TORONTO – Calling 2011 a year of “challenges and changes”, Telehop recorded a net loss of $1.33 million for the 12 month period.
The long distance provider saw revenue fall 12% to $10.4 million in 2011, from $11.8 million in 2010, which it said was driven by declines in casual calling and wholesale services, which were partially offset by growth(in its subscription and prepaid calling cards products. Casual calling revenue was lower year over year due to the shift in customer pattern from using traditional landline services to using wireless services and online long distance competitors such as Skype.
EBITDA dropped to negative $750,000 from $99,396 in 2010. Gross margin was $4.3 million compared to $5.1 million in 2010, and dipped to 42% from 43% as a percentage of revenue.
Looking ahead, Telehop said that subscription revenue will continue to be the “driving force” for next year's earnings with more product choices and features, price plans, and marketing initiatives geared towards subscriber acquisition and retention.
