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Gamma aiming to increase revenues by 20 per cent

Mobile News
March 30, 2011

Target follows company’s announcement that it posted best ever financial results in 2010

Gamma Telecom is aiming to grow its total revenues by almost 20 per cent by the end of next year to £156.2 million, after it posted financial results for 2010 that saw its best annual performance since the business was established in 2001.

Underlying revenue increased 5.6 per cent to £6.6 million, with total revenue now standing at £126.2 million.

Gross profit grew from 23.6 per cent to 26.5 per cent in what Gamma Telecom said was due to the increased proportion of business coming from higher-margin IP and software-based products.

The company’s EBITDA rose 21.5 per cent to £7.9 million despite the loss of its Tiscali contract. Profit before tax was up 69.9 per cent to £3.9 million and net cash-flow increased by five per cent to £4.3 million.

The company’s recent MVNA agreement with Vodafone is currently being rolled out among its near-600 reseller partners with the first phase of its new hosted platform, Horizon, available in April.

Over the next 12 months the portal will develop into a single Gamma Telecom user interface.

The company is launching Gamma Assured IP Services to its resellers in April, a voice-only service sold exclusively with Gamma Telecom’s IP telephony products, as well as its Next Generation Broadband services, which will follow in June.

Gamma Telecom chief financial officer Gerard Sreeves said the company is looking to add £15 million a year over the next two years to its total revenue figure.

The growth from new products this year will probably not be recognised until they come to full fruition, but the immediate target is to continue the growth it has experienced with its inbound calling and SIP trunking products, which is what it based its success on last year.

“We’ve primarily based our success on our inbound calling and SIP trunking products, and are expecting that growth to continue this year,” he said.

“The introduction of our new products in 2011 will be relatively modest in profit terms, because there is an element of start-up cost with those.

“The main profit drivers we see in 2011 will be built on the products we currently have in our portfolio.

We’re looking to grow revenues by around £15 million year-on-year until the end of 2012.”

Commenting on Gamma Telecom’s financial results, chief executive Bob Falconer (pictured) said: “2010 has been a good year of progress for the Gamma group with every key area in the business demonstrating solid improvement, backed by a strong set of financial results.

Our customer base has widened and strengthened, with a much-reduced dependency on any single customer and a rapidly growing contribution from our newer products, such as our inbound suite of services, which has exceeded our expectations.

“We will be driving ahead with our investment programme, introducing significant new services for 2011 with the objective of continuing to give Gamma partners that extra edge in the marketplace.

These include a range of new data services; a new hosted platform; and, off the back of our recently announced MVNA agreement with Vodafone UK, a more comprehensive mobile offering that offers true FMC.”


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