Monstermob Drops into Massive Loss
Troubled mobile content provider, Monstermob which was recently effectively taken over by LaNetro Zed has reported a pretax loss of £105 (US$209) million compared with a restated profit of £8.8 (US$17.5) million in the year-ago period. The company cited problems in China and the UK for the losses.
Monstermob's operations in the Philippines, Malaysia, Thailand, Singapore, Bangladesh, Indonesia, and Vietnam reported an EBITDA of £6.4 million with net revenues of £12.7 million.
2006 saw two further acquisitions in China, M-Dream and W-Infinity. The introduction of additional local regulations in July 2006 led to a significant drop in revenues. Prior to these changes China was Monstermob's largest territory by revenue and profit. Average gross revenues per month in China fell by 62 per cent to £1.3m in H2 of 2006 compared to an average of £3.3m in H1 of 2006. The EBITDA contribution fell by 100 per cent in H2 of 2006 to a breakeven position (H1 EBITDA £5.9m). These falls are larger than those experienced by other companies in the market.
The company has now put its China operations under review.
The UK business has continued to find market conditions difficult. The business recorded a negative EBITDA of £904k during 2006. At present the company says that it is reviewing operations in the UK in order to determine the best future for the business.
Interestingly, the results have a small note about a possible liability for £2.5 (US$4.9) million due to actions from an unnamed 3rd party."
Posted to the site on 25th May 2007