The new model, which includes a new focus on frequent business travellers and regular international callers, has resulted in a new fixed-rate call and data plan for business travellers in 66 countries implemented this past summer, has not been cheap though and has resulted in a loss for the privately-held London-based company of 91.5 million pounds ($146 million USD) according to a Reuters report. That’s an increase over a 34.4 million pound loss the previous year, and the company is once again looking for financing to continue its strategy.
The change to a new business model has not come cheap
Officials said that it “remains in talks with current and new investors to meet the shortfall.”
“The funding situation isn’t really one of great concern from our perspective,” Truphone Chief Executive Steve Robertson said. “It is quite a normal condition for us. Our investors are extremely committed and … have supported us consistently over the past three years.”
We remember that Truphone garnered a £70 million investment early last year from billionaire Roman Abramovich in exchange for a 23.3 percent stake in the company.
Truphone makes 90 percent of its revenue from its SIM cards, but also still supports the app, though it’s only available on iOS and Android, and notably lacking a Windows Phone version. Robertson says the company will be “looking at moving to consumer markets” over the next 12 months, which hopefully means an expansion to new platforms in the coming year as well as more consumer-friendly pricing.
Truphone is also “planning for a quick doubling of the number of countries where it offers personalised numbers and local dialing plans,” according to the report, which Robertson says could be expanded beyond that point. The company has also increased its employee count to between 700 and 800 people as it looks to continue transforming its business.
Partnership provides regulation compliant call recording solution to NICE
Part of the business also received a boost courtesy of a new partnership with NICE, in which Truphone would provide NICE NTR customers an integrated solution to store and analyze data. Separate from the SIM and VoIP business, the partnership will enable clients to have an integrated solution to comply with the newest international cellular record keeping regulations, including FCA in the UK and Dodd-Frank in the US with the ability to capture all voice interactions across the different channels (front-end, back-office, mobile phones, etc.).
“We are delighted that our Mobile Recording capability will further enhance the NICE Trading Recording system,” Paul Liesching, Senior Vice President, Truphone Mobile Recording, Truphone said of the partnership. “By integrating Truphone Mobile Recording, NTR customers will now be able to support their mobile compliance and governance requirements across four continents.”
It will be interesting to see how Truphone’s business transforms over the coming year. As a consumer or business partner, do you use Truphone services?