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FINANCIAL HIGHLIGHTS
The Analysys Mason Group ("Analysys Mason") is established as one of the world's leading specialist telecoms, ICT and digital media consultancies, offering a unique range of strategic consulting, market intelligence and implementation services on a global basis.
Overview
Analysys Mason's customers primarily comprise telecommunications operators, industry regulators, financial institutions, service providers, central and local governments, educational entities and banking institutions. More than 55% of its business comes from outside the UK home market and Analysys Mason has a wide range of clients in over 80 countries around the world which it services from its offi ces in Cambridge, Dublin, Edinburgh, London, Madrid, Manchester, Milan, Paris, Singapore and Washington DC.
Analysys Mason delivers expert advice on global telecoms, ICT and digital media to help its commercial and public sector clients around the world achieve outstanding business results. The organisation's specialist, independent consultancy services enable clients to meet their challenges in strategy, market intelligence, technology and operations by applying insightful, innovative and practical solutions.
Analysys Mason is respected worldwide for the exceptional quality of work and the intellectual rigour, dependability and integrity of its people. It delivers on its reputation through four operating divisions:
- Analysys Consulting: provides strategy consulting and economic modelling expertise in planning, policy, regulation and financial transactions
- Analysys Research: provides market intelligence and analysis, as well as forecasts and benchmarking expertise through publications (reports and databases) and research projects
- Mason: provides technical and management consulting expertise in operations, programme management, implementation and procurement
- Catalyst: provides technical and management consulting expertise in customer service strategy and contact centre operations.
The year in review
Each of Analysys Mason's operating divisions made significant progress towards achieving individual strategic objectives:
- Analysys Consulting maintained its market leadership in regulatory economics, due diligence and network cost modelling and expanded its US office through acquisition of principals from US consulting firm, SPR along with hiring a new head of media to spearhead expansion into the digital convergence sector
- Analysys Research positioned itself for the next wave of growth by hiring a new managing director. The division is now investing in a refresh of its product portfolio, business processes and delivery systems
- Mason accelerated its share of revenues outside the UK and began expanding services in the Next Generation Network (NGN) and operational support systems areas
- Catalyst refocused on its core markets of contact centre, customer service, management strategy and operations consulting, and restructured accordingly. The division is now investing in product and people management processes to take advantage of this important market sector.
In the last financial year, Analysys Mason:
- added more than 120 new clients more than half of which were from outside the UK
- increased subscription revenues in its research division
- appeared as expert speakers at more than 25 international conferences
- had experts regularly quoted in leading business and industry media; appearing on the BBC and in press such as The Economist, The Wall Street Journal, The Financial Times, Total Telecom, Telecoms Finance and Mobile Communications International.
Markets
The principal focus of Analysys Mason's consulting and research services continues to be the telecoms, ICT and digital media markets. Demand for its services was steady during the past financial year, driven by a variety of important long-term trends, including:
- network technology changes for both fixed and mobile operators and vendors - 3G and NGNs
- the trend towards digital TV technologies for terrestrial broadcasting as well as cable TV and satellite direct-to-the-home (DTH)
- the convergence of the media and communications markets, leading to TV service providers selling voice and data services and vice versa
- the long-term changes arising out of the battle between fixed and mobile operators for voice services, and the move towards "triple play" and "quadruple play" services
- the changes in demand, technology and market structure that are placing revenue and margin pressures on operators seeking differentiation and added value
- the development and growth of opportunities for ICT in both the public sector and private enterprises
- regulators' and policy makers' requirements for expert support on issues such as spectrum management, interconnection, policy harmonisation and liberalisation in emerging markets
- the development of technology and operational support systems for the telecoms sector
- the growing pace of financial transactions in the sector, requiring insightful advice and guidance on due diligence, economic modelling, network assessment and regulation
- the continuing trend of governments to view telecoms as important for economic growth, to the extent that they are acting to reduce the "digital divide" between rich and poor and between urban and rural areas.
Strategy
Analysys Mason's strategy is to focus on its core competency of providing specialist consultancy services and implementation capabilities within the telecommunications ICT and media sectors.
Analysys Mason is committed to:
- increasing its market penetration by exploiting industry themes
- pursuing geographic expansion both organically and through acquisition
- expanding the global footprint of the complete range of services - capitalising on Analysys' international channels
- extending service offerings in NGNs and ICT along with network applications and media
- ongoing investment in brand awareness and positioning via media relations, web sites and account management
- making the most of its unique intellectual property and thought leadership in all channels to build market profile in target sectors and geographies.
Financial performance
Analysys Mason's revenue increased to $61 million (2006: $60 million) despite the completion of a significant multi-year 3rd Generation wireless network rollout programme which came to an end at the start of the year. Its core telecoms consulting revenue improved by 26% to $44 million (2006: $35 million). Rapid geographic expansion has also resulted in non-UK revenue rising from 37% to 55%. Benefits from the merger synergies continue to be enjoyed as the business achieves further integration, with revenue from cross-group bidding currently accounting for 17% of total revenue.
EBITDA amounted to $6 million at a margin of 10,1% (2006: $6 million at 10,4%) and operating profit was $6 million at 9,3% of revenue (2006: $6 million at 9,7%).
People
Analysys Mason's success depends upon its people. As a result, it continues to invest in attracting and retaining the best talent in the industry. The past year saw some significant senior-level appointments, including a new MD for the Analysys Research division who will lead the ongoing development and growth of that business. This is supported by the recruitment of a new Head of US to make the most of the opportunities for the Analysys Research business in the Americas. Analysys Consulting hired a new Head of Broadband & Media along with two new principal consultants in its US office, who have a combined experience of more than 50 years in telecommunications consulting.
Mason appointed a new Head of Mason, Ireland along with making several senior hires in the NGNs area of the business, all adding experience and depth to Analysys Mason Group's ranks around the world. These senior management appointments were further bolstered by the recruitment of consultants at all levels throughout Analysys, Mason and Catalyst along with a vigorous graduate recruitment programme. Focus will remain on attracting and retaining the best people to maintain the organisation's leadership in the markets it serves. To assist with this, and all aspects of talent management, Analysys Mason hired a new Group HR Director.
Future prospects
Analysys Mason's future growth, and indeed its mission, is driven by its position as the established leader in strategic thought and advice in the telecoms industry and its unique ability to provide specialist solutions to deliver the right result for each client.
Along with exploiting growth opportunities in established markets and sectors, Analysys Mason Group will continue to make the most of group synergies and much potential remains for it to broaden and deepen both its thought leadership-based service offerings and its geographic footprint.
Marketing and recruitment will be focused on enhancing Analysys Mason's reputation in growth segments such as NGNs and solutions, and consulting to the media and networked IT sectors along with its pursuit of emerging geographical markets. Management will continue to look for ways to improve productivity and enhance operational synergies.
Simon Jones
Chief executive officer
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