BURNABY – Canada’s changing wireless business helped to pull down second quarter profits at Glentel by more than $1 million.
The multi-carrier mobile phone retailer reported net income of $5.0 million for the period ended June 30, down from $6.12 million in the same quarter last year. Consolidated sales were $144.7 million, up 5% year-over-year from $138.0 million.
Sales of retail mobile phone products and services in its Retail Canada Division dropped 4% to $86.5 million from $90.1 million in the prior year, which the company attributed to consumers shifting their allegiance from “the premium wireless brands to the fighter brands or secondary brands” resulting in lower plan contracts than in the past.
The company’s U.S. division saw sales jump 28% to $50.7 million from $39.5 million in the second quarter of 2011. Its business division sales of terrestrial narrowband and broadband radio systems, satellite network services, and implementation services fell 11% to $7.5 million from $8.4 million.
"The company produced solid earnings in the 2nd quarter despite a challenging sales quarter in the Retail Canada Division," said president and CEO Thomas Skidmore, in a statement. “The Retail Canada Division had lower sales but delivered operating income comparable to the 2nd quarter in 2011.
“The Retail U.S. Division continues to increase overall sales and to increase store expansion; it acquired 12 stores in the Seattle and Portland areas in the 2nd quarter, as well as 6 stores in Northern California in the 1st quarter. We are looking forward to the 3rd and 4th quarters, which are traditionally the Company's two strongest quarters with the back-to-school and holiday selling seasons."
