Mobile Entertainment reported this morning on Buongiorno's Q1 2009 earnings announcement. The company experienced a 15% decrease in sales over the same period a year ago...which is not entirely surprising given the economy. Probably more troubling for the Italian mobile media & technology company is that they continue to rely upon sales of ringtones & graphics through breakage-model D2C subscription services for the bulk of their revenues. This model has been on a long death spiral with consumers and regulators...and these products are totally commoditized. That said, the company has been able to maintain its position as the #2 mobile entertainment company worldwide by revenue (behind Spain's Zed) and they continue to search for ways to leverage their substantial infrastructure & expertise to create new mobile solutions for consumers & business partners. As I reported earlier I'm skeptical about one of these initiatives in particular (called peoplesound), but it's a move in the right direction. Innovation/diversification are mission critical if Buongiorno wants to stay relevant...and if they ever want to start generating healthier profits for their shareholders.
btw -- here's a look at Buongiorno's revs & consolidated net over the last 2 years in millions of US dollars. Note that I calculated the €/$ rate @ 1.3597 & that the jump in 2008 revs is attributable to their acquisition of iTouch at the very end of 2007.