TeleMasters shares fall despite bet on a new business model

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The company is moving away from the traditional variable billing service to subscription-based services

Listed technology firm TeleMasters said on Tuesday earnings and cash flow for the six months to December 2019 had increased, driven by cost saving measures and building an annuity-based business model.

“This gives us and our customers the opportunity to budget for and plan communication expenses throughout the year, thus providing a clear return on investment benefit,” the company said.Headline and diluted headline earnings per share also increased to 3.9c from 1.34c in the previous six months. While the full affect Covid-19 cannot yet be determined, TeleMasters' board of directors is of the opinion that, “the group has sufficient resources to continue as a going concern for the immediate future”.

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