Mobile apps firm Zamano reported revenues of €15.8m, a decline of 45pc and 55pc in Ireland and the UK, respectively.
The company reported revenue growth of 9pc and 149pc achieved in the US and Spain.
“(The year) 2010 was a year of two contrasting halves,” chairman Mike Watson explained. “In H2, the business was stable, following on from serious declines in H1.
“Stability has been maintained into 2011, and a further reduction in the cost base has restored moderate levels of profitability in the core mobile content business. In recognition of the changes in the market sector in which Zamano operates, the company has reduced its goodwill by €12.7m, resulting in a pre-tax loss of €13.3m. (The year) 2011 will be another challenging year, but the board remains confident that stability has now been achieved and the capacity to grow again will follow,” Watson explained.
A turbulent year
Gross margin fell 5pc to 29pc, due to extra content costs and higher marketing costs associated with new market channels.
EBITDA reduced from €4.3m to €0.9m, due to reduced contribution levels of sales.
A decision was made to reduce goodwill by €12.7m in line with future market potential resulted in a pretax loss of €13.28m.
The company completed banking re-negotiation to re-align covenants with trading and to allow investment.
“The company’s expectation is that the declines in the business have now come to an end and that we have a stable business which can achieve modest profits,” Zamano’s CEO John O’Shea said.
“To deliver growth, the company is focusing on new business opportunities which re-use existing Zamano competencies,” O’Shea said.