Teleunit Share Discussion Threads

[xenawarriorprincess] 22/9/2005 18:02

Could be something doing here - 2.5M cross trades at mid price of 26p and were up a penny!

Need to break through 28.5p to establish a fresh high, but not too far to go now.

[vickenk] 20/9/2005 11:41

A non-exec Director just bought 500,000 shares @24.5p, surely this will get investor's attention.

[salpara111] 19/9/2005 15:52

Well I have been holding for about 9 months and am currently sitting on a small loss and would have to say that I have really very dissappointed with the results and as such I will be offloading my stock
I fail to see how you can increase your turnover by 60% and have a substantial fall in your operating profits, if you strip out financing then they dropped from 2.6M to 1.95M
I have read through the results several times now and all I can see are positives everywhere except for the profit figure, am I missing something?

[ukhawk] 19/9/2005 13:27

The problem here is they are exactly as expected. I don't think there's anything to grab the attention of a wider market, and not sure what it would take to do that.

[cmp2] 19/9/2005 08:20

very positive indeed...as expected to be honest.
let's hope this prompts a rise in the share price...at long last!

[cestnous] 19/9/2005 08:00

Seems fine to me ;

Teleunit S.p.A
19 September 2005


Press Release September 19th 2005



Teleunit SpA



Interim Results for six months ended 30 June 2005



Teleunit SpA ("Teleunit" or "the Company"), a provider of fixed line telephony,
wireless broadband, international calling cards, premium access numbers, content
for mobile and wholesale services in Italy, today announces its Interim Results
for the six months ended 30 June 2005.



Financial Highlights

* Turnover up 60.8% to Euro40.1 million (H1 2004: Euro25.0 million)
* Positive operating cash flow of Euro3.2 million (H1 2004: Euro(3,9) million)
* Cash and cash equivalents of Euro10.7 million (H1 2004: Euro8.1 million)
* Profit Before Tax Euro2.5 million (H1 2004: Euro2.6 million)
* Outlook on track to meet market expectations for full year 2005



Operational Highlights

* Wireless Local Loop: Tuscany infrastructure now operational leading to a
doubling of the customer base in the last six months.
* Premium Access: Turnover up 92% compared with H1 2004 due to strong customer
retention as well as growth through the acquisition of new customers.
* Pre-paid and Wholesale: Solid improvement in Gross Margin to 21% as a result
of the strategy of direct carrier to carrier agreements.
* Fixed Line: Strong customer loyalty evidenced, and successful introduction
of ADSL VoIP technology.
* 5 Digit SMS: Subscribers have exceeded 100,000 in initial launch period,
with monthly growth of approximately 30 per cent.
* New Opportunities: 5 Digit SMS customers will be given the possibility of
subscribing to the service not only from their cell phones but also from
their fixed-line phones. This development is expected to significantly
boost this market. In the Fixed Line division, ADSL VoIP is expected to
generate significant new sales and increased Gross Margins. Finally,
Teleunit will launch a new software-based service downloadable from the
Internet, that will enable calls to and from anywhere in the world from the
user's PC.




Commenting on the results, Francesco Cimica, Chief Executive Officer of
Teleunit, said:



"These results demonstrate a performance in line with market guidance. In
particular, we are delighted with the strong performance in Premium Access and
very positive sales test of ADSL VoIP services. New pioneering technologies will
drive revenues in the future and we see continuing growth opportunities in our
existing markets.



We have further strengthened the management team, delivered strong results
across our business units and become one of the leading players in Premium
Access. We look forward to continued success for the Company and its
shareholders."





Contacts:


Teleunit SpA

Francesco Cimica Tel for 19 - 21 September 2005

[e-mail] [phone]

Daniel Stewart
Tom Jenkins/Ruari McGirr Tel: [phone]



Media enquiries:


Abchurch Communications Limited

Heather Salmond / Margaret Strinati Tel: [phone]
[e-mail] www.abchurch-group.com








CHIEF EXECUTIVE'S REVIEW



Introduction



For the six months to 30 June 2005, we have continued rapidly to increase both
turnover and gross profit. We have been successful in further penetrating the
markets in which we are operating and, at the same time, have created a solid
foundation in new sectors, including 5 Digit SMS and ADSL VoIP. The Board is
confident that these new markets will deliver further increases in turnover and
subsequent net profits by the end of this calendar year.



During the first half of the year, we have consolidated the Company's management
structure, adding to the experience and skill of the executive team, with the
aim of continuously improving the Company's ability to compete and to exploit
the business opportunities in the market.



The results obtained in the first half, and trading since the half-year end,
make us confident that we will meet market expectations for the 12 months ended
31 December 2005.



