Revenue growth and strong results from Telio
Press release from Telio
Oslo, Norway, 18 August 2011
- Operating profit of NOK 23.5 million in 2nd quarter
Telio continues to deliver strong results, thereby confirming their position as a leading European provider of access independent broadband telephone services. Telio increased its customer base by 1,695 net new customers in the second quarter. Revenues in the second quarter ended at NOK 97.2 million, an increase from NOK 95.7 million in the second quarter last year.
– We are satisfied with revenue growth and continued strong profitability in the second quarter. A gross margin of 65.5% is very strong and confirms the underlying profitability in our business model. In addition, it is encouraging to see a positive development in our home market in both the residential and business segment with new all-time-high sales to the business market in June, says Eirik Lunde, CEO of Telio Holding ASA.
Wholesale agreement with Call Norwegian
A major event in the quarter was the wholesale agreement for mobile IP telephony services with Call Norwegian. Norwegian is the first airline to introduce internet onboard the company's flights in Europe and will through this agreement with Telio provide mobile IP telephony services to its passengers in Norway and abroad. The services are based on Telio's highly recognized technology platform which provides a high user experience with HD sound and high quality video communication.
- We are very pleased to announce this agreement. Norwegian is the first European airline to introduce internet onboard their planes. This agreement demonstrates that they see the value in providing "over the top" services to their customers. The agreement is an acknowledgment of Telio's technological platform and shows the opportunities for wholesale of Telio's services. It is also an important step forward to expand distribution and the use of IP telephony in a new and exciting way," said CEO Eirik Lunde in Telio Holding ASA.
New price plans in Norway
In May, the company introduced a set of new price plans for the Norwegian market. The new price plans will be more attractive to both the residential and business segment making the company even more competitive in the Norwegian telecom market. The company has received positive feedback from the market on these new price plans.
Continued growth in international markets
Telio continues to grow in the markets outside Norway. Especially, the Dutch operation has achieved strong growth and the company now has a customer base of 45,000 subscribers in the Netherlands. Net increase in customers in the Netherlands was 1,483 while the increase was 76 customers in Denmark and 205 customers in Switzerland in 2nd quarter.
Strong financial results
In the 2nd quarter 2011, the Telio Group achieved revenues of NOK 97.2 million compared to NOK 95.7 million in the year-ago quarter. EBITDA was NOK 33.2 million (34.2% EBITDA margin) compared to NOK 34.3 million (35.8 % EBITDA margin) in the same quarter last year. Operating profit ended at NOK 23.5 million compared to NOK 24.1 million in the 2nd quarter of 2010.
(See separate financial report and market presentation for Q2 2011 at http://www.telioholding.no/investor_relations/reports_presentations)
For further information, please contact:
Mr. Eirik Lunde, CEO
Telephone: +47 23 62 66 88.
Mobile: +47 48 09 69 64
Download high definition pictures of CEO Eirik Lunde at http://www.telio.ch/om_telio/presse
E-mail: eirik.lunde@telio.no