Mobile apps and games seller Mobile Streams ( LON:MOS) is recovering well from the nasty shock of the Argentinian peso devaluation in January.
The company lost money at the EBITDA (underlying earnings) level in January, which has not happened before in the company’s history, but returned to profitability in February and March.
Unfortunately, the effect of the devaluation in January was so severe it meant the company registered a small loss for what is the third quarter of the company’s financial year.
“The reduction in profits during the period was caused by a combination of operational and non-operational factors. One factor was adverse foreign exchange currency movements, in particular the weakening of the Argentine Peso against GBP. Additionally, the company's marketing expenses grew more quickly than revenues,” revealed Simon Buckingham, the company’s chief executive officer.
In sterling terms, revenue in the first three months of 2014 fell to £11mln from £14.5mln in the corresponding period of last year, but was up 12% in peso terms.
Mobile Internet revenues of £10.5mln, compared to £13.5mln a year earlier.
The number of active mobile Internet subscribers showed a healthy gain, rising from 3.1mln at the end of March 2013 to 4.2mln at the end of March this year.
At the end of the quarter the company had cash of £2.85mln and no debt. Around £600,000 of this cash was held in Argentina; the company has been engaged in a policy of repatriating its cash into a portfolio of more stable currencies.
Shares in the company were certainly mobile after the release of the trading update, streaming higher to 18.69 (+7.6%). |
