Mobile marketing and content company Motopia (ASX:MOT) has reported a $16.6 million loss for FY11, due to impairment charges and disappointing results from its mConnect acquisition.
The loss for the year includes goodwill impairment charges amortisation and depreciation costs of around $13 million, meaning the company incurred an operating loss of $3.6 million.
Group revenue climbed from $711,000 in FY10 to $2.6 million in FY11.
Motopia said in its financial report that the financial performance of the mConnect group “has since acquisition been consistently below forecasts.”
Motopia (then MedicVision) arranged to buy mConnect for $8 million in October, as it made its transition from the medical device sector.
In July, Motopia indicated it was considering making a warranty claim on the acquisition due to the disappointing outcome.
The report adds that the cBox multi-channel digital marketing unit likewise turned in an “unsatisfactory” showing for the year, recording an operating loss of $153,000.
Motopia disposed of cBox earlier this month, after deciding that the level of investment required to turn it around would have diverted resources from the group's core activities.
Despite the operating loss, the company said it expects its other recent acquisitions, including 2moro Mobile and Pro Fantasy Sports, to enable it to improve revenue and return to profit “in the near future.”
MOT shares grew 12.5% on Thursday to $0.018.