CDialogues plc
("CDialogues", the "Company" or the "Group")
Trading Update
CDialogues plc (AIM: CDOG), the provider of mobile
marketing solutions to Mobile Network Operators (MNOs), provides a
further trading update for the year ending 31 December 2015.
Third quarter revenues were lower in comparison with
the first two quarters, despite expected seasonality, due to weaker
performance of certain projects in September. Moreover,
monthly revenues achieved in October and November (to date) have
been broadly unchanged relative to those experienced during
September. As such the current revenue levels are likely
to continue until the close of the year. This has had a
consequential effect on EBITDA.
Additionally, delays in the Company's new business
pipeline have led to certain project launches originally
anticipated to take place in the fourth quarter of 2015 now being
predicted to take place in 2016. Certain pipeline related expenses
have already been incurred, which will have a negative effect on
fourth quarter EBITDA.
As a consequence of the above, the Board now believes
that revenue for the year ending 31 December 2015 will be below
current market expectations, with EBITDA for 2015 being materially
below current market expectations.
As part of its normal budgeting process, the Board is
reviewing its internal forecasts for the year ending 31 December
2016. Whilst this budgeting process has not yet been
finalised, it is likely that these forecasts will be lower than
current market expectations.
The Group maintains a strong balance sheet with net
cash as of 31 October 2015 above €3.6 million (31.12.2014: € 2.42
million) while it paid dividends of € 280k to its shareholders
within the current financial year. Over 90% of Group cash is
maintained in banks in the United Kingdom. The Group does not
generate any revenues in the Greek market.
Enquiries:
CDialogues Plc
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Tel: +30 2106 300 930
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George Karakovounis
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Pale
Spanos
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Allenby Capital Limited
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Tel: 0203 328 5656
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David Hart
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Alex Brearley
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Walbrook PR Ltd
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Tel: 020 7933
8780/ cdialogues@walbrookpr.com
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Paul Cornelius
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Mob: 07866 384 707
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Nick Rome
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Mob: 07748 325 236
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About CDialogues
CDialogues provides mobile marketing solutions
enabling MNOs to retain and acquire market share, increase average
revenue per user (ARPU) and reducing subscriber churn.
The Company's products and services deliver fully
managed solutions, utilizing advanced Data analytics techniques
combined with Linguistic engineering marketing, to build awareness
and multiply sales and opt-ins of promotional offerings and other
mobile content being offered by the MNOs.
The solutions designed by the Company, are tailored
and served with the appropriate Linguistic format, to each
individual mobile network subscriber typology and geography it
operates in, using its proprietary software and scalable
infrastructure.
The majority of CDialogues' revenues are derived from
a recurring subscription-based revenue model, which has been
pioneered by the Company. As a result, the Company benefits from
incremental cash flow growth from each new campaign customer and
mobile network subscriber.
The Company's near-term focus is on growing both its
customer base and expanding its geographic footprint in selected
markets in the Middle East, Africa and Southeast Asia, where mobile
device penetration and mobile network usage is growing rapidly.
CDialogues has been profitable and cash flow positive
since commercial operations began in early 2012.