TeleMasters swings into profit

·12 Apr 2013

JSE-listed telecommunications specialist, TeleMasters has reported an operating profit of R291,869 for the three months ended December 2012, from a prior loss of R1.39 million.

The group reported a gross profit of R7.07 million, from R6.703 million in 2011, while headline earnings per share improved to 0.49 cents, compared to a headline loss of 2.50 before.

Revenue declined to R33.33 million, from R55.96 million, but the group moved to rationalise its position.

“The first quarter results reflects management´s expectations of lower operating costs resulting from the cost cutting efforts implemented in the previous year. The ongoing growth of revenue using our new technology platform digital direct+ continues to grow,” TeleMasters said.

The group said its revenue had fallen in the current quarter mainly because of services previously provided using the Least Cost Routing technology stopping, as larger tenders were not renewed.

“Higher margins have been realised and are expected to continue which will result in a more profitable position compared to previous years. This expectation being reflected in profitable results compared with the loss reported in the first quarter of the previous financial year,” it said.

TeleMasters said its directors are confident that the sustainability of the group´s operations has been achieved and expect operating results to systematically increase in each coming quarter.

“The group has the best quality telecommunication solution now available in the South African market. Many of the learning fees to ensure a high quality solution were paid in the previous financial year,” it said.

On 18 December 2012, the board declared a final dividend of 1 cent per share, and then on 28 March 2013, the board declared an interim dividend of 0.5 cent per share.