Mobile Streams boss halves pay as part of cost-cutting exercise
By Iain Gilbert
Date: Friday 12 Apr 2019
(Sharecast News) - Mobile content delivery outfit Mobile Streams has undertaken a "comprehensive cost-cutting exercise" and is looking at all options as its cash pile dwindles.
Chief executive Simon Buckingham said: "Given the falling revenue, it was necessary to take decisive cost reduction actions. This has allowed the company to preserve and protect its remaining cash balances.
"The company is looking at all potential business development opportunities and other asset optimisation strategies."
The cost-cutting has included a significant reduction in headcount and rationalisation of its main operating centre in Argentina as well as reducing operating expenditure in the UK, US and India.
Mobile Streams' rationalisation and cost-cutting exercise has resulted in a £290,000 drop in redundancy costs and severance payments, primarily due to the long service of many employees and the severance terms of its Argentinean arm.
Following payment of its severance obligations, the AIM-listed firm's cash balance stood at £219,000.
Monthly operating expenses in Argentina will fall 72% year-on-year from May onwards, leading to a reduction in global operating expenses of around 62%.
As part of the cost-cutting exercise, Mobile Streams' chief executive and non-executive directors volunteered a partial salary deferral of 50%.
As of 0835 BST, Mobile Streams shares had climbed 6.36% to 0.18p.
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