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Synchronica EBITDA loss down 65% as revenue rises

By BFN News | 08:47 AM | Tuesday 15 March, 2011


Mobile messaging solutions provider Synchronica plc narrowed its EBITDA loss by 65% in the year to December on the back of an 85% increase in revenue. EBITDA loss excluding exceptionals was $0.8m against $2.9m in 2009. Revenue totalled $10.9m, previously $5.9m. Reported pre-tax loss was $7.3m, up from $5.2m. During the year the group completed the acquisition of iseemedia Inc. and the Instant Messaging business of Colibria AS. It finished with 83 mobile operators and eight device manufacturers in its customer base, compared with 21 operators and one manufacturer at the end of 2009. The company said 1.3bn users were in its addressable market at the end of 2010, a more than fourfold increase from 300m. In the fourth quarter, there was a 57% increase in revenue to US $5.2m and EBITDA doubled to $2.0m. Four operator contracts were signed for a total of $3.1m, along with an expansion order worth $0.98m. A device certification programme had been initiated with a major Latin American operator, ensuring compatibility with Synchronica's instant messaging service. Post-period, the company announced an agreement to acquire the Instant Messaging business of Neustar NGM Services and a major upgrade of its flagship product Mobile Gateway. CEO Carsten Brinkschulte said, '2010 was a very important and successful year for us. We accelerated customer acquisition with both mobile operators and device manufacturers, which in turn drove record growth in our addressable market, expanded our global footprint and established our position as the leader in the mobile messaging market for emerging economies. 'At the same time, we added new technology to our flagship Mobile Gateway platform to increase functionality. 'As we move forward in 2011, these accomplishments will enable us to further build our customer base, focus on increasing usage across the networks and expand our target to the developed markets.' Synchronica began trading on the TSX Venture Exchange in September. It said the North American listing provided 'a strategic route into an investment community that is very tech-savvy and ready to back growing companies like Synchronica'. The strong end to the year had continued into the first quarter. The Neustar acquisition and expected organic growth from emerging markets gave the board confidence of its ability to meet market expectations. At 8:46am: (LON:SYNC) share price was -0.5p at 24.25p Story provided by StockMarketWire.com

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