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Trading statements

Messaging International issues trading update

27 March 2015 09:45

Messaging Int'l said in recent months it 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.

At 9:45am: (LON:MES) Messaging International PLC share price was -0.1p at 0.63p

Story provided by StockMarketWire.com

Related Company: MES

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