New regulations hit Zamano's sales hard
ZAMANO, which sells applications for mobile phones, issued a profit warning yesterday as new regulations hit sales in Ireland.
"Industry regulations which took effect in early 2010 had a far greater impact than initially expected on customer acquisition and retention, with revenue in the Irish market particularly affected," the company said in a trading statement issued ahead of a shareholder meeting in Dublin yesterday.
The company said it had shed staff and developed a new business plan to stabilise the fall in sales. The plan sees the company focusing on four markets; Ireland, United States, UK, and Spain.
Earnings before interest, taxes, depreciation, and amortisation will be "significantly" lower in the second half of the year, Zamano added. Sales will also fall and a material impairment charge against intangible assets is also expected, the company said.
Shares in the company slid 14.3pc to 6 cents by the close of trade in Dublin yesterday, valuing the company at just €5.7m.