Top 6 largest mobile-phone retailers in 2008

Spurred by Romanian consumers’ increasing interest in cutting-edge gadgets, accessories and services, mobile-phone retailers have increased sales and profit margins last year, while others, despite the losses, remained in the front line, according to their annual financial statements posted on the website of the Ministry of Finance.

6. Proton Technologies

Proton Technologies, company specialized in mobile handset retailing that was 66% acquired by Vodafone carrier from Gabriel Sandu, reported sales of 15.9 million euros for 2008.

The retailer’s sales sank by a staggering 150 percent in 2008 year-on-year, from 39.9 million euros, while headcount increased to 222 from 201 in 2007.

However, the 290,000 euro profit in 2007 turned into 4.25 million euro losses in 2008.

“This decline is largely due to the switch from the partnership with Orange to the equity acquisition by Vodafone. In the area we operate Vodafone didn’t enjoyed a comfortable penetration rate, and the majority of our clients were Orange users. So, our traditional clients give up shopping from our stores so, our 2008 and 2009 client base is completely new. Furthermore, the affiliation to a group involves higher expenses, for instance the audit cost us 40 times more than in 2007”, Gabriel Sandu, founder and former managing director of Proton told Wall-Street.

5. Fonomat

Fonomat became the largest Orange dealer in April 2008, with a 167-store network.

The retailer reported after-tax profit of 403,434 euros for last year, versus 163,417 euro loss in 2007. Sales increased to 23.15 million euros, as compared to 21.2 million euros in 2007.

Fonomat is the result of Spanish-based GED Private Equity’s acquisition of four retailers: GSM-Dasimpex, Puls GSM, GSM Land and Plus GSM. With a network of 167 stores across the country, and 480 of staff, the company aimed at enhancing its retail chain up to 200 stores by end-2008.

In 2007, Fonomat sold 300,000 mobile phones, of which 65% Nokia, 10% Sony Ericsson, 8% Samsung, 6% Sagem, 6% Motorola and 5% other manufacturers. The profit margin for a mobile phone dropped from 20% four years ago to 10% two years ago.

4. Arsis Trading

Arsis Trading, Romania’s largest Vodafone distributor, reported sales of 28 million euros, up 38.6% from 20.2 million euros two years earlier.

The company racked a profit of 800,000 euros in 2008, compared to 21,000 euros in 2007.

Early last year, the mobile handset retailer, which was established in 1991, had approximately 60 stores, however in December, the network enlarged to 125, according to own statements.

The network development has led to an increase in sales force from 131 employees in 2007 to 400-500 in 2008.

3. Euro GSM

Euro-GSM recorded last year sales of 29.8 million euros, 16.7% down from 34.8 million euros a year earlier.

The retailer booked a profit of 3.15 million euros in 2008, up 287.5% a year earlier.

According to information available on its website, the network includes 110 stores in 65 cities.

2. Avenir Telecom

Locally, Avenir Telecom holds and operates 121 Internity stores, exclusively Cosmote distributor, and has a headcount of 500.

The group posted revenues of 712 million euros for 2008-2009 fiscal year, Romania adding 9% to the group’s total revenues.

Last year, the retailer recorded sales of 63.8 million euros and net profit of 3.51 million euros.

Headquartered in Marseilles, France, Avenir Telecom is one of the largest European retailers of telecom products and services. The group operates 650 stores worldwide and sells mobile phones, accessories, and mobile telecom services.

Last month, the company appointed Rodica Cazangiu (photo) as managing director of Avenir Telecom Romania.

1. Germanos

In February 2008, Germanos passed the 200-store mark, securing 87% coverage of the country’s urban population.

The company posted sales of 130 million euros, up 50%, lifting Germanos to No1 largest mobile-phone retailers in Romania. In 2007, sales stood at 84.7 million euros.

However, Germanos reported losses of 3.57 million euros in 2007 that increased to 4 million euros in 2008.

“According to our forecasts, last year, the mobile telecom market reached 5 million units up to a median price of 110 euros. The most popular products were the phones priced between 90 and 120 euros with the following features: 2MP camera, MP3, and BTH connectivity”, Alexandru Munteanu (photo), sales operations manager Germanos Telecom Romania told Wall-Street.