Portfolio

Mobile Streams' shares tumble on FY profit warning

By Andrew Schonberg

Date: Wednesday 15 Mar 2017

Mobile Streams' shares tumble on FY profit warning

(ShareCast News) - Shares in Mobile Streams are down more than 10% after it warned challenges in its Argentina operations will see the company's full-year revenue and EBITDA materially below market expectations.
It said trading in Argentina continued challenging as a result of general market conditions and regulation there for mobile-content subscriptions.

Mobile Streams said a local billing partner had increased the revenue share payment to the company for new subscriptions.

"Unfortunately, this positive news is offset somewhat by a second billing partner deciding to discontinue its mobile billing subscription services," said Mobile Streams.

"The net result of these changes is that the Company expects revenue and EBITDA for the current financial year to be materially lower than market expectations."

However, it said Mobile Streams India Private Ltd had exceeded the important milestone of reaching 175,000 active subscribers to its MobileGaming.com games subscription service.

"This shows strong growth of 34% in a little over 6 weeks since the Company's last trading update in January 2017."

At 10:28 GMT, shares in AIM-quoted Mobile were down 10.71% to 3.12p each.

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