Vox Group has announced a 1% drop in group revenues following the decision to delay renewing SIM cards in its Vox Orion division, in preparation for the new mobile termination rates.
The group posted its interim results for the six months ending in February 2010, estimating an increase for the full year results, backed by the group’s wholesale voice and data businesses and the introduction of local number portability in South Africa.
Although revenue from connection incentive bonuses (CIB) dropped from R37.7m in the comparable period last year to R3.4m this year, the group posted a 22.5% increase in gross profit margins and a growth of 18.91% in the data services division, Vox Datapro.
“We have seen excellent uptake of new products like the Fishbone line bonder and Eyeris videoconferencing solution, as well as improved usage”, said the Vox Group CEO, Tony van Marken, announcing more voice and data solutions to be introduced through 2010.
The company is expecting strong revenues for the end of the financial year, due to the new call termination rates and full number portability that would see a migration of its customers to its its all-in-one Cristal Vox voice and data solution.
“Once local number portability comes into effect on April 26, we expect to see increased uptake of our Cristal Vox offering, positioning the group for stronger revenue growth in the future”, explained van Marken.
ICASA’s earlier decision to lower call termination rates for both fixed and mobile calls will provide customers with more competitive rates for their outbound voice traffic, although the regulator needs to also enforce carrier preselect and local loop unbundling, he added.
The group’s gross profit remained unchanged at R235 million and total revenues topped R1 044 billion, despite the difficult economic environment and deflationary pricing in the voice and data market.
Vox Telecom Limited is an independent telecom operator, providing voice and data services to the Southern African market.