Wednesday, 19 August 2009

Intec – winning new business

By Philip Carnelley, 19 Aug 2009, 08:45) Intec Telecom has issued a fairly positive trading statement for its Q3. The telecoms billing systems provider said that results are in line with expectations, with the closure of two ‘strategic’ contracts announced in July, one in SE Asia and one in Eastern Europe – in “eight figures”. It also announced a new contract – also ‘multi-million pound’ – in the US. It said it is confident of its outlook for the year, and that all sales regions are performing well despite 'difficult' conditions.

As we said earlier this year (see Telecoms Software Company, 12, GSOH, Seeks Partners, Global Experience Required), Intec now has to show it can maintain its growth trajectory in the face of falling ARPUs (revenue per customer) and therefore tighter budgets from the telcos, and expected market growth half that of its own. It does have an attractive story for its clients around better cash collection and operational efficiencies, so it has the potential. The market thinks so too: after a big jump in May (following the H1 results), to 70p, the share price has continued to rise. It’s up 2% today so far, to 90p.

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