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Mobile Streams Revenues Jump as Customer Base Passes 4 Million Mark

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The mobile content retailer, Mobile Streams has reported that its active customer base has now passed the 4 million mark, and that revenues rose by 14 percent during the last six months of 2013.

Although UK registered, the company predominantly operates now in Latin America, and has struggled with currency problems in its main Argentinean market.

Revenues were approximately £27 million, as compared to £23.7 million for 6 months ended 31 December 2012. Revenue growth during the period was 14% in GBP and 28% in Argentine Pesos compared to the same period in the previous year. The difference in revenue growth was caused primarily by the devaluation in the Argentine Peso during the period.

Argentina generated 85% of the revenues during the period (compared to 92% in the prior year period), followed by Mexico at 12% (compared to 3% in the prior year period).

Two years ago, Argentina imposed strict rules for companies with the purpose of greater control over the foreign exchange market. This ruling increased the difficulty of repatriation of funds from Argentina to related companies. The company said that it continues to look at the most effective way of moving cash out of Argentina.

Active Subscribers passed 4 million at the end of December 2013, compared to 2.7m at end of December 2012. The vast majority of these subscribers are located in Argentina, whilst subscribers in Mexico, our second largest market, exceeded 300,000. Subscribers in Colombia fell to 75,000, compared to 92,000 at the end of the prior year period. The contribution from Brazil was immaterial during the period.

Simon Buckingham, CEO of Mobile Streams warned that "due to the recent devaluation of the Argentine Peso subsequent to the end of the reporting period, the Company does not currently expect that it will meet market expectations for full year ending 30th June 2014. Once the currency situation has stabilized, the Company will provide further guidance to the market."

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