MOBILE PHONE software group Zamano has announced its earnings before interest, taxes, depreciation, and amortisation (EBITDA) jumped 36 per cent to €5 million in 2008.
The group said the figures were driven by top-line growth and significant cost reductions in the second half of the year.
Revenue also grew 68 per cent to €41.4 million during the period, largely due to the acquisitions of Red Circle and Eirborne in 2007, according to the group.
The figures, which were in line with expectations, were announced at the agm in Dublin yesterday.
Zamano chief executive officer John O’Shea said operating costs had been reduced by 6 per cent of revenue compared to the previous year.
The firm also expects EBITDA for the six months to the end of June to reach €2.3 million, while strong cash generation has reduced net debt by 18 per cent to €5.9 million during the period.
Although revenue was below expectation it was offset by the improved gross margins and lower operating costs. “We still have quite a large amount of debt. We have to pay that debt down,” said chairman Rod Matthews.
Meanwhile, the group’s two main divisions, business to business (B2B) and direct to consumer (D2C), produced a mixed performance in 2008.
Revenue from B2B slipped 5 per cent to €11.9 million, largely due to the weakness of the sterling.
However, the D2C division increased external revenue by 141 per cent to €29.5 million as a result of the acquisitions.
Mr Matthews said the group was satisfied with the results.
“Many companies are struggling. I am pleased to say, while it is not that easy, but that we have a decent set of numbers that we are looking at here.”
