Titan Global Holdings has issued a revenue forecast for fiscal 2007 of $140 million, with $17.5 million in EBITDA. The mobile part:
“Titan Wireless Communications, Inc. (“T Wireless”), Titan’s recently formed prepaid wireless communications subsidiary, is expected to generate approximately $15 million in fiscal 2007 revenue excluding new product offerings and roll-up type acquisitions.
T Wireless is a Mobile Virtual Network Operator (“MVNO”). The Yankee Group, a prominent market research firm, projects that the number of subscribers through MVNO’s will exceed 30 million by 2010. Many MVNO providers are incurring substantial losses to acquire subscribers creating an opportunity to consolidate the MVNO marketplace.
“Our prudent approach to growth in the prepaid wireless sector will continue. While many MVNO competitors continue to accumulate significant losses to obtain subscribers, we will continue to focus on profitable growth,” stated Mr. Jensen. “Shareholders can expect us to roll out additional high-growth potential MVNO product launches and to increase margins due to economies of scale, cost cutting, and more efficient cost structures from our Tier 1 telecommunications providers. Additionally, T Wireless will seek opportunities to consolidate subscribers as other MVNO providers exit the space.”
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