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Mobile Streams – emphasises “delighted” with India growth… but overall it’s a “materially lower” profit warning!

By Steve Moore | Wednesday 15 March 2017


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


Trading Statement” announcement from mobile games company Mobile Streams (MOS) sees the shares currently more than 10% lower, heading towards 3p. Uh oh…

Opening with India, the announcement notes recent strong growth in subscribers to the company's MobileGaming.com games subscription service, exceeding the important milestone of reaching 175,000. It adds most of the growth to date has been driven via direct billing connections with two of the three largest local mobile phone operators and that it “is working to add additional direct billing connections for the one remaining local top three network operator as well as to two additional local Indian mobile network operators”. Also announced is that its browser based games service to compliment its app download service has now been launched in India.

Er, Ok. Then onto Argentina... as announced in January, “challenging” general market conditions and regulation in the local market for mobile content subscriptions but “the company has recently received notification from a local billing partner that it has increased the revenue share payment to the company for new subscriptions”. Sounds positive.

It is then added that this is “unfortunately… offset somewhat by a second billing partner deciding to discontinue its mobile billing subscription services”.

“Offset somewhat” - so still overall positive then?

Er… “the net result of these changes is that the company expects revenue and EBITDA for the current financial year to be materially lower than market expectations”!

CEO Simon Buckingham is though “of course delighted in the growth that we are seeing in India… The news from Argentina is disappointing but our Indian business is establishing itself and gaining good momentum”.

Hmmm. You’ve just delivered a “materially lower” profit warning though Simon! With this and, ahead of an end-of-the-month scheduled half-year results announcement, this remains on the bargepole list.


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