Tecnotree reports another strong third quarter performance
1 Adjusted operating result = operating result without one-time items.
2 adjusted result for the period = result for the period without one-time items.
From the CEO’s Desk - “Robust third quarter performance”
I am happy to report that the Company continued its on-track performance this quarter. The last few quarters performance should dispel any doubts about the long-term prospects of the Company. The performance this year reinforces the fact that the Company has focused on the right priorities and has demonstrated growth in profits, while increasing the topline. While revenue growth has been our priority, we are equally focused on delivering the highest quality of service to our clients, optimizing our costs globally and thereby ensuring profitable growth.
In the beginning of 2019, Tecnotree invested in renewing its portfolio and build a state-of-the-art micro-services and open API based Digital product suite – Tecnotee Digital BSS Suite 5 to help operators in their Digital Transformation journey and already the deliveries of a few of these new products have started for our key customers. We believe that with the help of these products, our operator customers will be able to improve customer experience, reduce TCO, increase agility & speed and also increase revenues.
Revenue
Revenue continues to be on the growth track and the third quarter revenue of EUR 12.4 million is same as same quarter last year and 13% higher than the previous quarter of 2019 of EUR 11.0 million and year-to-date revenue of EUR 32.9 million is 10% higher compared to the same period last year. The growth in the Middle East & Africa region, that witnessed 37% revenue growth in the second quarter, delivered a solid growth of 17% over the previous quarter thereby making two very strong back-to-back quarters. In the third quarter Asia Pacific and Europe region demonstrated strong recovery by reporting 72% and 244% growths compared to previous quarter respectively.
Costs
In the third quarter, we continued our focus on cost optimization, which we believe is an ongoing exercise and needs close attention and continuous realignment. We are also cognizant of the fact that while the cost controls are important, such measures should not impede Tecnotree’s growth and R&D trajectory.
Operating costs in the third quarter were EUR 1.6 million lower than in the same quarter last year and EUR 2.9 million lower during the first three quarters last year. Actions taken to improve cost efficiency continue to bear fruit. We will continue to monitor the costs closely and ensure optimal utilization of our resources.
Profit
Superior results in terms of profitability underlines the turnaround accomplished not only compared to difficult last year but also years before that. Now reported year-to-date EBIT of 10.3 million is the best achievement in the company’s history and EUR 9.0 million or 683% better compared to last year. Third quarter EBIT of EUR 4.3 million is 59% better compared to last year. Importantly to us this reflected also in cash flow being safe EUR 2.1 million positive in the third quarter, well supporting the improved overall cash situation of the company.
I am now delighted to report that the progress shown by the company in the last few quarters has brought it back into black and the Company is reporting, for the first nine months of the year, an Earnings per share of 0.02 Euros and Equity per share in the end of review period of 0.01 Euros, as against negative EPS in the same period last year.
Other Business Updates
Tecnotree continues to grow its business across global markets by increasing the presence of our brand and taking advantage of the onset of 5G implementations and the digital transformation requirements of our customers. We hope to synergize new partnerships with other internet of things (IOT) providers, to increase our competitive edge, our reach to new markets and to strengthen our customer base globally, so that our customers may benefit from the full range of the state-of-the-art Tecnotree Digital BSS Suite 5 products and our high quality digital Deployment, Operational and Managed Services capabilities.
TECNOTREE CORPORATION
Board of Directors
FURTHER INFORMATION, investors and media: Padma Ravichander,CEO,Tel. +97 156 414 1420 Priyesh Ranjan, CFO, tel +971 50 955 1188 /br> www.tecnotree.com
ABOUT TECNOTREE
Tecnotree is a global provider of telecom IT solutions for the management of products, customers and revenue. Tecnotree helps Communications Service Providers to transform their business towards a marketplace of digital services. Tecnotree empowers service providers to monetize service bundles, provide personalized user experiences and augment value throughout the customer lifecycle. With around 600 telecom experts, Tecnotree serves around 90 service providers in around 70 countries. Tecnotree is listed on the main list of NASDAQ Helsinki with the trading code TEM1V.
