Weak sterling hits Zamano first half profits

Mobile data services provider Zamano said first half profits would miss expectations this year due to sterling weakness.

In a trading statement today Zamano said it expected earnings before interest, tax, depreciation and amortisation (EBITDA) of €2.3 million, ahead of earnings for the same period in 2007.

The company said the sterling weakness was significant because a "big proportion of profits come from the UK" and it also noted that the integration of Red Circle, the Dublin-based peer Zamano paid €18 million for Circle last November, had taken longer than expected.

However, this process was now complete the company said, "leading to an improvement in trading in May and June".

Looking forward, Zamano said it expected second half earnings to show an improvement on the first six months but noted it was closely watching the slowdown in consumer confidence in its key markets.

In April, Zamano said it planned to double revenues this year to more than €50 million. Zamano will publish interim results in mid-September.

Zamano shares closed up 2 cent at €0.29, a rise of 7.4 per cent. The stock has lost over 32 per cent so far this year.