(AOF) – Avenir Telecom (-12.52% to 0.13 euros) is among the main declines in the DTH market following the announcement of a fall in half-yearly sales. At the end of September, the designer and distributor of mobile phones and mobility accessories generated a turnover of 7.3 million euros, compared to 13.6 million euros a year earlier. He explains this decline mainly by two major events which had been explained in 2022-2023.
Avenir Telecom cites 3 million linked to the sharp decline in orders from the Group’s former number one customer, which itself lost its two largest contracts during the previous financial year, as well as 1.8 million euros linked to the cessation of sales of laptops and tablets, an activity which had still generated revenue during the first half of 2022-2023.
“Thanks to its solid financial structure, characterized by available cash of 24.3 million euros at the end of September 2023, Avenir Telecom is continuing its investments aimed at its commercial reconquest with two axes of development in parallel: the feature phone and diversification product around its new brand”, w.international, explains the company.
Finally, Avenir Telecom continues to actively study external growth opportunities.
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End of price decline
Thanks to the price war, French consumers have benefited from some of the lowest internet prices in Europe. But little by little, subscription prices are increasing. According to the telecommunications authority (Arcep), in 2021 they increased by 3.1% for mobile and 5.1% for landline. If the current inflationary context can explain this rise in prices, it is not the only reason. All stakeholders are, in fact, seeking to improve their margins. They have already managed to outsource part of their investment expenses linked to the deployment of their fiber and mobile infrastructures (4G and 5G). Now they just have to increase their income. This is an important issue to benefit from a development of their performances. Generating a satisfactory level of available cash flow (free cash flow) also allows them to benefit from attractive financing conditions, in a sector which requires significant investments. Investments in the sector have almost reached 15 billion euros in 2021, a historic level. The increase has reached almost 50% since 2017.