Wireless Local Loop (WLL)



Despite delays on the part of the Ministry of Communications in publishing the
tender for the award of new WLL frequencies, the Company has succeeded in
activating the seven base stations previously installed in Tuscany. Expenditure
has amounted to approximately half of that which was originally budgeted in
2003. The Tuscany region represents a stronger market opportunity for TLU owing
to larger communities and larger average business sizes in the area.



Teleunit has grown the number of WLL customers to approximately 400 at 30 June
2005 and the growth in turnover to Euro0.77 million already exceeds that achieved
during the whole of 2004. This solid performance is consistent with the targets
for the full year 2005.



The Company's primary strategic focus remains developing Teleunit's proprietary
radio-wave telecommunications network. Over the coming months, following
current testing of Wi-Max in Italy, and its availability and cost analysis, we
will be able to define the best technology to be adopted.



Premium Access



In the first half, turnover grew by 92% reaching over Euro32 million. This growth
has been due to several new important customers and to the loyalty of existing
customers. In order to further increase performance in the premium access
division, we have continued with our strategy of diversification by acquiring
several small service centres active in the voice sector in this market.



The price capping introduced in 2003 by the Telecommunications Authority has now
been absorbed by the market and the Company has consolidated its position as a
leading participant.



Excellent results were also achieved from the acquisition in June 2004 of a 30%
stake in Starline. We expect Starline to deliver earnings to cover the cost of
the acquisition by the end of this calendar year.



Pre-paid Services and Wholesale



The Wholesale division, which was launched last year, has taken over the
responsibility of the original Pre-paid Services division. Its role is to
develop new growth opportunities for the future.



In the first half, the Wholesale division contributed approximately Euro2.4 million
of revenue with a margin of 21 per cent. This profitability exceeds that of the
previous half year, as a result of a policy based more on quality of service
than on volumes. An example of this policy includes a direct carrier to carrier
agreement with Albania OnLine, whereby 50% of the traffic to that country now
flows through Teleunits' networks. Other carrier to carrier opportunities are
currently being assessed by the Wholesale divisions' management.



The Wholesale market will also benefit considerably from the important technical
innovations that Teleunit is currently implementing. These innovations include
new switching technology, a new intelligent network and new Wholesale Management
systems. We are confident that Teleunit will gain a sizeable market share in
this sector.



Fixed Line



Continuing loyalty amongst our active customer base using normal CPS (Carrier
Pre-Selection) services, has sustained sales of over Euro4.0 million, in line with
that achieved for the corresponding period in the last financial year.



We have taken the opportunity to implement a sales test, over a period of
approximately 4 months, for telephony and data services based on ADSL VoIP
technology. The results of this test confirm very strong interest in this new
technology throughout the market from both sales networks and final customers.
ADSL VoIP enables customers to have a single telephony and data provider, whilst
at the same time enabling Teleunit to increase profit margins due to the lower
cost of acquiring calls via ADSL. This will also enable Teleunit to increase its
average sales per customer and to further develop customer loyalty.



The strong demand for this new service has led to the Company obtaining over
2,000 contracts in these 4 test months. This figure was attained without
aggressive marketing and, the Directors believe, confirms the soundness and the
validity of the ADSL VoIP proposition.



We believe ADSL VoIP is a natural evolution of Fixed Line services for Teleunit
in the near future. An important and successful sales convention in September
2005 has marked the launch of ADSL VoIP services throughout Italy.



5 Digit SMS



For the six months to 30 June 2005 we achieved turnover in excess of Euro0.75
million with a high gross margin of 55 per cent. The 5 Digit division achieved
significant growth in this period. At the beginning of 2005, we had 20,000
subscribers, increasing to 100,000 before the end of the half year and to
150,000 only two months later. This increase in the number of subscribers
represents over 30% growth month on month. The simultaneous improved performance
of our advertising investments has also made it possible to increase the ARPU as
a consequence of the increase in length of the subscription period up to 12
weeks. The Company is continuing to focus on developing this market, which has
proved to be one of the most reactive and fast-growing markets, not only in
Italy but also worldwide.



New Opportunities



A new opportunity for the 5 Digits sector arises from the ability of a
subscriber to receive content on his mobile phone from a Telecom Italia fixed
phone; the fixed phone then gets billed for the content. Together with the
increasing development of "True Tones", this will act as an ongoing boost for
the 5 Digit market.



In addition to ADSL VoIP, Teleunit also aims to exploit the growing residential
VoIP market and intends to expand throughout Italy and subsequently globally.
With this in mind, a new PC based VoIP service will be launched in the second
half of the year. This service is based on a software application downloaded
free of charge from the Internet. The product enables customers to telephone
from one PC to another via the Internet at no charge, and at very low cost from
a PC to any land or mobile line worldwide. We anticipate that the integration of
this service with our ADSL VoIP offering will make this a viable worldwide
application.



