NFON, a pan-European cloud PBX provider, has said it has significantly increased its recurring revenues by 24.7 per cent to €43.7 million in the first nine months of 2020.
This is based on preliminary figures, with total revenues increasing by 19.2 per cent to €49.4 million. The company now serves 508,265 seats, with the number of seats installed at customers’ premises 17.7 per cent higher than last year. The company added that this number has more than doubled since the beginning of 2018.
Hans Szymanski (pictured), CEO and CFO of NFON, said, “We have massively expanded our business activities since the IPO and are very proud to have reached an impressive milestone of more than 500,000 seats. Our dynamic growth both this year and in recent years shows that we are hitting the nerve of the times with our business model. These half a million seats also form a very solid basis for further growth in the future. After all, each seat represents an extension for which monthly charges and call minutes are incurred and thus generates recurring revenues.”
The average revenue per user (ARPU) has stabilised at €9.77 over the course of the year in the 2020 reporting period and at the same time exceeded the previous year’s figure of €9.71. This development was mainly driven by the increasing volume of work done at home and the resulting higher call volume. The increased ARPU and the very high share of recurring revenues as well as the resulting improved gross profit had a correspondingly positive impact on the development of earnings. At the same time, expenses for travel and marketing activities, for example, were lower in the reporting period than in the previous year. As a result, earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to €1.8 million in the first nine months of
Szymanski added, “We were able to impressively demonstrate the advantages of our business model in the first nine months of this year: A stable, predictable basis due to a high share of recurring revenues coupled with high growth momentum. We enable business communication on the road, at home or from the office. With NFON, our customers can act completely flexible. The growth rate of 25% in recurring revenues proves that we meet the needs of our customers. We are convinced that the many positive experiences with communication solutions from the cloud will prove to be a sustainable market driver and that this momentum will outweigh the temporary reluctance of customers in some markets to invest in the long term from our current perspective.”
The Management Board of NFON AG will present the company’s preliminary 9-month figures at the German Equity Forum this morning.