Primus Telecom ahead of plan on revenue and EBITDA

By Stuart Corner
Monday, 08 March 2010 16:14

IT Industry - Market

The CEO of Primus Australia, Ravi Bhatia, says the company exceeded its EBITDA and revenue targets for the year to 31 December.

Primus US parent company reported its results for the year to 31 December 2009 last week saying that Primus Australia had contributed $US69.0m in revenue for the fourth quarter of 2009.

In US dollar terms this represented an increase on the immediate prior quarter and the corresponding quarter a year ago. However when currency exchange effects are eliminated, net revenue decreased $US0.5 million, 0.8 percent, from the third quarter of 2009. Year-on-year net revenue decreased $US4.6m, 8.3 percent, from the fourth quarter a year ago.

Primus (US) said: "The $[US]0.5m sequential net revenue decline, exclusive of currency, is comprised of a $[US] 0.6m decline from traditional voice, dial-Up internet and off-net local services, partially offset by a $[US]0.1m increase from on-net local, VoIP, broadband Internet, wireless, data and hosting service revenue."

Primus Australia CEO, Ravi Bhatia, told iTWire. "We expected revenue to be down. There were services we were shedding which were producing no margin for us, primarily those in the consumer space like dial-up Internet."

He said that Primus Australia had "exceeded its plan for EBITDA by 10 percent and for revenue by about three percent. Our EBITDA grew 38 percent year over year."

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