Scottish firm posted flat revenues of £80.2 million for the last financial year
Redeem Group has surpassed the two million handsets landmark as part of its partnership with O2, with more than 420,000 devices processed in the last year.
The Scottish-based recycler revealed the figures to Mobile News as it announced flat revenues of £80.2 million for the financial year ending March 31, 2016.
Redeem has ran O2 Recycle since 2009, but has seen the number of handsets processed from the operator increase substantially in the last two years, hitting the one million mark in 2014, and the two million milestone earlier this month.
EBITDA at the firm, which also struck deals with Three in the UK and Vodafone in Spain in the last financial year, grew by five per cent to £2.3 million.
Redeem Group CEO Paul Adams, who joined in March, blamed the flat revenues on a “realignment” of the business that has seen it move from online brokering, which involves one-off recycling deals with low margins, to partnerships with operators and retailers, and international expansion.
“We are pleased to have signed a number of important new contracts with the likes of Three in the UK, Vodafone in Spain and Samsung in Poland which help to demonstrate our appetite for international expansion,” said Adams.
“In addition to expanding geographically, we are increasing our range of services in response to mobile network operators and retailers who are looking for a broader range of services
Redeem has also launched a new online store selling pre-owned devices to customers through its consumer brand Envirofone, which it acquired in January 2014 for an undisclosed fee.
“Two new areas of particular importance to the business over the next 12 months will be our online Envirofone shop, where customers can acquire the latest handsets and the launch of our residual value proposition which will make it easier to get hold of new devices shortly after they are released,” added Adams.
According to figures released by Redeem, more than 48 per cent of the £26.8 million paid to O2 customers was re-invested into O2 products.