12 Jan 2015 07:00
12 January 2015
The People's Operator plc
("TPO", the "Company" or the "Group")
Trading Update
The People's Operator (AIM: TPOP), the cause-based commercial mobile virtual network operator ("MVNO"), today provides a trading update for the year ended 31 December 2014.
Following a strong finish to the year, subscriber numbers reached 14,032 at 31 December 2014, representing an increase of 140 per cent. since 30 June 2014 (5,800 subscribers). This is a significant (28 per cent.) uplift on both the 10,913 subscribers at 31 October 2014 and the Company's initial expectations for the year.
This growth is reflected in monthly subscriber revenues from PAYM customers which have increased by 40 per cent. since 1 October 2014 and 121 per cent. since 30 June 2014.
Average revenues per subscriber and average customer acquisitions costs remain in line with those set out in the Company's AIM Admission Document.
The Group remains on track with its US launch and the development of its new social network platform, which will create an online community to expand the global network of mobile phone customers who share in the common belief of supporting causes.
Mark Epstein, Chief Executive Officer of The People's Operator, commented:
"We are pleased to have achieved strong growth in our subscriber numbers and to have finished the year substantially ahead of our targets. This performance gives us confidence for 2015, as we launch our new online, cause based community platform and expand into the US."
For further information
The People's Operator plc Andrew Rosenfeld, Chairman Jimmy Wales, Executive Director of Strategy and Digital Community Mark Epstein, Chief Executive Officer
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finnCap Ltd Stuart Andrews / Christopher Raggett / Simon Hicks
| 020 7220 0500 |
MHP Communications Katie Hunt / Vicky Watkins / Jack Holden | 020 3128 8100 |
About The People's Operator
The Company was founded in 2012 and currently offers customers pay monthly ("PAYM") and pay-as-you-go ("PAYG") mobile contracts. These contracts are competitively priced and allow users to direct 10% of their monthly bill to a cause of their choosing at no additional cost to themselves. In addition, The TPO Foundation, a UK registered charity, will receive 25% of the UK trading profits generated by The People's Operator LLP. A similar structure is proposed to be adopted in other countries.
The strategy of the Group is to maintain a low fixed-cost base, small staff numbers and lower levels of advertising and marketing expenditure than its competitors. In addition, as TPO operates as an MVNO, the Group is not expected to be exposed to the high infrastructure costs and large capital investment charges that traditional mobile operators can incur. This strategy is expected to enable the Group to offer customers a highly competitive pricing model with a high quality of service, whilst generating an attractive return to shareholders after donations to causes.
TPO has developed partnerships with community organisations and causes who promote TPO's products to their supporters. Under the direction of Jimmy Wales, the founder of the online encyclopaedia Wikipedia, the Company is also developing an online viral community to expand the global network of mobile phone customers who share in the common belief of supporting causes.
The Directors believe that this strategy is scalable into new markets around the world which offer competitive wholesale mobile network bandwidth prices and where subscriber acquisition and revenue growth can be driven quickly at a low incremental cost once network agreements have been concluded with local network operators.
Initially, TPO intends to launch in the United States in 2015 having signed a long term operating agreement with Sprint, the third largest wireless network operator in the USA, in September 2014. Following expansion into the USA, the Directors have identified a number of jurisdictions for future expansion of the TPO offering (Mexico, Brazil, Asia and Europe) and over the next 18 months the Group intends to negotiate a series of operating agreements with established network operators in these regions with a view to replicating the model in an increasing number of countries worldwide.
TPO was admitted to Aim on 4 December having successfully raised approximately £20 million, before expenses, through a placing at 130p per Ordinary Share which will primarily be used to invest in the development of its viral, on-line global community platform and to provide working capital for expansion.
For more information, visit: https://www.thepeoplesoperator.com.