Mobile data services provider Zamano said its revenue fell in the first half of 2010, declining about 34 per cent in a “challenging” marketplace.
The company said revenues were €8.75 million in the six months to June 30th, compared with €13.3 million in the first half of 2009. Earnings before interest, tax, depreciation and amortisation were €950,000, compared with €2.3 million a year earlier. However, the company said both figures were in line with expectations.
"It's part of an overall transition of the business away from the traditional messaging-type business more to rich smartphone-type service. It takes time," chief executive John O'Shea said.
"The legacy business has fallen away at an unexpectedly rapid rate and the growth in the new smartphone business has been slower than expected."
Gross margin remained at 32 per cent.
Adjusted earnings per share was down to 0.4 cent, compared with 2.3 cent in the first half of 2009.
During the six months, the company reduced its gross debt over the period by about €6 million, from €11.8 million to €5.7 million, with net debt at €1.4 million.
However, there was strong year on year revenue growth in its US and Spanish markets, and Mr O’Shea said the company was eyeing growth for next year as it achieved stability and identified new opportunities.
Mr O’Shea said a restructuring programme completed in June had cut costs.
"The marketplace has continued to present challenges for the group,” he said. “We are transitioning the business accordingly and have completed a significant restructuring programme during H1. This has removed cost from the business, improved efficiencies and focused our attention on core competencies and markets in which scale has been achieved.”
After seeing its legacy revenue fall considerably in the past few years, Zamano is exploring new avenues. The company is planning to target mobile web users, preferring to avoid the platform clash that is developing between Google, Apple, Blackberry and Symbian.
“We think the mobile web is the future, and avoiding apps,” Mr O’Shea said. “Most feature phones have a browser. We want to work within that environment."
This includes a service for Setanta that will see video clips of goals sent to mobile phones about six minutes after they are scored.
Chairman Mike Watson said the board was conscious of ongoing challenges, and was aware that there are some months of effort ahead before a “more defined and robust picture” of Zamano’s long-term prospects becomes clearer.
