Cellcast still in the red

2nd Jun 2011 15:05

Cellcast, which describes itself as a "provider of participatory television programming and interactive telephony technology for the fast growing cross-platform digital entertainment sector" said revenues rose to £19.2m from £16.8m the previous year. Losses before tax narrowed to £310,000 from £1.88m.Chief executive Andrew Wilson said that the company's UK business is "showing signs of stability."Regulatory threats in the UK appear to be manageable for now, the company said. However, with limited growth in TV-derived revenues in the UK, Cellcast is concentrating on international markets.Revenues in India have been growing fast but margins have been eroded due to the company having to compete with "advertising-supported programming that may provide better yields for TV networks in the current advertising market."Cellcast Middle East had a difficult year resulting from political unrest in its home base in Lebanon and across the region. "Continuing regional instability makes it difficult to predict when the business will return to profitability," the company said.Revenues have continued growing in the first half of 2011 despite the tough economic environment, but the company added: "We do however expect some erosion of margins in the second half of 2011, a result of emerging competition and the increasing cost of bandwidth."---RG