Web firm expects to break even

DUBLIN-based web and mobile services provider, Zamano, expects to break even this year and return to profitability in 2012, following a positive performance in the first half of 2011.

Zamano yesterday reported a €530,000 pre-tax loss for the six months to the end of June, significantly down on a €6.32m loss for the corresponding period last year.

The company’s first-half operating loss amounted to €393,000, compared to just over €6m in the first half of 2010. Revenue fell from €8.75m to €6.24m.

Zamano’s chief executive, John O’Shea, said that 2011 as a whole should see the company breaking even following a €13.3m pre-tax loss in 2010. He said that the business would push on for further growth in 2012.

“Having completed a restructuring and repositioning of the group earlier in the year, we’re pleased to have seen modest growth in the business in the third quarter of 2011, compared to the second quarter. We now intend to build upon this achievement, taking advantage of the technology platform and competitive advantages we possess in the mobile marketing space,” he added.

Zamano still operates in Ireland, Britain, the US and Spain and is hopeful of re-entering the Australian and South African marketplaces — where it used to have a presence — in the medium-term. Initially, it plans to invest in more new products and new routes to market.

However, that spend will not cover its Newsworthie division. Zamano is currently split into three divisions — mobile phone content and interactive services provider, Everneo, messaging services provider Zamano Solutions Ltd (ZSL) and Newsworthie, which monetises online content for newspapers.

Said Mr O’Shea: “As our investment capacity is limited, we intend focusing it entirely on opportunities related to our mobile expertise, and have suspended further investment in Newsworthie.”

Zamano’s chairman, Mike Watson said that many new challenges remain, including securing the long-term financing of the group. “But our confidence in the group’s performance has improved considerably,” he added.