BURNABY, B.C. – “The quarter proved to be a concentrated focus on relationship management for Glentel,” said Tom Skidmore, the company’s president and CEO in describing his company’s Q2 as “solid.”
"Leveraging the relationships which it has with its partners, the wireless retailer and services company was able to generate $372.4 million in revenues in the quarter ended June 30, 2014, a 16% increase over the same period in 2013.
This increase in revenues is attributable to many factors, and many partners, both in Canada and the U.S., and abroad,” says the press release. The Retail Canada Division increased its store count by three locations, operating 270 corporate and 217 retail managed services (under brands such as Wireless Wave and Tbooth) locations at quarter end.
"Glentel continues to be excited about its partnerships with Costco, Target, and Samsung. Glentel and Costco Wholesale Canada have worked together since 2005, with Wireless Etc. being Glentel's first foray into the Retail Managed Services space,” added Skidmore, in the release.
“As the partnerships we have in place continue to mature, we see much opportunity for increased profitability while providing the Canadian wireless consumer with options from both a brand and distribution perspective, and also from a wireless carrier perspective."
Glentel now has a total of 487 retail stores in major shopping malls and high-pedestrian-traffic locations, MacStation stores, Target retail stores, and Costco Warehouses in Canada, compared to 388 stores in 2013.
In the U.S., both Diamond Wireless and Wireless Zone renewed their respective carrier contracts with Verizon Wireless. “Both Diamond Wireless and Wireless Zone continue to be accretive to Glentel's overall earnings, and we continue to see the U.S. market as a significant growth market for the Company,” added Skidmore.
"In Australia, AMT continues to develop its relationship with its main carrier partner, Vodafone. Over the past year, the relationship between AMT and Vodafone has continued to develop, with Allphones in Australia selling the Vodafone brand as its marque offering. With its new 4G/LTE network, Vodafone is aggressively pursuing new customers, and AMT views this relationship as a significant growth opportunity for both Vodafone and the Allphones brand in Australia. Through its relationships in Australia, AMT was able to develop a Retail Managed Services agreement with Globe Telecom and Tao Corporation in the Philippines, and at June 30, 2014 operated 60 Allphones locations in the Philippines, under the Allphones brand. Glentel continues to view the Asia Pacific market as a significant growth opportunity for the Allphones brand and will continue to further develop, and create relationships with partners in that region,” reads the release.
However, in the second quarter of 2014, Optus advised the company’s Australian division that it would be exercising its right to terminate its agreement for the management of its 45 corporate Virgin Mobile branded stores as of the fourth quarter of 2014. The termination of this management contract has resulted in a non-cash accounting impairment of $25 million, $20 million net of tax, says the release
While sales increased, EBITDA decreased 3% to $11.6 million compared to $11.9 million in Q2 2013. Net loss for the period was $15 million, compared to net income of $5.4 in 2013, due to the impairment charge.
