Financial results 2nd quarter 2008

SOURCE:

Telio Holding ASA

2008-08-14 01:52:00

OSLO, NORWAY–(EMWNews – August 14, 2008) – Telio again reports strongest profits ever

with an EBIT of NOK 20.2

million in Q2 08. Revenues were NOK 96.7 million, an increase of 7%

compared to Q2 07. EBITDA margin was 31%.

Profits were the strongest ever for the company with an EBIT of NOK

20.2 million compared to NOK 3 million in Q2 07 and NOK 12 million in

Q1 08. Profit before tax was NOK 20.6 million.

The Telio Group added net 2,972 VoIP customers in the second quarter

including 1,600 lines in the SMB market.

Sale to the business market is picking up and currently Telio has

above 3,000 lines in this segment in Norway. The product offers a

competitive value proposition with a monthly subscription fee of NOK

159 with a start up fee of NOK 0.39. Call charges are similar to the

consumer product with zero costs to Western Europe, Poland, North

America (incl. mobile), and China.

Financials

Total gross profit in Q2 08 was NOK 59 million (61% margin) compared

to NOK 52.1 million (57.6% margin) in Q2 07.

Average monthly revenue per customer (VoIP Norway) during Q2 08 was

NOK 261, the same as in the previous quarter. Average monthly gross

profit per customer for Norwegian VoIP customers was NOK 171 during

the quarter compared to NOK 168 in the previous quarter.

Salaries and personnel costs were NOK 9.3 million in Q2 08 (10% of

revenues) including NOK 0.5 million related to the stock option

plans. Salaries and personnel costs for the quarter are positively

affected by the vacation payment regime in Norway. In addition, the

company capitalized NOK 0.8 million in development costs during the

quarter. Selling and marketing costs were NOK 8.6 million in Q2 08

(9% of revenues). The company capitalized customer acquisition costs

of NOK 1.0 million during the quarter.

Operating profit was NOK 20.2 million in Q2 08 and profit before tax

was NOK 20.6 million. Cash flow from operations was NOK 29.6 million

in the quarter.

Cash and cash equivalents were NOK 97.4 million at 30 June.

Consolidated equity was NOK 81.8 million (equity ratio of 36%)

compared to NOK 65.9 million (31%) at the end of Q1 08.

Deferred revenues (current liabilities) decreased by NOK 2.9 million

during the quarter. Deferred income at the end of Q2 08 was NOK 42.6

million of which NOK 25 million has been collected and is

non-refundable. Total financial lease debt was NOK 15.6 million at

the end of the quarter which is NOK 2.4 million below the end of the

previous quarter (NOK 18 million). Of the total financial lease debt,

NOK 13.5 million was classified as current liabilities (payable

within one year from the balance sheet date).

The Telio Group had 100 employees (FTE) at 30 June 2008.

See attachments for complete report for 1st half/2nd quarter and

presentation.

http://hugin.info/136135/R/1243346/267778.pdf

http://hugin.info/136135/R/1243346/267776.pdf

Copyright © Hugin AS 2008. All rights reserved.

Investor Relations
Tom Nøttveit
Chief Financial Officer
Telephone: +47 4153 9714
Email address:

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