JSE-listed telecommunications group TeleMasters reported a 29% revenue increase for the 2009 financial year, claiming its aggressive approach to the global recession has paid off.
The company's revenue increase of R52 million came of the back of a R1.97 million increase in employee costs, and this talent spend was complemented by an investment of R920 000 in next-generation digital equipment. This, the company says, was necessary to secure competitive advantage in an increasingly deregulated telecommunications industry.
During the year under review, TeleMasters increased gross profit by 13.8% and reported earnings per share of 34.29c. Return on equity was 63.1% and return on assets 37%. The company's net tangible asset value per share was up 37.4%.
“I believe our success lies not only in the numbers, but also in the company structure,” says CEO Mario Pretorius. “Obviously, strong returns are imperative for shareholders, but these can't come at the expense of long-term growth and structural integrity. Our success has been to blend the two elements.
“Our various tactical steps have all fed into our core strategy of achieving strong organic growth and maintaining a healthy cash positive position in general,” says Pretorius.
“In addition, aside from the structural evolution of the business, we've also focused on the nature of our offering moving forward. Our business of carrying cellular destined calls from corporate companies, for example, will be a stepping stone to a wider offering in the future.”
TeleMasters has paid regular quarterly dividends to shareholders, while its share price has held steady at around R2. The company announced the payout of another 4c dividend to shareholders at this month's AGM.
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