Latest news with #serviceRevenue
Zawya
20-05-2025
- Business
- Zawya
South Africa: Vodacom targets double-digit service revenue growth by 2028
South Africa's biggest mobile operator Vodacom reported a marginal rise in annual earnings and aims to accelerate group service revenue growth into a double-digit rise over the next three years, it said on Monday. Vodacom, majority-owned by UK-based Vodafone, said headline earnings per share rose by 1.3% to 857c in the year ended 31 March, on a stronger second-half performance, though gains were capped by significant currency volatility. Group service revenue slipped 0.1% in rand terms to R120.7bn ($6.7bn). However, it was up 11.2% on a normalised basis, reflecting a 45.2% surge in revenue from Egypt in local currency terms and sturdy growth in its "beyond mobile services" across the group, which include fibre, digital and financial services. Normalised basis calculation adjusts for foreign currency fluctuations, hyperinflation accounting and excludes the impact of mergers, acquisitions and disposals. As part of its vision for 2030, Vodacom upgraded its target for service revenue on a normalised basis to double-digit growth by 2028, from a high single-digit rise. Group CEO Shameel Joosub said on a media call that the growth will be driven by expectations of more stability in the currencies the group is exposed to and improved economic growth. "I think all things considered, and the way we're executing on the different parts by growing customers, diversifying our beyond mobile ambitions, specifically in the fintech and fibre space, I think bodes well for this next period," Joosub said. In February, Vodacom also upgraded its earnings before interest, tax, depreciation and amortization (EBITDA) target upward to double-digit growth. Its EBITDA for the reporting period fell 1.1% to R55.5bn but grew 7.8% on a normalised basis. On the outlook for the group's business portfolios, Joosub said he expected mid-single-digit growth in its domestic market, a double-digit rise in its international business and growth in Egypt "in the 20s". Vodacom also expects group service revenue contribution from "beyond mobile" services to increase to 30% by 2030 from 21%, as it introduces advanced fintech services in Egypt. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Irish Times
20-05-2025
- Business
- Irish Times
Vodafone Ireland service revenue rises as company increases broadband base
Mobile and broadband provider Vodafone said service revenue in Ireland rose in the year to the end of March as the company built on its broadband customer base. The company said improved customer loyalty also supported revenues, although growth was partially offset by lower mobile termination rates. Vodafone Ireland's customer base rose by 18,000 over the year, while broadband customers increased by 22,000. The company also has a fixed wholesale network access partnerships, including a joint venture with Siro, that covers 1.7 million households in Ireland with fibre to the home. The wider group said it expected to return to top-line growth in Germany, its largest market, this year, driving an increase in cash flow after it said it met expectations for the year to end-March on Tuesday. READ MORE The group, which operates in Europe and Africa, reported adjusted core earnings of €10.9 billion, which it said met its €11 billion target when hyperinflation in Turkey was taken into account. Chief executive Margherita Della Valle has reshaped Vodafone by selling its operations in Spain and Italy and agreeing a merger in Britain, where it will become the mobile market leader when the deal completes in the next few weeks. But it was hit by a one-off change in German cable TV contract rules, resulting in a 5 per cent decline in service revenue in the country in the last financial year. 'Looking ahead, we expect to see broad-based momentum across Europe and Africa, and for Germany to return to top-line growth during this year,' she said. - Additional reporting: Reuters (c) Copyright Thomson Reuters 2025
Yahoo
20-05-2025
- Business
- Yahoo
8x8 Inc (EGHT) Q4 2025 Earnings Call Highlights: Strong Service Revenue Growth Amid Challenging ...
Total Revenue: $177 million, near the midpoint of guidance. Service Revenue: $171.6 million, near the midpoint of guidance. 8x8 Standalone Service Revenue Growth: 4.6% year-over-year growth in Q4, 2.8% for fiscal 2025. Gross Margin: 69%, at the low end of guidance range. Operating Margin: 10%, at the high end of guidance range. Operating Cash Flow: $5.9 million in Q4; $63.6 million for fiscal year 2025. Debt Reduction: Over $209 million reduced since August 2022 peak. Cash and Cash Equivalents: $89.3 million at the end of Q4. Net Debt to EBITDA Ratio: Approximately 2.7 times. Stock-Based Compensation: 4.6% of total revenue, a multi-year low. Guidance for Fiscal Q1 '26: Service revenue between $170 million and $175 million; total revenue between $175 million and $182 million; non-GAAP operating margin between 9% and 9.5%. Guidance for Fiscal Year 2026: Service revenue between $682 million and $702 million; total revenue between $702 million and $724 million; operating margin between 9% and 10%. Warning! GuruFocus has detected 5 Warning Signs with EGHT. Release Date: May 19, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. 8x8 Inc (NASDAQ:EGHT) reported a year-over-year growth in service revenue, excluding Fuze, of 4.6% in Q4, marking the highest growth rate in 10 quarters. The company achieved its highest two-year cash flow from operations, exceeding half of its market capitalization. There was a 13% year-over-year increase in customers with three or more products, indicating successful cross-selling and new customer acquisition. Strong momentum was observed in sales of Microsoft Teams integrations, with new license sales up 72% in Q4. 8x8 Inc (NASDAQ:EGHT) made substantial progress in upgrading customers from the Fuze platform, expecting full transition by the end of the calendar year. The economic environment remains challenging, with global uncertainties and tariff actions impacting market dynamics. The company is still navigating the transition of Fuze customers, which poses a risk of revenue loss during the migration process. Gross margin was at the low end of guidance due to a revenue mix shift towards lower-margin platform usage revenue. There is ongoing pressure on non-GAAP operating margins due to investments in growth and innovation. The macroeconomic environment has led to elongated deal cycles and shrinking deal sizes, affecting sales performance. Q: Can you share insights on the macro impact from your field reps and partners? Are there delays in sales cycles or spending? A: Samuel Wilson, CEO: In March and April, we noticed chaos in the US with elongated deal cycles and shrinking deal sizes. However, May has been calmer. The rest of the world seems to be chugging along unaffected by US dynamics. Q: What remains to be addressed in your go-to-market strategy, and can you provide adjusted service revenue growth for fiscal '26 excluding Fuze? A: Samuel Wilson, CEO: We are about 60-70% through our go-to-market transformation, focusing on solution selling. Kevin Kraus, CFO: Excluding Fuze, we expect positive growth next year as headwinds diminish. Q: How do you plan to achieve high single-digit growth, and what factors are driving this? A: Samuel Wilson, CEO: Growth is driven by internal factors like increased multi-product customers, new product sales, and improved go-to-market execution. We don't rely on market changes for growth. Q: Why are you winning in the CCaaS space, and how is your performance in the APAC region? A: Samuel Wilson, CEO: We offer a complete solution with best-in-breed technology from a single vendor, appealing to mid-market enterprises. In APAC, our CCaaS continues to perform well, supported by strong VAR and reseller networks. Q: What is your focus now that you've improved the balance sheet and expense structure? A: Samuel Wilson, CEO: Our focus is on returning to growth by accelerating the shutdown of Fuze and investing in CCaaS and distribution improvements for fiscal '27 and '28. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
8x8 Inc (EGHT) Q4 2025 Earnings Call Highlights: Strong Service Revenue Growth Amid Challenging ...
