BURNABY, BC – Smart phones sales continued power financial results at Glentel.
The telecom retailer reported consolidated sales for its third quarter ended September 30, 2009 of $81.9 million, compared to $90.6 million in the same period in 2008. Operating income before interest and taxes was $8.85 million, compared to $9.68 million last year, while net income was $5.83 million, compared to $6.55 million in 2008.
"We are very pleased with our third quarter financial results," said president and CEO Thomas Skidmore, in a statement. "Retail sales are in line with our 2009 targets but down when compared to the extraordinary results for the third quarter in 2008 due to the launch of the Apple iPhone. Smartphone devices continue to be a major driver of retail wireless sales and profits, and we anticipate a strong finish to our year."
Retail Division sales of mobile phone products and services were $74.5 million for the quarter, compared to $81.1 million for the same period in 2008. The company attributed part of the decrease to a reduction of promotional funds which drive sales, and a reduction of “certain hardware subsidies which changed the retail value proposition to consumers”, the company said in the release.
Business Division sales of terrestrial narrowband and broadband radio systems, satellite network services, and implementation services were $7.39 million for quarter, compared to $9.49 million last year, which Glentel attributed to the continued weakness in the oil and gas economy.
