3U has closed a deal with Quelle, Europe’s largest mail-order firm. Starting in the middle of this year, Quelle will offer its customers their own fixed line scheme (powered by 3U), a special carrier pre-selection offer intended for Quelle customers. 3U will handle the execution of this plan.
Due to this project, 3U anticipates a broad volume of sales and increase of income starting in the second half of this year, following its weak start.
3U was unable to reach its customary profit margin in Q1. Restructuring due to the integration of OneTel has once again severely hindered profits. Additionally, due to technical difficulties experienced by system technology suppliers, the implementation of new products was delayed. Also the adjustment of customer portfolios from OneTel has contributed to Q1’s resulting business volume being lower than had been expected. The results from Q1, which will be released in detail on 17/05/2004, will however fall short of expectations.
The promising cooperation with Quelle should provide for clear growth, and is capable of compensating for temporal adjustments made during the transformation and its planned provisions. By the end of Q2, 3U will be in a position to initiate an increase of organic growth with the implementation of further products and services. By then 3U should have once again reached its former market strength.
3U TELECOM AG
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