Zamano first-half revenue falls

IRISH mobile telephony applications company Zamano has expressed confidence in its long-term prospects, but has said that financial performance for the second half of this year will be flat.

“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’s chief executive, John O’Shea. His views came on the back of the company — which provides various technologies used for developing feature content (such as ringtones and games) on mobile phones — reporting a 44% decline in first half revenues to €13.3 million.

Earnings per share for the first half of the year remained at 2.3c — the level it was at the halfway point last year — but earnings before interest, tax, depreciation and amortisation (EBITDA) fell slightly from €2.5m to €2.3m.

However, the company did manage to reduce its debt by €1.4m — during the period — to €5.8m and saw its overseas operations in the US, Spain and South Africa begin to show positive results.

“We have more than 1,000 customers in South Africa now, so that operation has passed its test in terms of making sense for us to ramp it up,” Mr O’Shea added.

He also said management is making progress with its previously announced plans to manage cash more prudently and keep costs under control.

As much as 85% of the revenue fall came in the British market through a poor return from the company’s business-to-consumer advertising and the ending of certain business-to-business contracts.

“Revenue declined in the period due to the planned shift to lower volume, higher margin revenue as well as the impact of regulatory change and a weak consumer environment. The group has identified some areas for future revenue growth, which amongst other initiatives will include smart-phone applications,” Mr O’Shea said. Zamano’s share price was unmoved at 23c, yesterday.