Monstermob Expects Lower 2006 Profits On Regulatory Concerns

UK mobile content biggie Monstermob said that the UK market was challenging after new regulatory controls took effect in September, and its 2006 profits will be lower than 2005, but that it would see benefits from its investment in next-generation services, such as full-length music clips, during 2007.
In September, telecoms regulator Ofcom introduced regulations to restrict subscription services for ringtones and games after complaints that children were being duped into signing up for expensive subscription deals.
Group revenues for the year to end-Dec had risen 103 percent to 35.6 million pounds giving a 267 percent rise in earnings before EBITDA to 11 million pounds.
IOL: Investec analyst Matthew Pearson said the UK was now likely to contribute only 6% to earnings in 2006 compared with his earlier forecast of 10%, adding: “We had underestimated the scale of the UK slowdown.”

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