TeleMasters, a listed fixed-line telecommunication service provider, has showed signs of a continued recovery in delivering a small operating profit for the six month period ended March 2013.<\/p>\n
Revenue declined to R70.75 million, from R99.61 million, but the group recorded a small profit of R107,028, from a prior loss of R3.72 million.<\/p>\n
Diluted headline earnings per share increased to 0.15 cents, from a prior loss of 6.94 cents per share.<\/p>\n
TeleMasters said its revenue had fallen mainly because of services previously provided using the Least Cost Routing (LCR) technology stopping, as larger tenders were not renewed.<\/p>\n
It noted that its conversion of customers from LCR technology to its digital technology is proceeding at a constant pace and each month which passes results in a higher margin operation.<\/p>\n
\u201cDuring the previous year, less than 5% of total revenue resulted from the sale of fixed line airtime over our digital platform compared with over 21% in the current six month period,\u201d TeleMasters said.<\/p>\n
\u201cThis conversion,\u201d it added, \u201cassures the group’s profitability and sustainability over the long term on the back of lower revenue figures, but with the higher anticipated and currently realised gross and net profit percentages.<\/p>\n
The group stressed that trading conditions remain tight, but the overall financial position of the group is sound with good current ratio.<\/p>\n
TeleMasters said it continues to invest large amounts into equipment, which is partially funded from operating revenues and in part by external loan finance. A total of R2.95 million has been invested in new equipment during the reporting \u00a0period.<\/p>\n
An interim cash dividend of 0.5 cent per share was declared for the quarter.<\/p>\n
\u201cThe results are in line with the expectations of the board which has anticipated a gradual return to profitability and higher dividends with the passing of time,\u201d TeleMasters said.<\/p>\n
TeleMasters swings into profit<\/strong><\/a><\/p>\n Struggling TeleMasters looks to new platforms<\/strong><\/a><\/p>\n TeleMasters in delisting u-turn<\/strong><\/a><\/p>\n