iBasis Reports 16% Sequential Rise in VoIP Minutes of Use

Minutes of use on The iBasis Network in Q4 2004 rose to 1.5 billion, a 57% increase over the 955 million minutes carried in the fourth quarter 2003, and a 16% increase over the 1.3 billion minutes in the third quarter 2004. For the full year 2004, iBasis completed 4.9 billion minutes of international VoIP calls, which is more than 16% of all international VoIP minutes, according to forecasts from Telegeography 2005.



Average revenue per minute declined to 5.0 cents per minute in the fourth quarter 2004, down from 5.5 cents per minute in the third quarter 2004. This decline is predominantly due to a shift in traffic mix, which also resulted in reducing our cost per minute to 4.3 cents, down from 4.7 cents per minute in Q3 2004. Average revenue per minute is based on our reported net revenue divided by minutes of traffic.



iBasis noted that it doubled the volume of traffic it carried to mobile phones in 2004.



Financially, iBasis reported Q4 revenue of $75.1 million, compared to $53.2 million for the fourth quarter 2003. Net loss was $1.2 million or $(0.02) per share compared to a net loss for the fourth quarter 2003 of $2.6 million or $(0.06) per share.



"The fourth quarter was another record quarter with increased minutes, revenue, and margin, and lower expenses," said Ofer Gneezy, president and CEO of iBasis.
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