Mobile Streams pleased with performance even as revenue halves

Mobile Streams updated its shareholders on its progress for the six months ended 31 December on Monday, highlighting the fact that it secured direct agreements with all four mobile telecom operators in India during the period.

The AIM-traded firm said that despite “challenging” economic conditions, Argentina trading was also stable.

Unaudited revenues were around £0.92m, down from £1.83m year-on-year on a constant currency basis, taking into account the devaluation of the Argentinian peso.

Unaudited revenue was £1.41m, with all revenue from continuing operations.

Cash and cash equivalents stood at £0.54m as at 31 December, down from £1.47m a year earlier, with no debt.

“We are pleased that the team secured direct agreements with all of the major telecom operators in India,” said Mobile Streams chief executive officer Simon Buckingham.

“This enabled us to achieve our highest revenue quarter in the region since launch in 2015.”

Buckingham said increased and more stringent regulations imposed by the telecom operators had led to reduced investment in support for value-added services in the latter part of the period, which impacted Mobile Stream's revenue targets.

“Looking ahead to 2019, despite ongoing concerns over the economy in Argentina, we expect trading to remain stable; in India, despite some uncertainties following the recent telecom operator mergers and their support for value added services, we expect increased contribution from our most recent [billing] partner.”