BURNABY – If you needed any further confirmation that the wireless industry is still growing at a rapid pace, retailer Glentel provided more with its annual results published this week.
The retailer (which operates WirelessWave and The Telephone Booth) posted revenues of $146 million in 2005, an increase of 51% over 2004. Operating income before interest and taxes increased 35% to $8.9 million and consolidated net income for the year increased 48% to $6.1 million.
Growth in sales and net income was the result of growing both organically and through acquisitions in 2005, said the company. In its retail division, sales grew 65% to $118.3 million as WirelessWave opened nine new stores during the year, bringing the total to 95 retail mall-based stores operating in British Columbia, Alberta, Manitoba and Ontario.
During the year, Cabtel Corporation (The Telephone Booth/La Cabine Téléphonique) was acquired, adding 49 retail mall-based stores operating in Québec, Ontario and Alberta. During the 4th quarter, Glentel launched a pilot project of a store-in-store concept, WIRELESS etc…, opening three kiosks with a national big-box retailer. In WirelessWave, same-store cellular phones and other wireless devices sold grew 17% in the fourth quarter and finished the year with an annual increase of 3% for stores that were opened throughout both the 2005 and 2004 fiscal years.
In the Business Division, sales grew 11% during 2005 to $27.7 million, reflecting growth in sales and an acquisition. Economic confidence, specifically in the oil and gas industry in Alberta and northern B.C., has positively impacted the division’s integrated solution sales and service revenues, says the company. In addition, the recent acquisition of the Remote Telecom business unit from Wireless Matrix Corporation, and the successful integration of this acquisition, provided strong growth in the satellite solutions segment.
Consolidated sales for Q4, ended December 31, 2004 increased 68% to $51.3 million. Operating income before interest and taxes in the quarter was $3.4 million, compared to the 4th quarter of 2004 of $2.8 million. Consolidated net income was $3 million, compared to $1.8 million during the same quarter last year.
