Frontier Smart Technologies profits fall as competition in digital radio heats up

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Frontier Smart Technologies Group reported profits fell in the first half of the year on lower margins and as increased competition in low cost digital radio solutions kept a lid on growth.

For the six months ended 30 June 2019, pre-tax profit fell to $3.4m from $4.5m as revenues slipped to £147.2m from £17m a year earlier.

Digital Radio (DAB and Smart Radio) revenues fell to US$13.1 from US$14.9 from, reflecting increased competition for low cost DAB solutions, partly offset by a stronger performance in smart radio, the company said.

'In percentage terms, gross margin fell from 42% to 38% of revenues, with both business lines seeing a narrowing of margins partly due to price pressure and partly due to product mix,' it added.

At 8:45am: (LON:FST) Frontier Smart Technologies Grp Ltd share price was 0p at 25p