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MediaRing 1H 2004 revenue grows 89% to S$39.5 million |
• Volume of VoIP call traffic up by 90% to 282 million minutes
• Existing revenue streams expected to continue growing with further improvement in financials
Singapore, August 12, 2004:- Mainboard-listed MediaRing Limited (“MediaRing”), the leader of independent VoIP telephony service providers in Asia, today reported sharply improved financial performance for the six months ended 30 June 2004.
Key financial highlights for the interim period of 1H 2004 compared to 1H 2003 include:
• 89 % increase in revenue to S$39.5 million from S$20.9 million;
• 71% reduction in net loss to S$1.1 million from S$3.8 million;
• Marginal 5% increase in operating expenses before selling & marketing expenses to S$11.6 million from S$11.1 million; and
• 80% increase in gross profit to S$19.1 million from S$10.6 million.
Commenting on the half-year results, Mr Khaw Kheng Joo, Chief Executive Officer of MediaRing, said, “We continued to achieve strong revenue growth in our VoIP operations comprising both PC-to-Phone retail services and Carrier Operations, especially in markets such as the Middle East and Indochina.
“At the same time, we expanded our marketing and distribution network to more than 950 resellers and partners in more than 90 countries,” Mr Khaw added.
During the interim period under review, volume of total call traffic rose by 70% to 304.9 million minutes, generating more than 50 million minutes of traffic a month from March 2004, of which VoIP call traffic accounted for more than 90%. In line with this rise in VoIP traffic volume, the Group further strengthened its global points of presence (“POP”) with the addition of a POP in New York.
Growth in Carrier Operations was supported by securing more Tier-One telecommunications customers in our Technology Licensing business and by increasing traffic volume from the trading of wholesale VoIP traffic minutes.
During the period, all categories of expenses increased except depreciation. “This was due to a change in sales mix and increased sales activities, resulting in corresponding increases in costs associated with sales such as direct services fees and selling & marketing expenses,” Mr Khaw explained. “However, staff costs and infrastructure costs increased only marginally by 0.4% and 1.2% respectively.”
The Group recorded an exchange gain of S$176K in 1st half 2004, up 193% compared to the same period last year, on the back of stronger US$ currency.
Outlook
With global VoIP traffic continuing to show significant growth and the rising acceptance of this technology by leaders in the telecommunications industry, MediaRing’s core business of providing VoIP services is expected to grow in tandem.
“MediaRing is well positioned to capitalise on this growth. We have made significant progress in gaining share of global VoIP traffic in the last two years,” says Mr Khaw. “In revenue terms, MediaRing is now the leader among pure-play VoIP telephony service providers in Asia and is a recognised brand name in the industry. We plan to leverage on this competitive advantage to further expand our Internet Telephony business.”
Barring any unforeseen circumstances, the Group believes it will be able to continue growing existing revenue streams and further improve financial performance in 2004.
About MediaRing
With offices in Singapore, Malaysia, Shanghai, Beijing, Hong Kong, Taiwan, Japan and Sunnyvale (USA), MediaRing is the leading VoIP telephony service provider in Asia and enjoys a significant share of the global pure-play VoIP market. Through its strong technological capabilities and extensive distribution network, MediaRing brings high-quality voice services to carriers, enterprises, service providers, and consumers with its wide range of service offerings. Its extensive partnerships with carriers around the world allow call terminations in more than 240 countries worldwide. As a pioneer in VoIP services with unique proprietary technology, MediaRing derives more than 90 per cent of its revenue from outside Singapore.
Public Relations Contact
For further information please contact:
August Consulting
Tel: 6733 8873 Fax: 6733 9913
Silvia HENG- silvia@august.com.sg
Lynn Ll- lynn@august.com.sg
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