€13.4m Zamano loss as sales slump
SALES at Irish mobile services firm Zamano slumped 37pc to €15.8m last year with the company racking up losses of €13.4m, compared to a €1.05m profit a year earlier.
Zamano chief executive John O'Shea said that the sharp fall in revenue was a result of regulatory changes that resulted in many of the company's business-to-business partners withdrawing from the mobile services market.
The large loss was also precipitated by a €12.6m goodwill impairment that was included to reflect "revised expectations of revenues and profits".
Despite the declines in revenues last year, Mr O'Shea said the income stream had actually stabilised and he ruled out any requirement to tap shareholders of the listed company for additional capital.
Zamano had about €2.7m in cash on its books at the end of 2010, and reached a new agreement with Bank of Scotland regarding outstanding indebtedness.
Zamano provides consumers with paid-for services for their mobile phones, and Mr O'Shea said that the company was currently examining services that could be sold, such as insurance or gambling services.