TeleMasters, a listed fixed-line telecommunication service provider, has reported a profit of R2.33 million\u00a0for the six months ended 31 December 2013.<\/p>\n
Operating profit\u00a0climbed\u00a0to R3.5 million, from R107,000 in the\u00a0comparative\u00a0period<\/p>\n
This, TeleMasters said, was achieved with lower revenue when compared with the comparative period and is in\u00a0line with the expected improvement in margins achieved as a result of the reported change over in part of the\u00a0technological platform used, from LCR to a new Digital Direct offering.<\/p>\n
Revenue\u00a0for the period was at R55 million, \u00a0down from R70.7 million, with headline earnings per share at 5.55 cents.<\/p>\n
“The newer offering and innovations applied to our\u00a0business solution resulted in a higher gross margin of 29% when compared with the prior period\u00b4s 14.8% gross margin,” the group said.<\/p>\n
TeleMasters said it is converting and re-capturing market share which was lost as a result of the changes to the interconnect\u00a0pricing model in previous years.<\/p>\n
Looking ahead, the\u00a0group said it continues with its transition from a fixed cellular agency to a fully ICASA licensed fixed line Telco.<\/p>\n
The company has invested in a unique set of technologies that delivers the highest quality of voice. It has successfully\u00a0implemented its Virtual PBX service and rolled this out profitably.<\/p>\n
“As reported previously, our transition to the new\u00a0technologies has brought a higher quality solution to clients and higher margins to the group when compared to that\u00a0earned when only using Lease Cost Routing as we did in the past.”<\/p>\n
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.<\/p>\n
TeleMasters points to continued recovery<\/strong><\/a><\/p>\n TeleMasters swings into profit<\/strong><\/a><\/p>\n Struggling TeleMasters looks to new platforms<\/strong><\/a><\/p>\n