Euro-GSM group expects to derive cumulated turnover of some 260 million euros this year, up 50% against 2006.
Silvia and Zsolt Fodor, founders of the group, one of the biggest networks of outlets specialised in the selling mobile telephony services and products on the market, say the two companies they own, Euro-GSM and Mobile Distribution, generated turnover worth above 170 million euros in 2006.
Euro-GSM owners early last year decided to separate retail from distribution by setting up Mobile Distribution, a mobile phone and accessories warehouse. In 2006, Euro-GSM posted turnover worth about 54 million euros, while Mobile Distribution, the company that took over distribution activities, reached turnover topping 119 million euros in its first year in business.
"In 2005, when Euro-GSM was a single firm, turnover went beyond 102 million euros. In 2006, after the activity split into retail and distribution, the group's overall increase stood at about 70%, to 173 million euros," Silvia Fodor, general manager with Euro-GSM, told ZF.
The main growth driver of the business was the expansion of the mobile telephony market. "The current mobile telephony penetration rate in Romania is of around 70%. In the next 2-3 years, we estimate there's still room for growth on this segment (...)," specified Fodor.
On the other hand, the expansion of the store network and adjustment to market requirements, too, contributed to the growth of the business.
As regards profit, this was entirely reinvested, according to the company's representatives, who chose not to reveal its value.
At the same time, Silvia Fodor says the group will focus on franchising to expand its store network.
"It's quite difficult for us to make turnover growth projections for this year because of the franchising project. Although our expectations are upbeat and we target 30% sales growth for the franchised outlets we are going to open, we cannot anticipate with certainty how many franchised outlets we will open by yearend," said Fodor.
Fodor adds she is not considering selling the business, yet. Although she is not ruling out expansion abroad, she says the strategy will focus on the Romanian market in 2007.
Besides mobile telephony, the company has started expanding its product and services range, by signing distribution contracts in the domains of telecommunications (Dolce), Internet (ClickNet) and fixed telephony (Eufonika). According to its own estimates, Euro-GSM holds a share of some 10% of the mobile telecommunications market and 25% of Orange operator's market.
Euro-GSM has around 450 employees, with another 150 people working for Mobile Distribution.
Euro-GSM was founded in 1997, when it opened the first store specialised in mobile telephony in Transylvania, in Cluj-Napoca.
Euro-GSM
Expects cumulated turnover to hit 260 million euros this year, 50% higher than last year
Its owners last year decided to split activities into retail and distribution
The expansion of the store network will be mainly done by franchising
Its strategy will focus on the domestic market in 2007
Also started to expand its product and services range by signing distribution contracts in several domains
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