Mobile Content Firm Warns of Lower Profits

The recently floated UK based mobile content firm, Monstermob has issued a profits warning after it cited investment write offs and increased competition for falling sales. The company said that competition has been fierce in the first few months of the financial year, with many competitors pursuing aggressive, price led advertising campaigns. In response to this, Monstermob has focused its advertising spend on building sustainable subscription revenues based on transparent price offerings. This will have a short term impact on margins.

Over the last 4 months, the Company has invested heavily in a number of new services including SEEMEE, a proprietary community chat service, Go! a unique mobile entertainment portal and 'Jet Set Club', a weekly quiz based competition service. However the company has decided to write off the cost of the development, leading to a

Posted to the site on 25th May 2004