Total Revenue: $177 million, near the midpoint of guidance. Service Revenue: $171.6 million, near the midpoint of guidance. 8x8 Standalone Service Revenue Growth: 4.6% year-over-year growth in Q4, 2.8% for fiscal 2025. Gross Margin: 69%, at the low end of guidance range. Operating Margin: 10%, at the high end of guidance range. Operating Cash Flow: $5.9 million in Q4; $63.6 million for fiscal year 2025. Debt Reduction: Over $209 million reduced since August 2022 peak. Cash and Cash Equivalents: $89.3 million at the end of Q4. Net Debt to EBITDA Ratio: Approximately 2.7 times. Stock-Based Compensation: 4.6% of total revenue, a multi-year low. Guidance for Fiscal Q1 '26: Service revenue between $170 million and $175 million; total revenue between $175 million and $182 million; non-GAAP operating margin between 9% and 9.5%. Guidance for Fiscal Year 2026: Service revenue between $682 million and $702 million; total revenue between $702 million and $724 million; operating margin between 9% and 10%. Warning! GuruFocus has detected 5 Warning Signs with EGHT. Release Date: May 19, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. 8x8 Inc (NASDAQ:EGHT) reported a year-over-year growth in service revenue, excluding Fuze, of 4.6% in Q4, marking the highest growth rate in 10 quarters. The company achieved its highest two-year cash flow from operations, exceeding half of its market capitalization. There was a 13% year-over-year increase in customers with three or more products, indicating successful cross-selling and new customer acquisition. Strong momentum was observed in sales of Microsoft Teams integrations, with new license sales up 72% in Q4. 8x8 Inc (NASDAQ:EGHT) made substantial progress in upgrading customers from the Fuze platform, expecting full transition by the end of the calendar year. The economic environment remains challenging, with global uncertainties and tariff actions impacting market dynamics. The company is still navigating the transition of Fuze customers, which poses a risk of revenue loss during the migration process. Gross margin was at the low end of guidance due to a revenue mix shift towards lower-margin platform usage revenue. There is ongoing pressure on non-GAAP operating margins due to investments in growth and innovation. The macroeconomic environment has led to elongated deal cycles and shrinking deal sizes, affecting sales performance. Q: Can you share insights on the macro impact from your field reps and partners? Are there delays in sales cycles or spending? A: Samuel Wilson, CEO: In March and April, we noticed chaos in the US with elongated deal cycles and shrinking deal sizes. However, May has been calmer. The rest of the world seems to be chugging along unaffected by US dynamics. Q: What remains to be addressed in your go-to-market strategy, and can you provide adjusted service revenue growth for fiscal '26 excluding Fuze? A: Samuel Wilson, CEO: We are about 60-70% through our go-to-market transformation, focusing on solution selling. Kevin Kraus, CFO: Excluding Fuze, we expect positive growth next year as headwinds diminish. Q: How do you plan to achieve high single-digit growth, and what factors are driving this? A: Samuel Wilson, CEO: Growth is driven by internal factors like increased multi-product customers, new product sales, and improved go-to-market execution. We don't rely on market changes for growth. Q: Why are you winning in the CCaaS space, and how is your performance in the APAC region? A: Samuel Wilson, CEO: We offer a complete solution with best-in-breed technology from a single vendor, appealing to mid-market enterprises. In APAC, our CCaaS continues to perform well, supported by strong VAR and reseller networks. Q: What is your focus now that you've improved the balance sheet and expense structure? A: Samuel Wilson, CEO: Our focus is on returning to growth by accelerating the shutdown of Fuze and investing in CCaaS and distribution improvements for fiscal '27 and '28. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
12-05-2025
- Business
- Wall Street Journal
MTN Group's Key Revenue Metric Boosted by Nigeria, Ghana
MTN Group MTN -0.72%decrease; red down pointing triangle reported a rise in first-quarter group service revenue, boosted by Nigeria and Ghana, and said the separation of the fintech business continues to progress. The South Africa-based telecommunications group said Monday that group service revenue for the quarter ended March 31 was 47.37 billion South African Rand ($2.60 billion) compared with 42.90 billion rand, a 19.8% rise at constant currency.
