82) (78) (98)
Changes in trade and
other receivables 310 706 1.005
Changes in trade and
other payables (133) (132) 54
Tax paid (228) (460) (692)
Interest paid 2 (2) 2
Total cash utilised in
operating activities (692) (600) (1.110)
----------------------------------- ----------------------- ----------------------- -------------------------
Investing activities
Additions to property,
plant and equipment 4 (1) (15)
Interest received 82 78 98
Interest paid (2) (2)
Net cash generated from
investing activities 84 77 81
----------------------------------- ----------------------- ----------------------- -------------------------
Issue of share capital
(net of expenses paid) - 1.993 1.969
Net cash generated from
financing activities - 1.993 1.969
----------------------------------- ----------------------- ----------------------- -------------------------
Net change in cash and
cash equivalents (608) 1.470 940
Cash and cash equivalents
at beginning of period 2.260 1.367 1.367
Exchange (loss)/ gain
on cash and cash equivalents (186) (57) (47)
Cash and cash equivalents,
end of period 1.466 2.780 2.260
----------------------------------- ----------------------- ----------------------- -------------------------
CONSOLIDATED STATEMENT OF CHANGES
IN EQUITY
Called Share Translation Retained Total
up share premium reserve earnings Equity
capital
GBP000's GBP000's GBP000's GBP000's GBP000's
Balance at 1 July
2016 74 10.579 (3.150) (5.943) 1.560
Credit for share
based
payments - - - 97 97
Transactions with
owners - - - 97 97
------------------ ----------------------- ----------------------- ----------------------- ----------------------- ----------------------
Loss for the 6
months
ended 31
December
2016 - - - (879) (879)
Exchange
differences
on translating
foreign
operations - - 77 - 77
Issue of share
capital
(net of expenses
paid) 108 1.884 - - 1.992
Total
comprehensive
income for the
period - - 77 (879) (802)
------------------ ----------------------- ----------------------- ----------------------- ----------------------- ----------------------
Balance at 31
December
2016 182 12.463 (3.073) (6.725) 2.847
------------------ ----------------------- ----------------------- ----------------------- ----------------------- ----------------------
Balance at 1
January
2017 182 12.463 (3.073) (6.725) 2.847
Credit for share
based
payments - - - 21 21
Transactions with
owners - - - 21 21
------------------ ----------------------- ----------------------- ----------------------- ----------------------- ----------------------
Loss for the 6
months
ended 30 June
2017 - - - (848) (848)
Exchange
differences
on translating
foreign
operations - - (180) - (180)
Balance at 30
June
2017 182 12.463 (3.253) (7.552) 1.839
------------------ ----------------------- ----------------------- ----------------------- ----------------------- ----------------------
Balance at 1 July
2017 182 12.463 (3.253) (7.552) 1.839
Credit for share
based
payments - - - 4 4
Transactions with
owners - - - 4 4
------------------ ----------------------- ----------------------- ----------------------- ----------------------- ----------------------
Loss for the 6
months
ended 31
December
2017 - - - (587) (587)
Exchange
differences
on translating
foreign
operations - - (145) - (145)
Total
comprehensive
income for the
period - - (145) (587) (732)
Balance at 31
December
2017 182 12.463 (3.398) (8.136) 1.111
------------------ ----------------------- ----------------------- ----------------------- ----------------------- ----------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PREPARATION
The interim results of Mobile Streams PLC are prepared in accordance with the requirements of IAS 34 Interim Financial Reporting as adopted by the EU and prepared in accordance with the accounting policies set out in the last financial statements for the 12 months ended 30 June 2017.
The interim results, which are not audited, do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006.
The comparative financial information for the twelve months ended 30 June 2017 has been extracted from the statutory accounts for that period. In addition, the financial information for the 6 months ended 31 December 2017 has been extracted from the unaudited Interim results. The full audited accounts of the Group for the 12 months ended 30 June 2017 were prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union and have been delivered to the Registrar of Companies.
The auditor's report on these financial statements was unqualified and did not contain statements under S498 (2) or S498 (3) of the Companies Act 2006.
