Trend to SIM-only deals pushes Redeem revenues to £95 million

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Growing popularity of used devices gives recycler 21 per cent uplift on gross profits.

Redeem has taken advantage of “big shifts” in the mobile market to end the year with £95 million revenue.

The financial results up to March 31 this year show revenue increased 18 per cent on the same period last year following the networks embracing per-owned devices.

Gross profit was up 21 per cent to £21 million and pre-tax earnings grew 26 per cent to £3 million matched by a growth in other target markets Spain, Estonia and the Middle East.

Redeem chief executive officer Paul Adams said that the growing popularity of pre-used handsets and the proliferation of leasing offers created more opportunities for the recycling

Redeem appears to have benefited from a trend for consumers to buy more used and refurbished devices rather than automatically upgrade every year or so.

Trend

Adams said: “With the big shifts that are happening in the mobile phone industry there’s going to be an ever-increasing opportunity for us to grow within the pre-used handset market. “Volumes are starting to increase but the pre-used market has become another important sales channel.”

Redeem subsidiary Envirofone has also seen increased growth this year with its revenues tripling from £1.4 million to £4.3 million. This is mainly due to Redeem transforming Envirofone into a consumer sales channel.

Exponential

Adams added: “Growth has been exponential. It was a priority last year to invest heavily in the way we directly sell pre-used handsets to consumers. “We’ve sold to more than five million regular consumers in the UK. This is turning into an established network of customers who are engaging with us on a regular basis. “We see the online sale of pre-used handsets only going one way and growing rapidly.”

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