Mobile Streams shares tumble as FY profits decrease 'substantially'

Data intelligence group Mobile Streams revealed on Wednesday that gross profits had "decreased substantially" in the year ended 30 June as gross profit margins nosedived.

Gross profits tumbled to £12,000, down from £450,000 a year ago, while gross profit margins decreased from 44% to just 1%, reflecting the inclusion of "significant upfront royalties" on NFT contract revenues. On an underlying earnings level, trading EBITDA came to a loss of £2.8m, widened from 2022's loss of £1.4m.

However, Mobile Streams assured that the royalties were for multi-year contracts and that margins were expected to "increase significantly" in the coming years.

Group revenues came to £1.8m, up from £1.0m a year earlier, whilst legacy revenues fell to £105,000 from £223,000 and revenues from new sources increased to £1.71m from £799,000.

The London-listed group said the increase in group revenues was due to the marketing of new products and services, with the "significant increase" in marketing spend from £254,000 to £877,000 reallocated throughout the year to reflect "the most promising" products and services.

As of 0855 GMT, Mobile Streams had sunk 9.33% to 0.061p.

Reporting by Iain Gilbert at Sharecast.com