BURNABY, B.C. – Consumer demand for smart phone technology coupled with more choices in mobile phone devices helped to drive up Glentel’s consolidated sales by 7% for 2009.
Sales for the year ended December 31, 2009 were $308 million compared to $289 million for 2008. Operating income before impairment of goodwill, interest and taxes grew 19% to $24.5 million compared to $20.6 million last year. Consolidated net income was $15.95 million compared to $9.52 million in 2008 (or $14.14 million before a goodwill impairment write-down last year).
“I am pleased with the growing success of Glentel and its operating results, in spite of a weak economy in 2009 and the competitive pressures evidenced in the Canadian mobile phone marketplace," said president and CEO Thomas Skidmore, in a statement. "Our Retail Division continued to expand its footprint and refresh its brands, while our Business Division took action on its cost structure with a realigned national sales focus to deliver integrated business solutions."
Glentel’s retail division recorded a 9% increase in sales over 2008 and added 20 store locations. Same-store activations of mobile phones and other wireless devices sold during the year increased 6% over the previous year in stores that were open throughout both 2009 and 2008.
In its business division, sales of terrestrial narrowband and broadband radio systems, satellite network services, and implementation services were down 7% from the previous year, and gross margin dropped by 4% due to the challenges in the economy.
