Gamma profits up and debt down

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Service provider Gamma Telecom has reported an increase in profit of £1.4 million in 2009, compared with 2008. Gamma Telecom claimed its 2009 results as its best ever.

Gamma Telecom increased its gross profit for 2009 to £33.4 million, while reducing its net debt from £5.7 million to £1.6 million.

It expects to be debt-free by the first half of this year. Turnover decreased by 11 per cent to £141.3 million, predominantly due to the acquisition of Tiscali by Carphone Warehouse, which was Gamma’s biggest customer. Since the acquisition, Carphone has preferred to connect through its own fixed line providers.

However, overall, Gamma Telecom’s active channel reseller base grew by eight per cent in the year to 550.

Gamma Telecom chief executive Bob Falconer said: “These are an excellent set of results during a recessionary period, particularly given that the volumes for legacy voice products have been falling.

“The Gamma Telecom business is currently in great shape and almost debt free. We do appreciate the business that our growing band of channel partners has chosen to place with us, and we have been impressed by the strength and durability of the channel during an exceptionally tough year.”

 

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