Vox Telecom increases profit
Vox Telecom is facing the challenges of end-of-life of cellular Least Cost Routing (LCR) and the imminent death of dial-up internet revenue, and has to ensure that it can retain these customer bases and convert them to alternate services on the Vox Telecom network.
Vox Telecom Group MD Douglas Reed is however confident that they will succeed, pointing out that the conversion of LCR customers to Vox Telecom’s Cristal Vox voice service is going well.
“Ironically,” says Reed, “both the LCR and dial-up services remain highly cash-generative, which is giving us the time we require to transfer these valuable customers to our platforms. Targeting a brand new customer base is a far more time consuming and expensive exercise.”
Despite an 11% drop in revenue, and Earnings per Share (EPS) being down by 6%, the Group achieved R257m in Gross Profit, up 9% when compared to the 6 months ending 28 February 2010.
In addition, cash on hand increased by 15% to R122 million. The Group invested a further R32m into its network and fixed assets.
“We remain in a deflationary environment in terms of voice and data,” says Reed. “Under these circumstances, we are pleased with our ability to increase gross profits and look forward to next year when our growth will return to historical levels.”
“At the end of the day what counts is that we continue saving our customers money through a range of cutting-edge services,” concluded Reed.
Vox Telecom financial results << Comments and views
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