TeraGo reported financial and operating results for the fourth quarter and full-year ended December 31, 2019.
According to TeraGo‘s 2019 results, the company’s total revenue for the fourth quarter of 2019 decreased by 7% to $12.0 million compared to $12.9 million for the same period in 2018. Connectivity revenue for the fourth quarter of 2019 is also decreased by 13% to $7.3 million compared to $8.4 million for the same period in 2018. But, cloud and colocation revenue for the fourth quarter of 2019 increased by 4% to $4.7 million compared to $4.5 million for the same period in 2018.
Full Year 2019 results
TeraGo’s Total revenue for 2019 decreased by 11% to $48.4 million compared to $54.3 million in the previous year. Connectivity revenue for 2019 is also decreased by 13% to $30.4 million compared to $35.0 million in 2018. Cloud and colocation revenue for 2019 decreased by 6% to $18.1 million compared to $19.3 million in 2018. Adjusted EBITDA for 2019 increased by 35% to $17.5 million compared to $13.0 million in 2018. The increase in adjusted EBITDA was driven primarily by the adoption of IFRS 16.
Tony Ciciretto, President and CEO of TeraGo said,
“As our financial and operational results for 2019 demonstrate, we executed on our plan to manage costs, generate strong Adjusted EBITDA and cash flow, while realizing key milestones on our 5G fixed wireless growth strategy. We also continue to innovate our product portfolio with the recent launch of TeraGo Internet 50/10 and SD-WAN. These new products will allow our customers to leverage state-of-the-art technology for more reliable and flexible internet connectivity along with a more centralized and advanced networking solution. Our technical trials with Nokia equipment for 5G business network solutions, in the Greater Toronto Area, is on schedule and we look forward to the launching of customer trials in the second quarter. We remain laser-focused on extracting the value out of our 24 and 38 GHz spectrum assets and believe we have a significant time-to-market advantage to be one of the first Canadian carriers to launch 5G fixed wireless services.”