Mobile Streams shares tumble as FY profits decrease 'substantially'

Gross profits tumbled to £12,000, down from £450,000 a year ago, while gross profit margins decreased from 44% to just 1%, reflecting the inclusion of "significant upfront royalties" on NFT contract revenues. On an underlying earnings level, trading EBITDA came to a loss of £2.8m, widened from 2022's loss of £1.4m.

However, Mobile Streams assured that the royalties were for multi-year contracts and that margins were expected to "increase significantly" in the coming years.

Group revenues came to £1.8m, up from £1.0m a year earlier, whilst legacy revenues fell to £105,000 from £223,000 and revenues from new sources increased to £1.71m from £799,000.

The London-listed group said the increase in group revenues was due to the marketing of new products and services, with the "significant increase" in marketing spend from £254,000 to £877,000 reallocated throughout the year to reflect "the most promising" products and services.

As of 0855 GMT, Mobile Streams had sunk 9.33% to 0.061p.

Reporting by Iain Gilbert at Sharecast.com