Zamano sees profits dwindle

Mobile marketing company Zamano saw both its profits and revenues dwindle in the opening six months of the year, on the back of changes to its business mix and a challenging Irish environment.

The Dublin-headquartered company reported profits of €2.38m, down from €2.53m in the same period last year while revenue decreased by €300,000 to €8.72m.

Zamano’s gross margin declined slightly from 28% to 27.3%.

The company — which operates in Ireland, the UK, Australia and Eastern Europe — attributed the marginal fall in gross margin to expanding its third party sales in the UK business-to-business area which carries a lower margin.

ComReg’s introduction of a new code of practice in mid-2012 also adversely affected its Irish business, according to Zamano chief executive Ross Conlon.

“Irish sales for the period were €1.75m compared to €2.18m during H1 2013. Gross profit for the period ended 30 June, 2014, was €0.51, down from €0.66m in the first half of 2013. This trend in the Irish business, which was previously reported, resulted from the introduction by ComReg of a new code of practice in mid 2012.

“The extent of the decline in sales was arrested during the period... although conditions remain challenging.”

The mobile and internet technology company’s Ebitda (earnings before interest, tax, depreciation and amorisation) also declined in the first half of the year, falling to €1.22m from €1.42m but still 2.5% ahead of the second half of last year.

Similarly, its sales, while down on the levels reported in the first half of 2013, were 24% ahead of those in the latter part of last year.

The company also highlighted what it described as its “stellar performance” in Australia following the successful roll-out of a strategic marketing campaign with new mobile advertising partners.

Despite the pick-up in business in the Australian market, its overall performance in “other markets” declined — pointing to a weaker performance in eastern Europe.

The company indicated that it would continue to invest in product development and look to grow the business through appropriate acquisitions, investment and joint venture opportunities.