Messaging International Plc Trading Statement (6768I)
March 27 2015 - 5:30AM
UK Regulatory
TIDMMES
RNS Number : 6768I
Messaging International Plc
27 March 2015
Messaging International Plc / Market: AIM / Epic: MES / Sector:
Technology
Messaging International Plc ('the Company')
Trading update
Messaging International Plc, the AIM traded developer of
messaging solutions, is pleased to provide the following trading
update in advance of its results for the year ended 31 December
2014 which are expected to be released in June 2015.
In recent months the Company has reached agreement on a change
of the business model for its Text-to-Landline Service with one of
its key mobile carrier customers in North America with which the
Company has a number of products not affected by this change. The
change transitions the Text-to-Landline Service from a standard SMS
fee to a premium SMS fee resulting in a lower amount of transmitted
messages with a corresponding decline in the revenue generated from
this customer. The Company is forecasting a decrease of
approximately $1m from the annual revenues generated from this
service for 2015 compared to 2014. However, as this service has
substantial direct costs, under the new business model the profit
margins are much higher and therefore the impact on the bottom line
is expected to be less than $400k.
Foreseeing that Value Added Services for Telecom operators are
going through a global market shift due to Smartphone penetration,
the Company initiated over a year ago a new Business Mobile
Messaging solution. Unlike other messaging applications such as
Viber and WhatsApp, TeleMessage's app is targeted at business
clients and offers a "managed, secure, reliable and IT ready" app
and service.
Companies recognise the need to embed their mobile messaging in
the organization in a way similar to other communication systems
such as phone and emails. The mobile environment is even more
challenging because employees communicate internally with other
employees and externally with partners and clients using public
apps of which companies have no ability to secure or to audit the
interaction. Groups' are formed on sensitive subjects such as
business transactions. In addition, the security and management
challenge is intensified by the fact that more and more employees
use their own devices at work,
Guy Levit, CEO of Messaging International Plc, said, "Even
though the product has been commercially available for only a few
months, we have seen a growing interest from existing clients and
newcomers. In particular, healthcare and financial organizations
that need to comply with strict security policies and need to keep
all company information confidential. Initial commercial deals for
this product have been signed and more substantial deals are
expected during the second half of this year and beyond.
TeleMessage has made a strategic move to develop this product
and market. In addition to substantial investment in R&D, we
have made substantial investments in marketing including the
implementation of automated sales and marketing systems, content
creation and branding, all of which should lead to higher exposure
to businesses and ultimately generate sales. To facilitate its
growth the Company secured the new venture lending finance
announced on January 27(th) and may seek additional funding to
allow it to seize the opportunity of this product".
**ENDS**
For further information visit www.telemessage.com or
contact:
Guy Levit Messaging International Plc Tel: + 972 3 9225252
Mark Percy Cantor Fitzgerald Europe Tel: +44 (0) 20 7894
7000
Catherine Leftley Cantor Fitzgerald Europe Tel: +44 (0) 20 7894
7000
Messaging International Plc joined AIM in August 2005. Its 100%
owned subsidiary, TeleMessage Ltd (www.telemessage.com), delivers
smart and secure messaging seamlessly over any communication
device. Designed specifically for mobile operators and enterprises,
the enterprise and VAS consumer solutions intelligently and
seamlessly handle text, voice, data, and multimedia messages as
well as IP messaging via Smartphone push notifications or RCS over
mobiles, tablets, the web, Office, APIs and IT infrastructure. The
Company has a number of contracts with major blue chip companies
including Sprint, one of the largest wireless providers in the US,
Rogers Wireless, the largest wireless provider in Canada, and many
more.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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