2. SEGMENT REPORTING
As at 31 December 2017, the Group was organised into four geographical segments: Europe, North America, Latin America, and Asia Pacific. Revenues were from external customers only and generated from three principal business activities: the sale of mobile content through MNO s (Mobile Operator sales), the sale of mobile content over the internet (Mobile Internet sales) and the provision of consulting and technical services (Other Service Fees).
All operations are continuing and all inter-segment transfers are priced and carried out at arm's length.
The segmental results for the 6 months ended
31 December 2017 were as follows:
GBP000's Europe Asia North Latin Group
America America
Mobile operator
sales 1 1 25 - 27
Mobile internet
sales - 329 - 1.471 1.800
Other service
fees 4 - 2 - 6
----------------------- ------- ------ --------- --------- --------
Total revenue 5 330 27 1.471 1.833
Cost of sales (1) (220) (13) (928) (1.162)
----------------------- ------- ------ --------- --------- --------
Gross profit 4 110 14 543 671
Operating expenses (540) (251) (38) (483) (1.312)
----------------------- ------- ------ --------- --------- --------
EBITDA* (536) (141) (24) 60 (641)
----------------------- ------- ------ --------- --------- --------
Depreciation,
amortisation - - - (3) (3)
Share based
compensation (4) - - - (4)
Finance income - - - 80 80
----------------------- ------- ------ --------- --------- --------
Profit/(loss)
before tax (540) (141) (24) 137 (568)
Income tax expense - - - (19) (19)
----------------------- ------- ------ --------- --------- --------
Profit/(loss)
after tax (540) (141) (24) 118 (587)
Segmental assets 578 308 169 1.839 2.894
Segmental liabilities 238 298 103 1.144 1.783
*Calculated as profit before tax, interest,
amortization, depreciation, share compensation
expense and impairment of assets.
The segmental results for the 6 months ended
31 December 2016 were as follows:
GBP000's Europe Asia North Latin Group
America America
Mobile operator
sales 17 - 35 - 52
Mobile internet
sales - 113 2 3.466 3.581
Other service
fees 6 - 1 - 7
----------------------- ------- ------- --------- --------- ----------------------
Total revenue 23 113 38 3.466 3.640
Cost of sales (9) (81) (6) (2.467) (2.563)
----------------------- ------- ------- --------- --------- ----------------------
Gross profit 14 32 32 999 1.077
Operating expenses (297) (147) (73) (1.272) (1.789)
----------------------- ------- ------- --------- --------- ----------------------
EBITDA* (283) (115) (41) (273) (712)
----------------------- ------- ------- --------- --------- ----------------------
Depreciation,
amortisation - - - (14) (14)
Share based
compensation (97) - - - (97)
Finance income - - - 77 77
----------------------- ------- ------- --------- --------- ----------------------
Profit/(loss)
before tax (380) (115) (41) (210) (746)
Income tax expense (84) - - (49) (133)
----------------------- ------- ------- --------- --------- ----------------------
Profit/(loss)
after tax (464) (115) (41) (259) (879)
Segmental assets 1.887 201 151 2.608 4.847
Segmental liabilities 156 56 313 1.475 2.000
*Calculated as profit before tax, interest,
amortization, depreciation, share compensation
expense and impairment of assets.
The segmental results for the year
ended 30 June 2017 were as follows:
GBP000's Europe Asia North Latin Group
Pacific America America
Mobile Operator Services 34 2 48 - 84
Mobile Internet Services - 398 4 5.195 5.597
Other Service fees 10 - 3 1 14
-------------------------------- ------- --------- --------- ---------------------- ---------------------
Total revenue 44 400 55 5.196 5.695
Cost of sales (8) (260) (12) (3.662) (3.942)
-------------------------------- ------- --------- --------- ---------------------- ---------------------
Gross profit / (loss) 36 140 43 1.534 1.753
Operating expenses (596) (442) (120) (2.072) (3.230)
-------------------------------- ------- --------- --------- ---------------------- ---------------------
EBITDA* (560) (302) (77) (538) (1.477)
-------------------------------- ------- --------- --------- ---------------------- ---------------------
Depreciation, amortisation
and impairment - - (19) - (19)
Share based compensation (118) - - - (118)
Revenue/expense intercompany - - - 98 98
Finance income/expense (2) - 1 (1) (2)
-------------------------------- ------- --------- --------- ---------------------- ---------------------
Profit/(loss) before
tax (680) (302) (95) (441) (1.518)
Taxation (84) - - (125) (209)
-------------------------------- ------- --------- --------- ---------------------- ---------------------
Profit/(loss) after
tax (764) (302) (95) (566) (1.727)
Segmental assets 1.370 314 175 2.143 4.002
Segmental liabilities 269 57 297 1.540 2.163
*Calculated as profit before tax, interest, amortization,
depreciation, share compensation expense and impairment
of assets.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
3. EARNINGS PER SHARE
Earnings per share is calculated by dividing the(loss)/profit
attributable to equity holders of the Company
by the weighted average number of ordinary shares
in issue during the period.
