How has VozTelecom’s model and strategy changed since it was acquired by Gamma Communications?
VozTelecom’s business model continues to be the same as it had been developing since it left MAB in 2016, the result of more than 15 years of experience providing cloud communications services to companies in Spain. The strategy is based, on the one hand, on developing the market through a distribution network and commercial partners specialized in the commercialization of our services, mainly those of fixed-mobile virtual switchboard, which provide companies with greater flexibility and benefits that telephony solutions based on conventional switchboards. And, on the other, develop an inorganic growth strategy that allows VozTelecom to develop new market segments, expand its commercial capacity in new territories, as well as expand its offer of ‘cloud’ solutions for companies, with the aim of becoming the operator communications and cloud leader in Spain in the business segment. In this sense, before we joined the Gamma group, we had already made an acquisition in the Basque Country and another in Andalusia. Now, with the financial support of the Gamma group, we have greater capacities to tackle new inorganic operations, a strategic aspect to achieve a leadership position in the market.
He has had to live the crisis of the pandemic under the umbrella of a sector that many say has served as a “lifeline” for many others… Has it also served to gain true technological and digital awareness?
Undoubtedly, telecommunications operators have been a true ‘lifeline’ so that many companies could continue to operate with their staff teleworking from home, further highlighting the benefits of PBX services in the cloud compared to conventional PBXs. On the other hand, the important deployment of fiber that has been carried out in Spain has been valued, which has allowed users to be able to hold meetings by videoconference and access with total effectiveness to the computer resources of their companies from remote connections. It’s hard to imagine how we would have endured confinement and teleworking without fiber, just with the old ADSLs from a few years ago. Today no manager of a company can ignore technology and digitization as an essential tool for the competitiveness of their business.
Leaving aside investment as such (the item of public funds), what could be done from governments and official bodies to support technology and their research and development programs?
It is very important that public administrations carry out an adequate analysis of the environment and technological capabilities of companies in Spain and define and agree on the driving sectors on which to invest, since it does not make sense to disperse investment in multiple sectors and projects that do not will have a transformative impact on our economy. We have to think in the long term and in which sectors and technologies we want to be at the forefront in the world and not in the short term.
The Covid 19 crisis has made certain sectors “fashionable”, including technology. Do you think that when the situation of the pandemic changes the taste of the investor, it will too?
In particular, apart from those known as ‘FAMG’, investors have also shown a high interest in cloud communications companies, which are closer to the ‘software’ segment than not to the traditional ‘telco’ segment, such as RingCentral , Vonage, 8×8 and Gamma Communications, the parent company of VozTelecom, all of them with an excellent stock market performance this last year after the generalized falls in March. No one can predict the reaction of the markets when the pandemic situation improves, but what is certain is that at this time some technology companies have very high PERs that, if in the medium term, cannot be sustained with an improvement in results of such companies, possibly lose the interest of investors. Gamma currently still has attractive valuation ratios for the sector in which it operates, making it an excellent opportunity for investors interested in participating in a profitable and growing project in one of the sectors that presents the greatest opportunities in Europe. for the next few years, in addition to obtaining an additional yield per share dividend that in 2020 has also increased compared to 2019.
How does VozTelecom 2020 dismiss at the business level and what are the forecasts for next year?
We close 2020 with an increase of more than 10% in the number of active extensions compared to 2019, so we are very satisfied. Our forecasts for 2021, if the situation of the pandemic does not force a new confinement, are optimistic in being able to continue growing organically in double digits. As for Gamma in the UK, the 2020 year-end forecasts will exceed the estimates published by analysts.