zamano PLC (AIM:ZMNO, IEX:ZAZ), a leading provider of interactive applications and services to mobile devices, today announces its final audited results for the 12 months ended 31 December 2009
Mike Watson, Chairman of zamano, commented: “The Board is pleased with the Group’s progress during 2009. In a difficult environment we successfully managed cash reserves, and despite a decline in revenue the Group increased profits. The mobile market is going through a period of rapid transition, which offers the Group tremendous opportunities, as well as presenting challenges. In response, the Group has aligned its strategy to this transition and is investing in the areas which it believes will allow it to take advantage of the emerging opportunities. In December 2009 we raised €2.5 million to support this investment and strengthen the balance sheet.”
John O’Shea, CEO of zamano, commented: “Revenue declined by 39% in 2009 primarily due to the transition to higher margin, lower volume revenue and the shift away from advertising services on print and TV to advertising on mobile devices. The Group delivered EBITDA of €4.3 million, supported by an improvement in gross margin and a reduction in operating costs. Furthermore, the Group had excellent cash generation, which combined with a successful fundraising, drove net debt down 69% to €2.2 million. The Group has entered 2010 with a stronger balance sheet and is responding to the dramatic transition in the mobile market by investing in its strategy focused on New Generation Mobile.”
Financial Highlights:
- Revenue of €25.1 million (2008: €41.4 million). The UK market drove 80% of the decline with the balance in Ireland and Australia. This was partly offset by organic revenue growth in the US, Spain and South Africa.
- Gross margins improved to 34% (2008: 28%). This was a result of the focus on performance metrics and the increased effectiveness of advertising on mobile devices as a route to market.
- EBITDA of €4.3 million (2008: €5.0 million), was in line with market expectations.
- Adjusted diluted EPS 4.4 cents (2008: 4.6 cents).
- Profit after tax improved to €1.1 million (2008: loss €3.8 million) due to lower interest costs and no impairment charge in 2009.
- €4.6 million cash generated from operations.
- Net debt reduced by 69% to €2.2 million (2008: €7.2 million).
- Completed €2.5 million fundraising to allow Group to invest in growth initiatives and strengthen the balance sheet.
To see the full report please go to the investors page on the website.