Mobile Streams shares tumble as revenue drops 58%

Content distributor Mobile Streams saw its share price crash on Monday morning after the group warned investors of a massive drop in its annual revenues.

While Mobile Streams cut its underlying loss 16.5% to £1m, shares were in free fall in early trading after the group revealed that unaudited revenues had fallen 58% to £1.3m.

In terms of the group's operational performance, Mobile Streams said trading in India had been impacted by the consolidation of mobile telecoms operators within the region, while revenues in Argentina "declined significantly" during the fourth quarter, primarily due to the devaluation of the Argentine Peso.

As a result of the poor performance, The AIM-listed group undertook a "comprehensive cost-cutting plan" in response to the marked reduction in revenue, but around £400,000 expenses related to the rationalisation itself had "a significant impact" on Mobile Streams' cash balances.

Mobile Streams said its board was in the process of considering a number of financing options to ensure that it had "sufficient working capital".

Chief executive Simon Buckingham said: "Despite the falling revenue and the cost reduction actions implemented, the company continues to focus on potential business development opportunities and financing initiatives in order to ensure that the company has sufficient working capital to support its commercial activities for the foreseeable future"

As of 0930 BST, Mobile Streams shares had tumbled 43.11% to 0.13p.