Strong profitable customer growth for Telio
- 10,533 net new customers 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 10,533 net new customers in the second quarter, the strongest growth since 4th quarter 2006. Revenues in the 2nd quarter ended at NOK 95.7 million with an operating profit of NOK 24.1 million.
– An operating profit of NOK 24.1 million represents yet another strong qarter for Telio, especially taking into account that we have established an operation in Switzerland this year. We are also very satisfied with the strong customer intake in the quarter, says Eirik Lunde, CEO of Telio Holding ASA.
Reducing prices in Norway
In Norway, Telio reduced prices to international destinations significantly from 1 February. The company expects to see increased volume, more customers and increased customer loyalty from these price reductions.
Acquisition of Bellit AS
Telio Telecom AS acquired Bellit AS in the second quarter. Bellit AS has been present in the Norwegian telecom market for the last 6 years and provides broadband telephony services and mobile services to residential and business customers in Norway. Bellit’s limited size and position made it necessary to seek for structural solutions and for Telio this was a good opportunity to further strengthen its customer base and position in the Norwegian market.
Continued growth in international markets
Telio continues to grow in the markets outside Norway. Especially, the Dutch operation achieved a strong growth in customer intake during Q2. The customer base increased by 112% compared to Q2 2009.
The company launched its services to the Swiss market in January and full operation and first phase distribution were established during the first quarter. The company has seen the customer intake picking up during the second quarter reaching a total of 2,153 customers as of 30 June.
Strong financial results
In the 2nd quarter 2010, the Telio Group achieved revenues of NOK 95.7 million compared to NOK 99.1 million in the year-ago quarter. Revenues in Q2 09 included one-time implementation fee in the Netherlands (NOK 0.5 million) and revenues in Q2 10 are negatively affected by currency fluctuations (NOK 2 million) and price reductions introduced from 1 February. EBITDA before acquisition effects was NOK 34.3 million (36% EBITDA margin) compared to NOK 36.4 million (37 % EBITDA margin) in the same quarter last year. Operating profit before acquisition effects ended at NOK 24.1 million compared to NOK 26 million in the 2nd quarter of 2009.
(See separate financial report and market presentation for Q2 2010 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
-mail: eirik.lunde@telio.no