Shares plunge more than a third, wiping millions off capBritain’s Mobile Streams, which describes itself as world’s biggest independent content retailer, has issued a profit warning following the recent devaluation of the Argentine Peso. The news sent the stock plunging in early trading today [29th January 2014], sending them down a massive 34 per cent to just 41 pence. The company, whose vast majority of subscribers are based in the South American country, was hit two years ago when the Argentinian government imposed strict rules on foreign exchange movements, making it difficult for firms like Mobile Streams to get their money out. Unable to repatriate profits, the company’s share price has plunged in the past year.
Now, in a trading statement issued early today [January 29th 204], Mobile Stream’s CEO, Simon Buckingham, admitted that the company did not expect to meet market expectations for the full year ending in June 2014, but would issue an update once the Argentinian currency had stabilised.
Despite the concerns, Mobile Streams was upbeat generally saying that for the six months ending in December 2013 revenues were approximately £27 million compared to £23.7 million for the previous period in 2012.
It said that more than 95 per cent of earnings came from its mobile Internet segment with the sales of content directly to consumers.
Argentina generated 85 per cent of revenues during the period, compared to 92 per cent in the prior year period, as Mobile Streams strives to boost its activities outside of Argentina.
For example, into other countries such as Mexico, which now accounts for 12 per cent of revenues – four times more than in 2012.
Meanwhile Buckingham himself has done little to bolster faith in the company, shedding 630,000 shares in October last year  as the stock plunged nearly 11 per cent on London’s Aim market.