Unaudited Unaudited Audited
6 months 6 months 12 months
ended 31 ended 31 ended 30
December December June
2017 2016 2017
Loss for the period (GBP000's) (587) (879) (1306)
----------------------------- --------------------------- -----------------------------
Loss earnings per share
(pence):
Basic (0,641) (2,167) (3,519)
Diluted (0,641) (2,167) (3,519)
Adjusted earnings per
share
Adjusted earnings per share is calculated to reflect
the underlying profitability of the business by
excluding non-cash charges for depreciation, amortisation,
impairments and share compensation charges.
6 months 6 months 12 months
ended 31 ended 31 ended 30
December December June
2017 2016 2017
GBP000's GBP000's GBP000's
Loss for the period (587) (879) (1727)
Add back: share compensation
expense 4 97 118
Add back: impairment - - -
of intangibles and goodwill
Add back: depreciation
and amortisation 3 14 19
Adjusted loss for the
period (578) (768) (1590)
Pence Pence Pence
per share per share per share
Adjusted loss per share (0,633) (1,894) (2,414)
Adjusted diluted loss
per share (0,633) (1,894) (2,414)
Weighted average number
of shares
6 months 6 months 12 months
ended 31 ended 31 ended 30
December December June
2017 2016 2017
Basic 91.593.533 40.507.910 65.910.376
Exercisable share options - - -
----------------------------- --------------------------- -----------------------------
Diluted 91.593.533 40.507.910 65.910.376
Diluted (loss)/earnings per share is calculated adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Company has only one category of ordinary shares.
The adjusted EPS has been calculated to reflect the underlying profitability of the business by excluding non-cash charges for depreciation, amortisation, impairments and share compensation charges.
4. GOING CONCERN
The Group had cash balances of GBP1.46m at 31 December 2017 (30 June 2017: GBP2.26m) and no borrowings. Having reviewed cash flow forecasts and budgets for a year ahead the Directors have a reasonable expectation that the Group has sufficient resources to continue in operational existence for the foreseeable future.
As at 31 December 2017, GBP0.65 (including short-term investments of GBP0.55m) of the Group's cash balance was held in Argentina. The Argentine Government has released the currency restrictions in December 2015. Since then, the Peso has remained relatively stable, although we cannot predict future movements in the currency and the impact on our financial performance.
5. FOREIGN CURRENCY TRANSLATION
(a) Presentational currency
The consolidated financial statements are presented in British pounds: the functional currency of the parent entity is also British pounds.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the date the transaction occurs. Any exchange gains or losses resulting from these transactions and from the translation of monetary assets and liabilities at the balance sheet date are reported in the income statement except when these represent a net investment in a subsidiary when they are charged or credited to equity
.
Foreign currency balances are translated at the balance sheet date using exchange rates prevailing at the period end.
(c) Group companies
The financial results and position of all group entities that have a functional currency different from the presentational currency of the Group are translated into the presentational currency as follows:
i - assets and liabilities for each balance sheet are translated at the closing exchange rate at the date of the balance sheet
ii - income and expenses for each income statement are translated at average exchange rates (unless it is not a reasonable approximation to the exchange rate at the date of transaction)
iii - all resulting exchange differences are recognised as a separate component of equity (translation reserve)
The exchange rates used in respect of Argentinean pesos are the official published exchange rates.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFFAVDIRFIT
(END) Dow Jones Newswires
March 27, 2018 02:00 ET (06:00 GMT)
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