PowerTel posts strong first quarter financials

Stan Beer
Thursday, 05 May 2005 08:30

IT Industry - Development

Specialist business telco, PowerTel (ASX:PWT), has posted an impressive 35% uplift in revenue compared to the Q104.

Highlights of the result include:

'¢ Revenue of $46.3 million, an increase of 35% from $34.3 million in the
previous corresponding period;

'¢ EBITDA increased to $6.1 million, up 53% from $4 million in the
previous corresponding period;

'¢ Continuing strong customer growth with the addition of 290 customers
to PowerTel's national network; and

'¢ Continuing strong growth in revenue mix, with data contributing 60% of
total revenue, up from 53% on the previous corresponding period.

Managing director Paul Broad said: 'This is a solid result that demonstrates
the strong performance of our underlying operations. The increase in operational revenue was underpinned by contributions from the recently acquired NTT and Request businesses, in addition to improving gross margin by further diversifying our product mix and expanding our network.
'The result was impacted by one-off costs associated with the acquisition of
NTT and the organisational restructure. Our ongoing commitment to product
development, service delivery and our desire to retain NTT customers
resulted in these increased costs,' he said.

Broad said PowerTel continued to achieve pleasing results through its
strategy to maximise operational leverage, shift the revenue mix from voice to
data, grow customers and broaden its focus to market.

'Rebalancing our product mix away from voice to a better combination and
higher margin voice and data offering has been a significant achievement in
the first quarter,' he said.

Powertel shares were thinly traded and finished up 1c to close on $1.20.