Wameja Di Regulatory News (WJA)

25 Oct 2006 08:15

eServGlobal Limited25 October 2006 Sydney 25 October, 2006 eServGlobal Limited 2006 Annual General Meeting : Chief Executive Officer's Address Ladies and Gentlemen, It is my pleasure to address you today, thank you for your attendance. I would like to begin with a review of the FY06 fiscal year. After a great deal of hard work and commitment from our people, the neworganization achieved operational effectiveness early in calendar 2006. The verystrong second half results testify to the strength and potential of the newcompany. Of the $95 million full year revenue, $62.5 million was achieved in the secondhalf. We maintained EBITDA margin at 10.6%, from 10.8% in the previous year.Full year net profit lifted to $2.6 million, including a goodwill amortizationcharge of $3.16 million. Earnings per share lifted to 1.7 cents, of which 1.2cents will be returned to shareholders as a franked dividend. Given our merger challenges of late 2005 and the rapid changes taking place inour industry, we are pleased with these results. Moreover the positive marketresponse to the new company and it's greatly expanded product range, gives usgreat confidence for the years ahead. There is no better example of the standing of the company than our success inDubai, where we will deploy our real-time convergent billing solution in one ofthe most advanced new networks in the world. This particular network is a "quad-play" network, which combines voice fixed and mobile, data and televisionover a single network. This technology offers radical benefits for operatorsand subscribers alike and eServGlobal is playing an active role in its progress. Our 2007 plan calls for continuing revenue and profit growth, with continuinginvestment in new product development. Our plan includes a 3-year objective of14% EBITDA margin, which will be achieved by improved operational efficiencies,further growth in sales via partner channels and a continuing emphasis onproducts versus customized solutions. eServGlobal operates in some of the fastest growing telephony markets in theworld, with annual subscriber growth ranging from 25% to over 100% in parts ofthe Middle East, India and Asia. This growth is contributing to our success andwe will continue to invest in the developing world. Our customers in the developed world are investing in next-generationtechnologies to deliver more services to their subscribers at lower cost.eServGlobal's SIP/IMS and Realtime Convergent Billing platforms are widelyinstalled and highly successful. We are continuing our important partnering program, working behind the sceneswith the biggest names in network equipment, billing and systems integration.eServGlobal today derives 36% of our revenue directly from partners and I ampersonally engaged in many of these key relationships. In conclusion I must thank all of the people at eServGlobal, whose commitmentand professionalism enables us to achieve so much. I am very confident thatthis team can continue to deliver, for the company, for our customers and forthe shareholders. I thank you, the shareholders, for your support and I look forward to ourcontinuing success. Roger AgnielChief Executive Officer About eServGlobal eServGlobal (LSE:ESG & ASX:ESV) specializes in enhanced multimedia communicationservices and real-time multi-networks control solutions. Our systems enableService Providers to maximize today's proven revenue streams whilst ensuringservice continuity and new revenue opportunities when evolving to nextgeneration networks. eServGlobal solutions are designed for use in all types of networks from fixedto mobile to NGN/IMS. eServGlobal provides cost-effective and reliablemultimedia messaging delivery from voice to video mail; from SMS routing,antispam control and value-added services to instant messaging and presenceservices. eServGlobal delivers the most advanced prepaid top-up methods andreal-time rating enabling innovative marketing and prepaid-postpaid convergence Headquartered in Sydney, eServGlobal has operations in 15 countries worldwide.More than 75 Service Providers in over 50 countries are taking advantage of ouradvanced solutions and multi-network expertise to successfully address theirbusiness challenges. More information can be found at: http://www.eservglobal.com Cautionary statements Statements in this document expressing the beliefs and expectations ofmanagement regarding future performance are "forward-looking statements" withinthe meaning of the United States Private Securities Litigation Reform Act of1995. These statements are based on management's expectations as of the date ofthis document and are subject to uncertainty and changes in circumstances.Actual results may differ materially from these expectations due to risks anduncertainties including, but not limited to, uncertainty in communicationsspending, the implementation of the Company's strategic repositioning and marketacceptance of the Company's new solutions strategy, six-monthly fluctuations infinancial results, the Company's ability to exploit fully the value of itstechnology and its strategic partnerships and alliances, the availability ofproducts from product component vendors and other risks. In addition, whilemanagement may elect to update forward-looking statements at some point in thefuture, management specifically disclaims any obligation to do so, even if itsestimates change. Any reference to our website in this press release is notintended to incorporate the contents thereof into this press release or anyother public announcement. This information is provided by RNS The company news service from the London Stock Exchange