Trading Update

RNS Number : 6910K

Mobile Streams plc

20 July 2011

 



20^th July 2011

Mobile Streams plc

("Mobile Streams" the "Group")

Trading Update

Mobile Streams PLC, the leader in premium apps and mobile content monetization, (AIM: MOS) is pleased to update its shareholders on its financial and business performance for the 18 months ended 30 June 2011.

Financial highlights

·      Revenues of c£15.5m for the 18 months ended 30 June 2011 (12 months ended 31 December 2009: £7.1m)

·      Revenues of c£5.9m in the 6 months ended 30 June 2011; 37% growth compared to 6 months ended 30 June 2010 of £4.3m, included £0.2m from Zoombak

·      Mobile Internet revenues of c£7.5m for the 18 months ended 30 June 2011 (12 months ended 31 December 2009: £0.8m)

·      Mobile Internet revenues more than doubled in the 6 months ended 30 June 2011 to c£3.4m compared to the 6 months ended 30 June 2010 of £1.6m

·      Cash of £1.1m as at 30 June 2011 from £1.3m as at 31 December 2010, with no debt

Operational Highlights

·      Launch of Appitalism.com universal social app store in September 2010, now live in 51 countries with an unsurpassed content catalogue of more than 20 million unique content titles

·      Mobile Internet subscriber base grew by more than 500% to over 750,000 active subscribers. Active subscribers are defined as customers who have paid to use one of the Company's mobile internet services in the past two month period. Much of this growth has been fueled by smartphone adoption as well as the availability of a wide choice payment options including direct operator billing on Appitalism.com

·      A total of 17 Business To Business (B2B) customer contracts have been fully executed for the distribution and provision of the Company's apps, games and eBooks content and services, with a pipeline of additional contracts in the process of being completed by 31 December 2011. These focused, potentially material deals include new partnerships with several of the world's largest cellphone carrier groups and telecoms infrastructure suppliers including the previously announced partnerships with Huawei, Qualcomm and Infosys

Commenting, Simon Buckingham, CEO of Mobile Streams and Chief Appitalist said:

 "The move into the apps space with Appitalism to address the burgeoning smartphone market gave Mobile Streams renewed momentum and relevance during the past financial year, both to consumers and to our business customers such as carriers.

As a result of this overall activity and momentum in apps, Appitalism is not expected to require further material investment in the new financial year. The Company does plan to increase marketing investments to build the Appitalism brand and user activity in the new financial year, however these marketing programs are predominantly planned on performance based advertising networks whereby Mobile Streams only pays for the advertising it has received in the event that an actual revenue generating event such as a new subscriber signup occurs.

In the 18 month period reported the Company has traded profitably at the EBITDA level (EBITDA being calculated as profit before tax, depreciation and amortization). 

With the Appitalism platform largely developed, and with many of the new material contracts at an early stage of deployment and revenue generation, the Board is confident that the Company has sufficient financial resources in place to fully fund its overall business plan and growth strategy.

As a global leader in the monetization of premium apps, games, eBooks and mobile content, we are excited about the continuing global growth opportunities for Mobile Streams in the new financial year as smartphones and other mobile devices continue to become ever more popular."

Enquires:

Mobile Streams Simon Buckingham, Chief Executive Officer Gabriel Margent, Chief Financial Officer	[phone]
Nominated Adviser Grant Thornton UK LLP Philip Secrett	[phone]
Broker Singer Capital Markets Limited Jeff Keating	[phone]

 

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