Mobile Streams pleased with progress as it focuses on data business
Mobile content and data intelligence company Mobile Streams updated the market on its trading for the year ended 30 June on Thursday, describing it as one of “significant change”.
The AIM-traded firm said its unaudited accounts showed revenues from the legacy mobile content business as declining from £1.34m in 2019 to around £0.47m, with net revenues after payments to carriers declining from £0.5m to £0.11m.
Despite those expected results, largely due to a lack of investment in previous years, the firm said it had retained “long-established” relationships with a number of carriers, and was reviewing whether to make additional investment in the content business.
Mobile Streams said it made significant cuts to its cost base, and thus, despite the significant drop in both revenues and contribution from the content business, it expected to report an overall EBITDA loss for the existing business after all group costs other than those of the data business, similar to the £0.67m reported for 2019.
Looking at its data business, the company launched its 'Streams' platform and services in April, with the first commercial agreement signed with the National Emergencies Trust (NET) in the same month, and two further clients - product and brand development agency Orckid and the education division of The Economist Group - signed in June.
Given the timing of the launch, Streams revenues in the year to 30 June only included those generated by the NET contract in that month, and represented about 2% of its £0.48m 2020 revenue.
Encouragingly, the board said that in June, while content business revenue remained stable, revenues from the data business represented 20% of gross group revenue.
Revenue from the data business was expected to grow “significantly” in the current year.
In July, the company launched the Streams software-as-a-service (SaaS) insight platform to enable customers to sign up for a customer-driven digital marketing tool, providing many of the features available under its existing Streams platform.
Mobile Streams said it had signed up more than 30 initial customers for the SaaS platform, which would typically receive their first month free, with the board hoping that many would then convert to monthly subscriptions.
The company said it currently held cash of £1.26m which, based on the current business plan, was expected to be sufficient to last beyond the end of the current financial year.
“Despite the disruption caused by the effects of the Covid-19 pandemic, we have continued to support the existing mobile content business whilst engaging with both existing and potential new clients to expand the Company's Streams data insight and intelligence platform. The recently announced launch of the SaaS self-service platform is expected to generate additional revenues before the end of 2020,” said chairman Nigel Burton.
“The board and senior managers are all being remunerated in shares which will not be issued until 2021, conserving cash and providing strong alignment with shareholders.
“Our existing cash balances of £1.26m provide sufficient funds to cover all expected costs beyond the end of the current financial year as well as to support the expansion of the product, marketing and sales pipeline for both the content and data businesses.”
Mobile Streams said it would release its full report for the year ended 30 June in October.
At 1608 BST, shares in Mobile Streams were down 7.77% at 0.24p.