Conduit may change listing

TELEPHONE directory assistance company Conduit is considering changing its listing to the Irish and London stock exchanges.

Chief executive Liam Young said the company’s Neuer Market listing was under review and revealed that the switch could occur within months.

Yesterday, Conduit’s first-quarter results showed a 2% sequential rise in revenues to €15.3m, on call volumes, which were up 5% to 24 million calls to its directory assistance numbers.

Merrion Capital analyst John Coolican said it was significant there was sequential jump in gross margins, up to 45.6% from 41% in the prior quarter and 33% in Q3FY02.

“This, combined with a 5% reduction in operating expenses to €5.8m, generated a net income of 0.9m and an EPS of €5 cent per share. The company improved its cash position to €26m with €2.8m cash generated from operations during the quarter,” he said.

Mr Coolican said these results showed Conduit was generating cash and profits ahead of recent expectations.

“Its demonstration of improving operational efficiency is a welcome development but only one part of the story. The real earnings growth potential lies in its ability to capture a meaningful share of the UK DA market with its own brand service,” he said.

He pointed out the full deregulation of the British market was still 12 months away.

“The intentions of other operators in the UK market to co-operate or compete with Conduit will be pivotal to the company’s ability to establish its own brand in this market,” he added.