Daisy expecting growth of mobile business to accelerate

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Telecoms provider expecting mobile margins to improve over the long term following the introduction of Vodafone’s revenue share model in August

Daisy Group is predicting the growth of its mobile business will accelerate after it agreed new commercial terms with Vodafone this year.

The telecoms provider said the arrangements provide an improvement in mobile margins over the long term but with reduction in up-front commissions received from the network.

Vodafone launched its revenue share model on August 1, with the amount of revenue share paid varying between silver, gold and platinum partners – ranging from around 35 per cent to 46 per cent. Payments also vary depending on whether any upfront payments for connections are requested.

Daisy made the forecast as it posted a trading update for the six month period ending September 30, with the Group announcing the results on December 3.

It said revenue and adjusted EBITDA is in line with their expectations and that the Group is comfortable in its ability to meet full year market expectations.

The company also that Daisy Data Centre Solutions Limited (DDCSL), the data centre business formerly owned by 2e2, is performing in line with expectations and that there has been very good progress in signing new contracts with its former customer base.

Daisy Group was appointed by Oakley Capital Private Equity in February to manage the 2e2 data centre business after 2e2 had entered administration the previous month.

It said there have been a number of managed service contract wins with public and private sector customers, and that these types of contracts provide good quality cashflow over the span of the duration of the agreement following a level of upfront investment.

Daisy Group CEO Matthew Riley (pictured) said: “I am pleased with the progress made during the period, particularly with the large managed service wins and the customer reaction to our acquisition of the hosting business DDCSL.  We are very proud to be paying our first dividend following our acquisition strategy over the last few years and we reiterate our commitment to this whilst still being able to invest to support our mid market customers.”

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