Profits at Oyster Group soar by 20%

Dublin-based telecoms-to-timber company Oyster Group increased profits by 20 per cent last year in spite of a fall in turnover after it withdrew from the wholesale mobile handset market.  Ciarán Hancock, Business Affairs Correspondent ,reports.

Oyster, which is owned by entrepreneur Emmet Memery, posted pretax profits in 2007 of €2.4 million as turnover declined to €47 million from €60 million a year earlier. This was the result of the group's decision to withdraw from the wholesale mobile handset market last April. "We stepped away from that business because the margin just wasn't very attractive," Mr Memery said. "We're focusing now more on sales of mobile contracts."

Oyster's mobile phone operation accounted for €35 million of its sales last year. Formally known as Cellular Services, it was rebranded as Oyster in 2007. Oyster had 83,000 mobile phone customers last year, an increase of 18 per cent on 2006. It also distributed 160,000 handsets, even though it withdrew from the wholesale market.

The company has a direct salesforce of 18, operates 23 retail stores and has 48 agents. It is Vodafone's biggest independent agent with a 20 per cent share of its business with small- and medium-sized enterprises (SMEs).

Mr Memery also owns timber milling operations in Russia and Latvia; the Papillon wine distribution company and the Lemongrass restaurant franchise operation in Ireland; and vineyards in South Africa. He is also developing property in Ireland, Britain, Latvia and South Africa.

Mr Memery said he was still considering launching as a mobile virtual network operator in Ireland and was also keen for Oyster to have its own broadband product. In addition, he is developing plans for an Oyster Card and an Oyster Lifestyle concept, which would give its biggest customers access to exclusive venues and events and offer them a range of financial products.

"At the moment, we're working hard on the Oyster Lifestyle concept," Mr Memery said. "Our plan is to target SMEs and give them access to a lounge somewhere in Dublin's city centre where they could meet customers or have a meal or a drink. There would be other benefits, too."

The events would be organised by Bravo!, a public relations and events management group controlled by Mr Memery.

Oyster has two large property development projects under way in Latvia and has been granted planning permission to build 240 apartments, 30 home office units, five office blocks and a shopping centre at a site in Finglas as part of a €127 million development.