Freshtel reseller Yippii goes live with VoIP offering
Yippii Pty Ltd, a service provider to the Christian community, has launched a VoIP service provided by reselling Freshtel's (ASX: FRE) white label wholesale offering and its VoIP over 3G service.
According to Freshtel, Yippii will use direct marketing to target the pastors and communities in its immediate network, which has a reach of approximately one million members. Freshtel said: "With the strength of the Yippii offering, expected take-up of the service will be rapid across its target markets."
Freshtel CEO, Rhonda O'Donnell, said: "The provision of customised and branded services like the one developed for Yippii is becoming the cornerstone of our future business and follows on from a number of similar solutions recently delivered." O'Donnell gave no indication of expected take up of the service, but was much more specific when the deal was announced in January, saying: "We are expecting upwards of 15,000 new users in the first year of the deal."
Also, at that time Freshtel said that Yippii planned to create a complete Internet telephony service encompassing an Internet phone, Freshtel Mobilelink (Freshtel's VoIP over 3G service ) and hardware such as the Siemens dual cordless phone which will be customised and branded for Yippii.
Michael Webb, Director of Yippii, said: "Freshtel's Voicedot network emerged as the clear leader in providing this service and they have worked with us to provide a packaged solution that was simple for us to brand and market. We have also been very impressed by the extent to which Freshtel are leading the way with mobile-phone based Internet telephony and we expect this to be an extremely attractive component in our product offering." Freshtel still struggling
With release of its first half financials in March Freshtel reported a deteriorating financial position. In the half year to 31 December 2008 revenue from ordinary activities declined 57 percent to $1.01m and the company incurred an after tax loss of $4.81m, 39 percent bigger than the previous corresponding period. Cashflow in the half year was a negative $4.19m leaving the company with cash reserves of $3.97m.
In its Q4 cashflow statement release to the ASX on 3 August the company said it had ended the financial year with a cash balance of $2.36m after raising a net $1.7m through a rights issue. It managed to cut payments to employees and suppliers by $1.0m to $2.1m in Q4 compared to Q3 thanks to a redundancy programme. The company said it was "positive about ongoing licensing and growth opportunities for...the Voicedot network and targeted calling card opportunities."
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