|[February 11, 2014]
Telio Holding ASA: Strong 4th Quarter Concluded a Successful Year for Telio
OSLO, Norway --(Business Wire)--
Telio (OSE:TELIO) concluded 2013 with a strong fourth quarter both in
terms of revenues and profitability. Revenues for Telio Group in the
fourth quarter ended at NOK 327.7 million and EBITDA was NOK 73.9
million. For the year 2013 revenues ended at NOK 1.247 billion and
EBITDA at NOK 270.3 million.
- 2013 has been a very successful year for Telio with the acquisition of
NextGenTel (News - Alert) early in the year as the most significant event in the
history of the company. The fourth quarter is evidence of a successful
turnaround for NextGenTel. The Telio Group is now well positioned to
achieve its financial targets for 2014 and the years ahead, says Eirik
Lunde, CEO of Telio Holding ASA.
EBITDA for Telio Group was NOK 73.9 million and EBIT was NOK 32.8
million (EBIT adjusted for amortization costs of NOK 11.4 million
related to the acquisition of NextGenTel AS).
NextGenTel has continued the positive development during the fourth
quarter and the financial performance is ahead of plan. The company has
100 less FTEs at the end of the fourth quarter than at the transaction
date. A cost control program has been established and significant
savings have been achieved both in operating expenses and capital
expenditures compared to the same period last year.
After quarter-end, NextGenTel announced a contract with TeliaSonera (News - Alert) to
deliver fiber to TeliaSonera's locations in Norway, including the NetCom
shops. With this contract, NextGenTel further strengthens its position
within the retail stores segment. The company currently provides
broadband accesses to twenty thousand businesses making NextGenTel one
of the largest players within broadband to retail stores and other
enterprises in Norway.
New contract in the Netherlands
After quarter-end, Telio announceda new contract to provide VoIP
services to M7 customers in the Netherlands. M7 operates in the
Netherlands with a.o. the brand Canal Digitaal. During 2014, Telio
Netherlands will start providing all VoIP services for their Dutch
customers. This includes the migration of the voice services of all
existing customers (currently approximately 145,000 customers). An
intention has been expressed by both M7 and Telio to also look into
providing VoIP services to other M7 customers across Europe.
Strong cash flow
The Telio Group has generated a free cash flow representing NOK 5.82 per
share in 2013. Net interest bearing debt is reduced from NOK 347 million
at 31 March to NOK 257 million as of 31 December 2013. The sale of the
NextGenTel office building was completed 31 December 2013 and brought
NOK 95 million in additional cash to the company in January 2014.
The bondholders' meeting held on 5 February 2014 voted in favor of the
company's proposal for an early redemption of the bond. The NOK 300
million bond will be repaid at 109.50% of par value. The company has
agreed on new loan facilities with Nordea. The new financing comprises a
five year term loan of NOK 250 million and a NOK 75 million overdraft
facility, replacing the current bank loan of NOK 175 million. The
reduced financial expenses following the new loan facilities will offset
the call premium for the bond within approximately 24 months and the new
financing reduces financial expenses by approximately 60% (NOK 56
million) over the loan term. Altogether, this financial restructuring
including less strict financial covenants makes it possible for Telio to
pay dividend already in 2014 based on the 2013 annual accounts.
In the fourth quarter 2013, the Telio Group achieved revenues of NOK
327.7 million compared to NOK 110.6 million in the year-ago quarter.
EBITDA was NOK 73.9 million (22.5% EBITDA margin) compared to NOK 9.5
million (8.6 % EBITDA margin) in the same quarter last year. Operating
profit ended at NOK 32.8 million compared to NOK 4.6 million in the
fourth quarter of 2012 (EBITDA and operating profit are adjusted for
non-recurring items and EBIT is adjusted for amortization cost related
to the acquisition of NextGenTel).
See financial report and market presentation for Q4 2013 at:
Download high definition pictures of CEO Eirik Lunde at http://telioholding.no/News-and-media/Logos-and-pictures
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