CDialogues PLC Update on new Business Opportunities (4094Z)
26 May 2016 - 7:58PM
UK Regulatory
TIDMCDOG
RNS Number : 4094Z
CDialogues PLC
26 May 2016
CDialogues plc
("CDialogues", the "Company" or the "Group")
Update on new Business Opportunities
CDialogues plc (AIM: CDOG), the provider of mobile marketing
solutions to Mobile Network Operators (MNOs), provides an update on
its new business opportunities.
As has been highlighted in previous announcements by CDialogues,
the Company has been seeking to increase the number of its customer
contracts through a variety of new business initiatives. This has
been an area of particular focus given that the Company's four
existing contracts are contributing declining revenues over
time.
It has become clear to the Board that the market conditions for
winning new contracts have and continue to change. In particular,
the profit margin that can be achieved by CDialogues on new
business opportunities is currently at a level which makes little
commercial or financial sense to pursue. As a result, the Company
is unlikely to engage in any new contracts until market conditions
change.
The Company remains focussed on maximising the revenues from its
four existing contracts though, as highlighted above, the revenues
from these contracts is in decline. These contracts, which are
short term in nature being on a rolling three-month basis, have
been in place since 2013 and 2014 and have been renewed at the end
of each term, though this cannot be guaranteed. The Board seeks to
ensure that the Group's relationships with its customers and level
of service minimises the risk of contracts not being renewed.
The Company remains in a strong cash position with approximately
EUR3.5m of cash and no debt as at 30 April 2016.
CDialogues Plc Tel: +30 2106 300 930
George Karakovounis
Pale Spanos
Allenby Capital Tel: 0203 328 5656
Limited
David Hart
Alex Brearley
Walbrook PR Ltd Tel: 020 7933 8780/ cdialogues@walbrookpr.com
Paul Cornelius Mob: 07866 384 707
Nick Rome Mob: 07748 325 236
About CDialogues
CDialogues provides mobile marketing solutions enabling MNOs to
retain and acquire market share, increase average revenue per user
(ARPU) and reducing subscriber churn.
The Company's products and services deliver fully managed
solutions, utilizing advanced Data analytics techniques combined
with Linguistic engineering marketing, to build awareness and
multiply sales and opt-ins of promotional offerings and other
mobile content being offered by the MNOs.
The solutions designed by the Company, are tailored and served
with the appropriate Linguistic format, to each individual mobile
network subscriber typology and geography it operates in, using its
proprietary software and scalable infrastructure.
The majority of CDialogues' revenues are derived from a
recurring subscription-based revenue model, which has been
pioneered by the Company. As a result, the Company benefits from
incremental cash flow growth from each new campaign customer and
mobile network subscriber.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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