27th Mar 2014 14:02
LONDON (Alliance News) - Artilium PLC swung to a pretax profit despite seeing revenue hit by lower income from traffic at United Telecom NV, as costs did not recur in the half-year ended December 31, 2013.
The telecommunication software and services company posted a pretax profit of EUR255,000, swung from a pretax loss of EUR79,000, despite seeing revenue decline to EUR5.5 million from EUR5.7 million.
Although Artilium posted restructuring costs of EUR324,000, it lowered its administrative expenses to EUR3.6 million from EUR3.8 million, and depreciation costs of EUR396,000, and other losses of EUR158,000 in the previous year did not recur.
Artilium's software sales rose to EUR3.3 million, from EUR2.9 million, but said this was offset by the traffic revenue loss at United Telecom which dropped to EUR5.5 million from EUR5.7 million, as mobile operators in Belgium lowered their prices.
The company is re-negotiating its current traffic tariffs with United Telecom, in order to restore revenue levels and remain attractive to customers in the Belgian market.
Artilium said it expects challenging conditions in its market to continue into the second-half of year; however, it expressed confidence that it can grow its business, although it depends on it converting its existing sales pipeline.
"The challenge for the coming period is now to convert the promising sales pipeline into revenue and start growing the top line," said non-executive Chairman Patrick Morley in a statement.
Shares in Artilium were trading down 1.8% at 6.75 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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