VeriSign May Be Hurt By Ringtone Ad Moratorium

Banc of America Securities has warned that a planned moratorium on ringtone ads in Germany could impact Verisign’s revenues going forward. Verisign own Jamba and Jamster and in Germany, and MTV in that country has announced that it will halt the annoying ringtone ads in primetime, starting October.
The research firm said a 20% revenue shortfall for Jamba’s German business would equate to an annual earnings impact of 2 cents per share. Germany likely accounts for 30% of total Jamba revenue, or roughly $180 million in calendar 2005.

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