TeleMasters, a listed fixed-line telecommunication service provider, has reported a profit of R2.33 million for the six months ended 31 December 2013.
Operating profit climbed to R3.5 million, from R107,000 in the comparative period
This, TeleMasters said, was achieved with lower revenue when compared with the comparative period and is in line with the expected improvement in margins achieved as a result of the reported change over in part of the technological platform used, from LCR to a new Digital Direct offering.
Revenue for the period was at R55 million, down from R70.7 million, with headline earnings per share at 5.55 cents.
“The newer offering and innovations applied to our business solution resulted in a higher gross margin of 29% when compared with the prior period´s 14.8% gross margin,” the group said.
TeleMasters said it is converting and re-capturing market share which was lost as a result of the changes to the interconnect pricing model in previous years.
Looking ahead, the group said it continues with its transition from a fixed cellular agency to a fully ICASA licensed fixed line Telco.
The company has invested in a unique set of technologies that delivers the highest quality of voice. It has successfully implemented its Virtual PBX service and rolled this out profitably.
“As reported previously, our transition to the new technologies has brought a higher quality solution to clients and higher margins to the group when compared to that earned when only using Lease Cost Routing as we did in the past.”
Subsequent to the period end, there was some corporate activity and a new subsidiary, which TeleMasters said will help the company target a specific SME segment of the market, acquired for a purchase price of R600,000.