Appointment of new COO



On 16 June 2005, Teleunit announced the appointment of Mr. Ezio Peri as Chief
Operating Officer. Mr. Peri brings over twenty years' operational
telecommunications, information technology and electronic engineering experience
at Board level in blue-chip businesses including Telecom Italia Mobile, Sun
Microsystems, Olivetti Research, Delphi SpA, Nodalis and H3G SpA. At H3G, Mr.
Peri was Business Sales Director and prior to that he was a Director in the
Commercial Department of Nodalis. From 1998 until 2000, Mr. Peri was Vice
President of Business Marketing at Telecom Italia Mobile.



The Directors are delighted with the significant input Mr. Peri has already made
to Teleunit and the speed at which he has integrated with the Company to help
further develop our offering. Mr. Peri will be key for the launch of ADSL VoIP
services.



Outlook



Given the results achieved for the six months ended 30 June 2005, and the
continued development of the business in the first two months of the current
half year, we remain very confident that we will meet market expectations for
2005.





Francesco Cimica, Chief Executive Officer

Teleunit SpA







INCOME STATEMENT

For the six months ended 30 June 2005


Note Six months ended Six months ended Year ended 31
in thousands of euro 30 June 2005 30 June 2004 December 2004

Revenue 1 40,113 24,953 60,767

Cost of sales (32,286) (18,780) (47,198)


Gross profit 1 7,827 6,173 13,569

Administrative expenses (948) (796) (1,460)

Sales and marketing expenses (2,714) (1,537) (3,721)

Other net operating expenses (2,190) (1,258) (1,794)


Total operating expense (5,852) (3,591) (6,975)

Profit from operations 1,975 2,582 6,594

Net financing income (expenses) 562 1 (960)


Profit before tax 2,537 2,583 5,634

Income tax expense 2 (719) (520) (830)

Net profit for the period 1,818 2,063 4,804


Basic earnings per share (euro) 3 0.0097 0.01414 0.0289

Diluted earnings per share (euro) 3 0.0096 0.01413 0.0288

[xenawarriorprincess] 16/9/2005 17:55

Oh ye of little faith flintsurfer!

Everyones faith will be rewarded.

Money talks - and the price will move - upwards that is!

[flintsurfer] 16/9/2005 01:33

Alledgedly they are very good
BUT they have been before and that makes no odds to the price!

[enewman36] 15/9/2005 11:07

There weren't many yesterday and it took a bit of a hit!!

[ukhawk] 15/9/2005 10:33

Official confirmation of results monday, and not one trade......hmmmm.

[johnymac] 10/9/2005 02:56

I cannot be bothered reading the posts.
But alll I can say is David Lee (Tadpole chairman) is involved in this company
and he has proved himslef to be a CAD.
Be very very carefull.

[czar] 09/9/2005 03:13

Still in, topped up a little last week, looked at the numbers again and feel sure this will re-rate to at least 15x soon, currently only 6x next year earnings.

[ukhawk] 08/9/2005 16:36

65k buy and it ticked up again.

[tole] 08/9/2005 16:13

Excellent - a week monday then :)

[ukhawk] 08/9/2005 16:09

Daniel Stewart.

[tole] 08/9/2005 16:02

Looks that way doesnt it, did wonder if there was a large buyer in the background.
Anyway where did you get the interim date from ukhawk?

[ukhawk] 08/9/2005 15:23

Still only buy 3.75k online, sell 75k.

Mm's short of stock or know how good the results are ?

[ukhawk] 08/9/2005 11:52

Interims will be announced 19 Sept.

[xenawarriorprincess] 07/9/2005 20:22

My Italian may be poor, if not terrible, but it looks as if Teleunit are on something of a recruitment drive:-

6 "technicians" wanted 31/8/05



12 (I assume) call centre staff 30/8/05



Unless somebody who actually knows Italian can enlighten us further.

[ukhawk] 07/9/2005 14:12

As mentioned a few posts back "september" is the most we know.

[cmp2] 07/9/2005 14:03

does anyone know when interims are out?
I have a feeling that they will be very positive. Recent advance of price has been the first in months....surprising given the excellent value this share represents!

[ukhawk] 07/9/2005 13:14

Not even a large amount either. Can still only get 3.75k online.

[tole] 07/9/2005 13:12

36k at half penny premium...

[cockneyrebel] 07/9/2005 13:00

yes, woke me up!

CR

[ukhawk] 07/9/2005 12:58

Yep, moving up nicely but no RNS yet for the interims date.Although the last RNS said "september", a firm date would be helpful.