Zamano Refocuses As Revenues Fall

Mobile Apps Provider Changes Strategy To Align With A Market  In Rapid Transition

Zamano, a Dublin-based provider of interactive applications and services for mobile devices, has announced its 2009 results, which show that the group increased its profits last year despite a 39% decline in revenues.

Zamano Chairman Mike Watson commented: "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.

"The Board is pleased with the Group's progress during 2009. In a difficult environment we successfully managed cash reserves, and the group increased profits despite a decline in revenue. In December 2009 we raised €2.5 million to support this investment and strengthen the balance sheet," said Watson.

Zamano CEO John O'Shea (pictured) 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.

O Shea continued: " 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.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."

Financial Highlights of 2009

● Zamano raised €2.5 million in December, allowing the group to invest in growth initiatives and strengthen its balance sheet.   Its Net debt was  reduced by 69% to €2.2 million (2008: €7.2 million).

● Profit after tax improved to €1.1 million, from a  loss  of €3.8 million in 2008, due to lower interest costs and no impairment charge in 2009.

• Revenues were €25.1 million, down from  €41.4 million in 2008. The UK market drove 80% of the decline with other falls in Ireland and Australia. Declines were partly offset by organic revenue growth in the US, Spain and South Africa.

● Gross margins improved to 34% from 28%in 2008. 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).

● €4.6 million cash generated from operations.

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