LONDON (Alliance News) - Mobile Streams PLC on Monday said it expects that group revenue for the first half will be about half what was recorded in the equivalent period the prior year.
Mobile Streams, which retails mobile content such as apps, games, ebooks, music and videos, said that trading in its Argentine core market has continued to be challenging, prompting the revenue warning.
The company said it is too early to tell whether the problems within the Argentine core market will continue to be a drag in the second half. It had previously been hit by the fall in the value of the Argentinian peso, and during 2012 the company's ability to transfer cash out of the country suffered due to changes to regulations around the international transfer of funds.
Revenue amounted to GBP18.5 million in the six months to December 31, 2014, down from GBP27.0 million in the corresponding half the prior year.
"Notwithstanding this reduction, the board is continuing to implement cost reduction measures with a view to maintaining the group's EBITDA [earnings before interest, tax, depreciation and amortisation] for the current financial year at around breakeven," the company added.
Mobile Streams said it is beginning to see "some progress" with more than 40% of its overall Argentine subscriber base now paying for premium subscriptions which carry around double the margin as compared with its traditional standard subscription products.
"Around 90% of all new subscription acquisitions in Argentina are now premium subscribers and the board anticipates that this premium percentage will increase," Mobile Streams said.
Shares in Mobile Streams were down 16% at 14.31 pence on Monday afternoon.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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