Mobile phone services company Zamano has reported that its revenue declined by 39% in 2009 to €25.1m, mainly because of an 80% decline in the UK market.
In announcing its full year results for 2009, however, Zamano pointed out that the Group had returned to profitability, with a profit after tax of €1.1m. It had a bottom line loss of €3.8m in 2008, when it had higher interest costs and an impairment charge to figure in.
In 2009, gross margins improved to 34%.
EBITDA of €4.3m was in line with market expectations.
The decline in revenue is mainly explained by a transition to higher margin, lower volume business, CEO John O'Shea said.
O'Shea said that Zamano now plans to concentrate on smart phones, as it believes they will constitute the majority of handsets in core markets by 2012.
To provide capital so it can invest in new technology in the changing market, Zamano completed a €2.5m fundraising with the Ulster Bank Diageo Venture Fund in December 2009. This fundraising has strengthened Zamano's balance sheet.
After an earlier slump of over 17%, Zamano shares regained ground and closed at 17 cent - unchanged from yesterday.
