Zamano revenues fall €10.4m during H1 2009


23 Sep 2009

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Dublin and London Stock Exchange-listed mobile software firm Zamano today reported a €10.4m fall in revenues to €13.3m for the first six months of the year due to declines in its traditional markets.

The company’s EBITDA fell by 7pc to €2.3m, which it said was in line with market expectations, with adjusted EPS for the first six months of the year remaining flat at 2.3 cent.

Revenue declined in the group’s UK and Irish markets due to a planned shift to lower-volume, higher-margin revenue and the impact of external factors, such as the declining effectiveness of print advertising and stricter regulatory requirements, and low levels of consumer confidence being more severe than expected.

However, the company’s share of the US market grew during the first half of 2009, with revenue increasing by 44pc to €1.9m.

Cost reduction was also a focus during the period, Zamano said, reporting that administrative expenses were reduced by 47pc to €2.1m.

Zamano said its cash generation continued to be strong during the period, with €2.1m of positive cash-flow from operating activities in the first six months of the year.  

At 30 June, Zamano had a net debt of €5.8m, having paid down €1.2m of debt during the first six months of 2009. 

The company said there was a continued shift in its routes to market during the first six months of the year, with advertising spend on print and television substantially reduced, while online and mobile portal advertising spend increased.

The company also said the type of content it delivers has changed dramatically over the past 12 months, with mobile ringtones and wallpapers being replaced by interactive mobile applications, games, competitions and corporate solutions.

Zamano noted that as the cost of accessing mobile data continues to decline, its customer levels are expected to increase.

“Despite the short-term challenges, the board has confidence in the medium and long-term prospects of the industry, and is excited about the high-growth areas and the opportunities that they present,” said Zamano CEO John O’Shea.

“The broader industry is growing, and we look forward to refining our strategy and building on our fundamental strengths to capitalise on the expected significant growth in the industry.”

Article courtesy of businessandleadership.com

Photo: Mobile software company Zamano has said the type of content it delivers has changed over the past year.

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