TORONTO – Telehop Communications, providers of cut-rate "dial-around" long distance numbers like 10-10-620, reported first quarter revenue for the three months ended March 31st of just over $5 million an increase of approximately 6.7% compared to the first quarter of 2005.
Net income for the three months ended March 31, 2006 was $262,903, an increase of 138.6%. In addition to the increased revenues, the gross margin increased as a result of lower telecommunication costs and a slight drop in marketing expenses as a percentage of revenues. The Company has continued to focus its marketing efforts on the higher margin retail market and also on its efforts to acquire more direct dial subscription customers.
Earnings before interest, taxes, depreciation and amortization (EBITDA) was $529,692 in Q1 2006, an 86.5% increase over $284,056 in Q1 2005.
"We intend to continue with our strategy of targeting the repeat retail subscription customer whilst maintaining and improving on our proven expertise in marketing to our ethnic niche markets," said president and C.O.O., Ruth Bartholomeusz. "We believe that this strategy has already resulted in better results for our shareholders. We will strive to continue to grow our core long-distance business along with other value-added services to generate increased value for our shareholders."
