Euro-GSM group expects to derive cumulated turnover of some 260 million euros this year, up 50% against 2006.
Silvia and Zsolt Fodor, founders of the group, one of the biggest networks of outlets specialised in the selling mobile telephony services and products on the market, say the two companies they own, Euro-GSM and Mobile Distribution, generated turnover worth above 170 million euros in 2006.
Euro-GSM owners early last year decided to separate retail from distribution by setting up Mobile Distribution, a mobile phone and accessories warehouse. In 2006, Euro-GSM posted turnover worth about 54 million euros, while Mobile Distribution, the company that took over distribution activities, reached turnover topping 119 million euros in its first year in business.
"In 2005, when Euro-GSM was a single firm, turnover went beyond 102 million euros. In 2006, after the activity split into retail and distribution, the group's overall increase stood at about 70%, to 173 million euros," Silvia Fodor, general manager with Euro-GSM, told ZF.
The main growth driver of the business was the expansion of the mobile telephony market. "The current mobile telephony penetration rate in Romania is of around 70%. In the next 2-3 years, we estimate there's still room for growth on this segment (...)," specified Fodor.
On the other hand, the expansion of the store network and adjustment to market requirements, too, contributed to the growth of the business.
As regards profit, this was entirely reinvested, according to the company's representatives, who chose not to reveal its value.
At the same time, Silvia Fodor says the group will focus on franchising to expand its store network.
"It's quite difficult for us to make turnover growth projections for this year because of the franchising project. Although our expectations are upbeat and we target
