Friday 19 January 2018 ShareProphets: The one stop source for breaking news, expert analysis, and podcasts on fast-moving AIM and LSE listed shares

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 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.

Filed under:

Never miss a story.

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.

More on MOS


Comments are turned off for this article.

Site by Everywhen