Mobile services and content provider Zamano managed to maintain profits even though there was a slump in revenues.
Revenues fell from 23.7m to 13.3m in the six months to June 2009. Direct to consumer revenues more than halved while business to business revenues fell by around one-quarter. Most of the fall in revenues came in the UK with Ireland down by one-fifth. US revenues continue to grow and Spain made an initial contribution. Margins improved thanks to a change in the mix of revenues and cost cutting so pre-amortisation profits held up relatively well - declining from 1.88m to 1.81m.
Net debt was 5.81m at the end of June 2009. There is potential deferred consideration of 1.37m but this is still under negotiation.
Subscriptions are not as important a source of revenues as they were. Continual launches of new products helps to generate revenues. This means that revenue generation is not as smooth as in the past.
Marketing has changed in recent years. Chief executive John OShea says that print is effectively dead and web and mobile portals are the effective ways of marketing products. Zamano has started supplying applications for the iPhone and these are being sold globally.
The decline in revenues should be coming to an end with further growth to come from the US, Spain and South Africa, where Zamano recently launched its services.
At 18.75p a share, Zamano is valued at £15.2m.
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