TelePlus announced that it is acquiring Telizon, Inc., a reseller of landline and long distance services as well as an internet service provider. This acquisition will essentially double the size of TelePlus and after being rolled in to TelePlus Connect Corp., will result in bringing TelePlus Connect's revenues to $14.5M and EBITDA to $1.9M. The acquisition of Telizon, once completed, would leapfrog the Company's business plan by 18 months increasing TelePlus' revenue run rate to $30M and yield yearly EBITDA earnings well in excess of 1.0 Million.
TelePlus Enterprises, Inc. is emerging as a new market leader in the rapidly growing wireless and portable communications industry in North America. From its small-chain roots in Canada, the company is now planning a network of 500 unique wireless retail locations and distributors by 2008.
The recent emergence of TelePlus as a potentially dominant player within the North American wireless communications sector is best characterized by a series of milestone initiatives over the past 12 months that have set the stage for accelerated North American expansion and record revenues through the current fiscal year and beyond.
TelePlus is enjoying exceptional revenue growth: 240% annually over the past three years. TelePlus has embarked on an accelerated growth path organically and through acquisitions expected to yield significant shareholder value. Such growth will come through the development of Company operated wireless stores and the implementation of the Company’s Mobile Virtual Network Operator (MVNO) and landline telephony service. TelePlus announced that it is acquiring Telizon, Inc., a reseller of landline and long distance services as well as an internet service provider. This acquisition will essentially double the size of TelePlus and after being rolled in to TelePlus Connect Corp., will result in bringing TelePlus Connect's revenues to $14.5M and EBITDA to $1.9M. The acquisition of Telizon, once completed, would leapfrog the Company's business plan by 18 months increasing TelePlus' revenue run rate to $30M and yield yearly EBITDA earnings well in excess of 1.0 Million.' Projections call for TelePlus Connect, the newly formed subsidiary following the transaction of Keda Consulting Corp., and Freedom Phone Lines, to pick up $60 million in revenues and $16.1 million in EBITDA over the next 60 months. Over the next 48 months, the company anticipates over $41 million in revenues, and $10.8 million in EBITDA. These numbers do not include any revenues the company is already producing from other divisions. TelePlus’ seasoned and experienced management team is familiar with all aspects of the rapidly growing and changing cellular communications business. The wireless market is the fastest growing consumer segment in history. The prepaid US market is expected to reach US $32.1 billion by 2008 and the prepaid wireless sales are expected to represent the lion share of this market. TelePlus is well positioned to capture the growth of the US prepaid wireless market with its MVNO program.
TelePlus is a leading and respected wireless retail chain that today owns and operates more than 40 successful wireless retail outlets. Revenues have grown at a rate of approximately 240% annually, up from US $1.4 million in 2000 to an estimated US$13.0 million in 2004, representing over 10 consecutive quarters of record growth. But that’s just the start of the TelePlus story. The Company has also embarked on a smart and ambitious growth plan that has aligned this successful chain store operation with some of the biggest names in retail.
Rising Cell Phone Demand to Fuel Market Growth
Mobile electronic devices have become a necessary tool for business professionals and are becoming an increasingly large part of consumers’ everyday life. The demand for wireless services and products is growing at a torrid pace and is expected to remain strong as a result of several factors including:
increased awareness of the value of mobility emergence of wireless Internet segments introduction of compact phones and devices with longer-lasting batteries increasing affordability of wireless usage relative to traditional landline phones new applications of 3G technologies such as MP3 and wireless location services Wireless phones are among the fastest growing consumer products in history. According to EMC, a leading researcher and publisher of intelligence about wireless markets, there are now more than 1 billion wireless phone subscribers worldwide. EMC estimates that by 2005, 50% of all calls in the world will be wireless.
Great Expectations for TelePlus Wireless Corp.
TelePlus Wireless Corp. currently operates its private label wireless program, referred to as Mobile Virtual Network Operator (MVNO), primarily catering to users of prepaid and disposable phones. The concept was first pioneered in Europe by companies such as Virgin Mobile Telecoms of England, and Wireless Maingate of Sweden. TelePlus is offering a similar product in the U.S. where market prospects hold great expectations.
Increased affordability of wireless is expected to boost demand. In addition, the prepaid market is the fastest growing segment in the wireless sector in terms of new customer acquisition with revenues expected to reach US $32.1 billion by 2008.
With the launch of its MVNO service, TelePlus has the opportunity to participate in another aspect of the lucrative wireless mobility market without the prohibitive costs of building its own infrastructure and network. Cellular airtime would be purchased from major carriers and sold at a premium.
TelePlus’ MVNO which utilises AT&T’s reliable network is expected to grow organically and through acquisitions.
TelePlus Wireless to Offer Disposable Cell Phones.
• One of the most dynamic and exciting components of TelePlus Wireless’ growth plan is the development of private label and prepaid disposable wireless products. Not unlike disposable cameras in terms of price and consumer appeal, these products are expected to be sold through mass merchandisers such as Wal-Mart, Best Buy, 7-Eleven convenient stores, TelePlus stores and other retail outlets.
• As well, TelePlus products are expected to be available for purchase in vending machines at high traffic locations such as airports, train stations and hotels. As a prepaid private label cell phone service, the Company’s operations will target the tourism trade and international business travel sectors.
TelePlus Connect Corp.
TLPE services include landline and long distance prepaid services catering to individuals who cannot obtain basic telecom services from traditional telecom carriers. Current estimates place the "unbanked market" in North America at 9.5% of total households and the market size to over US $1 billion.