"For Tecnotree, 2018 was a year, where we clearly demonstrated our resilience and ability to make massive turn-around of our results, especially in the second half of the year. While we showed stable performance on the revenue growth in Q4 we also improved our operating result significantly in the fourth quarter. This certainly confirms that we are on the right path to recovery and growth.
The company’s long term viability, was further endorsed by the capital infusion that we received from Fitzroy Investments Limited during H2. This further strengthened our overall financial situation and the new investors believe in the company’s overall turn-around and growth strategy.
The investment by Fitzroy also enhanced the confidence of our major customers and that has reflected in order volumes in Q3 and Q4 of 2018.
Tecnotree was able to garner new orders and some of the major ones were:
• Order for Wholesale Billing from Nepal Telecom for the International Roaming as a turnkey project
• Renewal of Maintenance contracts of EUR 1.9 million from a major operator in Middle East
• Delivery of a VAS platform for a new customer in Europe
• Renewal of Maintenance contract with Net One
• Implementation of Tecnotree My life Dashboard Self-care product in Mauritius Telecom
By focusing on our key customers in terms of high quality delivery and SLA compliance during 2018, we also won many accolades from our customers and they clearly stand as a testimony to our product features as well as to our stability and delivery competence.
We are now confident that our customers are convinced about the stability and our ability to deliver state-of-the-art products and excellent services, which will result in good new business opportunities.
Tecnotree has been increasing the efficiency of operations over the last few years, at the same time reducing the costs prudently. In 2018, the company continued to optimize costs. During the Q4-2018, Tecnotree completed the negotiations in Finland, which will result in further reduction of costs by EUR 2 million, the full impact of which will be realized in 2019.
Costs were optimized in other areas also, resulting in overall reduction in opex by 21% over the previous year.
Given that the company operates in emerging markets with multiple tax regimes, the withholding taxes continue to be a major concern. The company is trying to optimize the tax burdens and to ensure lesser tax impacts in the coming years.
To ensure the stable cash position the company continues to enforce restraint in all areas of expenditure and is focused on the aggressive and timely collection of the outstanding receivables.
2019 - The road ahead
In 2019, Tecnotree will strive to recover in terms of order intake and focus on profitable business growth by efficient cost management.
While expanding its market reach to new geographies, the company also will focus on delivering cutting-edge technology based Digital BSS 5.0 stack to new and existing customers and providing state-of-the-art digital transformation capabilities. Tecnotree’s products will help the customers to grow revenue while reducing operational costs and will deliver superior speed of service."
Chief Executive Officer
Prudent cost management yields strong profitability improvement