TORONTO – Telehop is back in the black after recording second quarter results that are EBITDA and operating income positive.
The long distance provider said net income for the period ended June 30 was $15,312, compared to a $149,901 loss year-over-year. EBITDA increased to $27,149 from negative $141,760, while operating income was $5,210 versus an operating loss of $178,929 during the same period last year.
Revenues dropped 9.9% to $2.4 million from $2.7 million last year driven by declines mainly in lower margin and credit challenged wholesale services, while retail revenues declined 4.4% as a result of increased credit requirements for new customers along with decrease in subscription services. To combat this decline, the company said that it has re-priced its home phone offering to a simple three tier plan offering unlimited calling.
In addition, Telehop said that it is focused on increasing gross margins, specifically on the retail revenue, reducing low margin wholesale customers, and tightening credit requirements to the entire installed base. It expects continued performance improvements thanks to its new, sophisticated marketing database designed to gain further customer insights and drive programs to increase the average revenue per user and reduce churn.
"We are beginning to see a return on our efforts over the past year," said president and CEO Rajiv Jagota, in a statement. "The structure and programs are now in place for us to move ahead on a constructive footing. We look forward to making further progress as we execute on our plan for growth."
