Mobile subscriber retention services provider CDialogues says that there was a sharp fall in revenues in the second half but the decline appears to be in line with previous warnings.
During September house broker Allenby was still forecasting 2015 revenues of €10.5m and EBITDA of €3.1m but they were subsequently downgraded. Revenues are expected to fall from €8.8m to €9.9m in 2015. EBITDA will fall more sharply from €2.9m to €2m. Interim EBITDA was €1.62m so the second half profit was much lower. This suggests that earnings per share could approach 20p as currently forecast.
Subscription revenues were more than 75% of total revenues a small decline in percentage terms on the first half outcome.
On the bright side the business is still cash generative. There was €3.6m in the bank at the end of 2015, slightly down on the June cash level. There was an interim dividend of 1.25p a share paid in the second half at a cost of nearly €100,000. A 2.25p a share final dividend is forecast but there is no mention of a final dividend in the trading statement so the dividend may not be that generous.
The share price recovered 10.5p to 74.5p but it is still less than one-quarter of the level it was six months ago. The shares are trading on four times estimated earnings for 2015. The trouble is that the 2016 profit could be much lower and there is no published forecast.
Project delays have hit trading levels. Just before Christmas, CDialogues revealed its first contract in Latin America and there are more projects set to be launched in the next few months.
The 2015 figures will be published on 11 April.
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