Revenues at Redeem set to reach £90m after Three deal


Scottish recycling firm Redeem already recycles 200,000 handsets a month and expects the Three deal to add an extra 20,000 devices per month

Redeem expects its annual revenues to reach almost £90 million after striking its latest network recycling contract with Three.

The Scottish recycling firm, which already provides recycling services for O2, told Mobile News it now recycles 200,000 handsets every month, and annual revenues have quadrupled to £80 million in just four years. EBITDA in its last financial year was £3.8 million.

Redeem’s chief commercial officer Mark Chambers told Mobile News he expects the Three deal, which began on August 4, will add around 20,000 handsets per month – a number expected to increase revenues by around 10 per-cent.

Chambers claimed Redeem beat competition from two other companies (which could not be named) to win the tender, which started at the beginning of the year. The tender was previously held by Mazuma subsidiary Revive Mobile but Mobile News understands the recycling firm did not put its name forward to renew its 10 year agreement.
“Running the O2 programme shows our pedigree and puts us up there with the best and we think that helps us stand out,” said Chambers.

Trade in rollout

“As we roll out to more and more stores and increase the proposition, our aim is to be recycling more than 20,000 handsets per month by the end of the first year.”

Three is now rolling out the handset trade-in service across its 345 retail stores over the next few months
as well as through its call centres, based in Pune and Mumbai.

Recycling service

Three customers will be offered a trade in price on their existing handset, with the value being used towards a new deal. When recycling in-store, they will be given an on-the-spot valuation, while money will be paid into their account the same day the phone is received by Redeem.

“It is similar to other trade-in programmes we run for other network operators,” Chambers explained. “For Three, there will be a specific online portal which went live last Wednesday for their customers, plus in-store trade-in which we have started rolling out at stores.”