BURNABY – Thanks to wireless industry growth and a major acquisition in 2005, the revenue line at the company which owns WirelessWave, The Telephone Booth and La Cabine Téléphonique has grown dramatically.
Glentel Inc. reported that sales for the second quarter of 2006, ended June 30th, increased 46%, to $43.6 million compared to the same period of 2005. However, due to an extensive rebranding campaign at The Telephone Booth and its French counterpart, operating income before interest and taxes was just $1.7 million in the quarter, compared to $2.4 million in Q2 ’05.
Sales for the six months ended June 30, 2006 increased 53%, to $81.7 million in Q2 2006. Operating income before interest and taxes was $1.7 million, down almost a million compared to $2.75 million in 2005.
Retail division sales of retail cellular products and services grew 56%, in the quarter to $35.5 million. Growth in sales was primarily due to the opening of new stores and the 49 acquired when it bought The Telephone Booth in 2005.
The company now runs 153 retail stores.
The number of same-store cellular phones and other wireless devices sold by WirelessWave grew 28% in the second quarter.
"While sales increased significantly, operating income before interest and taxes for the division was $2.9 million for the second quarter compared to $3.5 million the same period the previous year," says the release. "During the quarter, the retail division’s operational team spent considerable time on re-branding and development of The Telephone Booth/La Cabine Téléphonique. This valuable redirection of the management team enables the division to put The Telephone Booth/La Cabine Téléphonique on a solid footing for the two upcoming historically strong quarters. We are pleased with the progress of the turnaround; however, it is not complete and there is considerable progress yet to be achieved."
Business division sales of terrestrial radio systems, satellite network services, advanced mobile solutions, and service/engineering support grew 14%, to $8.2 million for the 2nd quarter compared to $7.2 million in the quarter in 2005.
"With the re-engineering of the retail division well underway, management is satisfied that it has been prudent in foregoing short-term profit gains in this quarter so that it might shore up its key profit zones for future strong selling seasons in its three retail brands: WirelessWave, TBooth, and Wireless etc.," said Thomas Skidmore, Glentel’s president and CEO.
"Profit stability and normal profit levels in this division are expected to be restored in the third quarter."
