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Tesco Deal Delivering Fiscal Results |
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Written by Adam Gosling
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Friday, 31 August 2007 |
Australian listed whitelabel VoIP provider, Freshtel has announced a
134 percent increase in revenues thanks to a full year's operation of
its whitelabel service delivered to British retailing giant, Tesco.
The company's revenue from ordinary activity increased 137% to $4.6
million, but the sales revenue, from call time, hardware royalties and
license fees, increased by 165% to $3.4 million, largely due to the
Tesco white label contract completing its first full year of operations.
Even that wasn't enough to put the company in the black but it
certainly put a dent in last years red ink finishing just A$7.6 million
shy of break even for the full year to 30 June 2007.
Recently appointed Chief Executive Officer of Freshtel, Rhonda
O'Donnell, said the result was very encouraging and one which
"demonstrates the viability of Freshtel's unique white label business
model".
"This was the first full year that the Tesco white label agreement was
in operation and the results have been extremely pleasing. The Tesco
Internet Phone contributed to a 165 per cent increase in sales
revenue," she said.
"Furthermore, we expect this revenue growth to continue strongly over
the next year as we realise the full potential of the Tesco contract.
This growth will be reinforced by our increased capacity to support the
growth of the Tesco subscriber base through the newly strengthened V2
network, and the execution of Tesco's product re-launch next month,"
said O'Donnell.
The company spent a little more on R&D projects this year than last
as it worked to roll out a new network capable of supporting mobile
VoIP calling and a higher number of subscribers, but with the mobile
solution likely to become available next year Freshtel will be well
positioned to offer the solution to other retailers as a whitelable
solution, said the CEO.
"We consider this a very valuable and necessary investment that will
drive our future growth and ensure our ability to cater for several
prospective white label agreements that form the cornerstone of our
competitive advantage.
"The development of V2, our next generation telecommunications grade
network was critical to achieving greater scale. This network
infrastructure will enable us to accommodate growth in subscribers
through existing and new white label partnerships without the need for
excessive capital expenditure," O'Donnell said.
www.freshtel.net
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