finnCap reduced its TP to 20p, saying it looked forward to progress and further cost control, expecting profitability in the H218
Companies: The People's Operator
AIM-listed ethical phone operator and recent Thisismoney.co.uk's "SHARE PUNT OF THE WEEK" fell 46% on Thursday after its full-year results showed in-line results aided by currency tailwinds. It also confirmed that Jimmy Wales, the prominent Exec Chairman was stepping aside.
Revenues grew 63% to £3.4m, resulting in a loss of £8.7m. Growth came primarily from sales in the US which increased by around £750k. Average customer acquisition costs were £5.7 in the UK and $22 in the United States.
The group said it had appointed Julia Simpson, Chief of Staff at IAG plc, as Non-Executive Director.
finnCap reduced its target price to 20p (from 30p), saying it looked forward to progress and further cost control, expecting profitability in the second half of 2018:
"Prelims report revenue of £3.6m in line with expectations and the April trading update, and EBITDA loss of £5.7m (£6.0mE), with £1.7m funds, raised post year end and changes to the board.
Average revenue per user in the US of $22 (1H16: $22) remained strong at a cost per acquisition also of $22 (vs 1H16: $12); blended ARPU in the UK remained firm with PAYG at £13.22 and PAYM at £12.50 (1H16: blended £12.42), and a cost per acquisition of £5.70 (£6.34)."
Wikipedia Founder and Exec Chairman Jimmy Wales said it had been another year of growth for TPOP despite challenging market conditions:
"Our successful launch in the US with our partner T-Mobile has greatly increased our reach and appeal across a wider social and geographical demographic. Our costs per acquisition remain far below the industry average in both our markets."
Jimmy said the rise in social awareness and responsibility, especially in the United States in the aftermath of the election, chimes with the Group's message of supporting good causes.
"I believe that our increased organic growth and strength in marketing will continue to attract new customers and spread the word among our target communities."
Non-Exec Director Julia Simpson said she was delighted to join the Board, adding she believed the company was unique and pioneering in its "crowd giving" approach:
"Make a call, make a change. It is a privilege to be part of TPO. I look forward to contributing to the successful development of this brand."