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TECNOTREE CORPORATION SHORT REPORT 1 JAN – 30 SEP 2018 (UNAUDITED)
Tecnotree is a global provider of IT solutions for the management of services, products, customers and revenue for Communications Service Providers. Tecnotree helps customers to monetise and transform their business towards a marketplace of digital services. Together with its customers, Tecnotree empowers people to self-serve, engage and take control of their own digital life
1 Adjusted operating result = operating result without one-time items.
2 adjusted result for the period = result for the period without one-time items.
With reference to the new guidelines on alternative performance measures issued by the European Securities and Markets Authority (ESMA), Tecnotree uses the alternative performance measures “adjusted operating result” and “adjusted result for the period”. These measures are defined in the footnote to the above table, and in the table “Income statement, Key figures” under the section “Result analysis”.
CEO Padma Ravichander: Encouraging recovery in all fronts
Third quarter of 2018 has been a quarter that has demonstrated encouraging results for Tecnotree indicating that the company is back on the right track. While Q1 in 2018 was one of our weakest quarters due to external factors, followed by a challenging Q2, the results of Q3 indicate that we have made a strong recovery in all fronts.
The revenue had seen a reduction in Q1 in 2018 mainly due to external factors, improved in Q2 in 2018 and has gained momentum in the latest quarter. The revenue for the third quarter stood at EUR 12.4 million, showing more than 25% increase over the previous quarter.
The company has strong belief that the profitability is the most important goal to achieve and is slowly but surely taking giant steps in that direction.
While the increase in revenue is definitely a welcome change, the company continues its strong focus on further reducing operating costs. Operating expenses during the review period were EUR 28.5 million, or EUR 6.9 million lower than in the comparison period (35.4). Further, the company is constantly looking for opportunities to optimize costs and has set a new and additional target of reducing operational costs by EUR 7 million in 2019, for which necessary actions are already being initiated.
On the segments for revenue, Latin America is showing reasonable growth, while the APAC and MEA have further potential to grow. Despite weak performance of the African economies, Tecnotree customers in Africa have continued to invest in our products. Many new orders were won in this quarter, the major ones being Nepal Telecom for Roaming Billing System, VAS platform to a new European customer and renewal of several support contracts in Iran and in Zimbabwe, among others.
On the delivery front, Mauritius Telecom went live with Selfcare powered by “Tecnotree My Life Dashboard”, a cutting edge, self-service platform for subscribers, which again demonstrates the technical capabilities of the company. We also launched “ManaMobile”, new innovative operations management mobile app that we believe is state-of-the-art capability in the hands of our customers to reduce their downtimes and operational costs. We continue to invest in our Digital BSS, which we believe brings very strong value to our customers, preparing them for 5G and their digital transformation journey.
On the management side, we are pleased to have in our Board four new directors, who are all well-known industry professionals and will be adding a huge value to the company.
We believe that with the unwarranted distractions are behind us and we are now poised for further growth in revenue, optimizations in costs and will work towards delivering great value and positive results to all our stakeholders.
Board of Directors
FURTHER INFORMATION Padma Ravichander, CEOtel. +97 156 414 1420 www.tecnotree.com
Tecnotree is a global provider of telecom IT solutions for the management of products, customers and revenue. Tecnotree helps Communications Service Providers to transform their business towards a marketplace of digital services. Tecnotree empowers service providers to monetize service bundles, provide personalized user experiences and augment value throughout the customer lifecycle. With around 600 telecom experts, Tecnotree serves around 90 service providers in around 70 countries. Tecnotree is listed on the main list of NASDAQ Helsinki with the trading code TEM1V.