Mobile content and services provider Mobile Streams has been hit by the devaluation of the Argentine Peso and its share price has slumped by nearly two-fifths to 39.75p.
Mobile Streams will not hit its forecasts for the year to June 2014 because of the devaluation. The company is trying to protect itself from the decline in the Argentine Peso by putting in place accounts so that it can buy US dollar funds and entering into non-deliverable forward futures contracts. It is also considering buying FX futures.
The companyís mobile internet active subscriber base increased by around 50% to more than 4 million.
In the six months to December 2013, revenues improved from £23.7m to £27m - 85% in Argentina. In Argentine Peso the growth was 28%. EBITDA declined from the corresponding periodís figure of £1.9m.
There was £4.6m in the bank at the end of 2013 but this fell to £4.1m at 24 January because of currency movements. There is £1.3m held outside of Argentina but it is difficult to move the rest of the cash out of Argentina.
Mobile Streams is valued at £14.7m.
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