TORONTO – National network service provider TeraGo recorded $12.6 million in revenue for the first quarter of 2013, an increase of 5% over the same period last year.
The company attributed the increase to recurring service revenue, with more customer locations in service as well as existing customers upgrading their Internet and data connections. First quarter profit increased to $1.3 million compared to $0.2 million in the same period a year earlier.
TeraGo added 233 new customer additions in Q1 2013, which was 33 fewer the same period in 2012. The quarter ended with 6,581 customer locations in service, a 3.6% growth over the 6,351 customer locations in service at March 31, 2012. Earnings before interest, tax, depreciation and amortization (EBITDA) for the first quarter of 2013 was $4.3 million, a 29% increase over the $3.4 million reported in Q12012. The company’s gross profit margin for Q12013 increased slightly to 78% from 77.2% for the same period in 2012.
Average monthly revenue per customer location, or ARPU, increased to $624 in the first quarter of 2013, compared with $619 for the same period in 2012. TeraGo said the increase was a result of a combination of service capacity upgrades by existing customers, a higher proportion of new customers choosing higher capacity services or voice services, early termination fees, and lower credits partially offset by lower usage revenue.
In a prepared statement, Bryan Boyd, TeraGo president and CEO said, “We continue to grow, achieving further strong performances in revenue, EBITDA, earnings and other measures in the first quarter of 2013. We are confident this momentum, combined with our new enhanced strategic plan announced in April, will allow us to accelerate our growth, continue to deliver outstanding results and create value for our shareholders.”
TeraGo also announced the departure of CFO Scott Browne today. Bosco Chan has been appointed interim CFO while the search for a full-time replacement is underway.
