TORONTO, Oct. 31,
2024 /CNW/ - Tucows Inc. (NASDAQ: TCX) (TSX: TC), a
global internet services leader, has implemented a capital
efficiency plan, including a significant layoff in its Ting
business, in order to cut expenses and move towards Ting becoming
self-sufficient. There were also layoffs at the Tucows head office
level, as part of a shared services reorganization.
The plan includes a reduction in headcount that impacts
approximately 42% of Ting's workforce and 17% of Tucows' total
workforce. "This decision was a difficult one and I want to
acknowledge the impact it will have on the employees who are
leaving," said Tucows President and Chief Executive Officer,
Elliot Noss. "These are hardworking
people who have made significant contributions to the Company, and
their dedication will be remembered. We do not take these measures
lightly, and this decision was made with the deepest consideration
for the future of the Ting business and its continued
sustainability."
"We undertook the capital efficiency plan after exploring all
other options to finance Ting's continued expansion," Noss
continued. "This plan will put the Ting and Tucows businesses back
to paths of growing Adjusted EBITDA. With a more efficient cost
structure and capital from our recent asset-backed securitization,
we are focused on increasing penetration within our own footprints
and within large partner markets like Memphis and Colorado Springs. Our goal is to
transition Ting to a cash-generating business that sustains its own
operations and growth."
We expect this to lead to significant Adjusted EBITDA growth for
Tucows in 2025 and for the Ting business to be in and around
Adjusted EBITDA breakeven in 2025.
The capital efficiency plan will be discussed in more detail in
the upcoming Q3 2024 Management Remarks on Thursday, November 7, 2024 at 5:05pm. Links to the third quarter remarks and
related earnings reports will be available at
www.tucows.com/investors/financials.
About Tucows
Tucows helps connect more people to the benefit of internet
access through communications service technology, domain services,
and fiber-optic internet infrastructure. Ting (https://ting.com)
delivers fixed fiber Internet access with outstanding customer
support. Wavelo (https://wavelo.com) is a telecommunications
software suite for service providers that simplifies the management
of mobile and internet network access; provisioning, billing and
subscription; developer tools; and more. Tucows Domains
(https://tucowsdomains.com) manages approximately 25 million domain
names and millions of value-added services through a global
reseller network of over 35,000 web hosts and ISPs.
Hover (https://hover.com) makes it easy for individuals and
small businesses to manage their domain names and email addresses.
More information can be found on Tucows' corporate website
(https://tucows.com).
Tucows, Ting, Wavelo, and Hover are registered trademarks of
Tucows Inc. or its subsidiaries.
This release includes forward-looking statements as that term
is defined in the U.S. Private Securities Litigation Reform Act of
1995, including statements regarding our expectations regarding our
future financial results and, including, without limitation, our
expectations regarding our ability to realize synergies from the
Enom acquisition and our expectation for growth of Ting Internet.
These statements are based on management's current expectations and
are subject to a number of uncertainties and risks that could cause
actual results to differ materially from those described in the
forward-looking statements. Information about other potential
factors that could affect Tucows' business, results of operations
and financial condition is included in the Risk Factors sections of
Tucows' filings with the Securities and Exchange Commission. All
forward-looking statements should be evaluated with the
understanding of their inherent uncertainty. All forward-looking
statements are based on information available to Tucows as of the
date they are made. Tucows assumes no obligation to update
any forward-looking statements, except as may be
required by law.
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SOURCE Tucows Inc.
