MOBILE commerce company Zamano saw its Irish sales slump in the first half of the year after new regulations cut into its subscriber base.
The company, which provides services including premium rate text messages across Europe, saw Irish sales fall by 42pc to €2.2m between January and June in comparison to the same period before a year before.
It said a new code of practice from regulator ComReg which prevents “double opt-in” – two subscriptions from the same service – “effectively eliminated our subscription based revenues” in the second half of 2012 and first half of 2013.
But group-wide profits still jumped at the company despite falling sales across the board.
Operating profit rose by 14pc to €1.2m in the period, even though total revenues fell by 5pc to €9m.
Some of this jump in operating profit was due to falling administrative expenses, which were slashed by more than a fifth to €1.3m.
The company fared better in the UK, where sales jumped by a third to €5.6m. However it said it invested heavily in UK advertising to acquire new subscribers, which impacted on its profit margins.
“While our major markets of the UK and Ireland are challenging from a competitive and regulatory perspective, we have started to gradually penetrate new geographies with our existing direct to customer subscription and non-subscription services” added the company.
“A total of six new markets will be entered by the year end, which broadens our territorial base and gradually reduces our dependency on the UK and Ireland.”
“Our newly formed development opportunities team continues to explore, identify and target new product licensing, joint venturing and acquisition opportunities. An SMS product targeted at SMEs will be launched next month in Ireland and we anticipate that other market initiatives currently being undertaken by the development opportunities team will come to fruition in the near term future.”