BURNABY, BC – Strong worldwide sales drove up first quarter profits at independent multicarrier mobile phone retailer Glentel Inc.
Sales for the quarter ended March 31, 2014 increased 12% to $341.7 million, compared to $305.7 million in 2013, however EBITDA dropped 21% to $11.1 million from $14.0 million year-over-year. Net income was $3.7 million, up from $3.3 million last year, though consolidated adjusted net income fell to $2.3 million from $3.3 million in 2013.
At March 31, 2014, Glentel’s Retail Canada Division operated 484 retail stores in major shopping malls and high-pedestrian-traffic locations, MacStation stores, Target Canada retail stores, and Costco Warehouses in Canada, up from 361 stores in 2013. Sales in the first quarter grew 14% from $89.4 million in the first quarter of 2013 to $101.5 million.
At its Retail U.S. Division, Diamond Wireless sales increased from $61.1 million last year to $95.9 million primarily as a result of Diamond Wireless operating 154 retail stores in BJ's locations across 13 U.S. states. Despite a reduction in 11 Wireless Zone locations, sales grew from $103.2 million last year to $106.1 million. Wireless Zone's wholesale business had sales of $27.6 million for the first quarter of 2014, compared to $29.8 million year-over-year.
Internationally, its Retail Australia Division – AMT (Allphones) saw sales drop from $45.6 million last year to $31.6 million, primarily as a result of the Virgin Mobile Australia brand and the Optus brand exiting Allphones retail stores in 2013.
Sales at Glentel’s Business Division increased to $6.6 million, up from $6.3 million in the same period in 2013. The Division had a steady stream of revenues from small- to medium-sized projects as well as a few large projects, maintaining recurring revenues for airtime and maintenance agreements while continuing to see significant growth in recurring rental revenue. Recurring revenue from tower sites continues to decline as the Business Division continues to sell tower site assets.
President and CEO Thomas Skidmore said the company is optimistic for 2014 and views this year as “one of growth as we continue to reap the rewards of our 2013 global initiatives".
"The first quarter of 2014 saw Retail Canada Division sales increase by 14% and marked the first period where all 127 Target Mobile stores across Canada were operating”, Skidmore said in a statement. “We are excited about the opportunity to grow the mobile phone category within Target Canada stores and expect a solid sales performance with profitability for 2014."
