In 2019, we witnessed a true turnaround story. The improvement in profitability was unprecedented in recent history of the company and the 2019 performance outweighed 2018 on all key performance indicators. During the year, we also reinforced our product roadmap vision with a strong response from customers and fortified our values among employees across different geographies, making the Company stronger and better aligned to achieve targets set for 2020.
The revenue in the fourth quarter was EUR 14.1 million (16% higher than the same quarter last year). The growth was especially strong in the Middle East and Africa (MEA) region being 34%. The full year revenue was EUR 47.0 million (12% higher compared to last year). The growth in revenue took place in all four subsequent quarters in 2019 compared to same quarters last year showcasing renewed customer confidence in the company and its offerings.
The operating profit and net profit improved in all four quarters in 2019 compared to same quarters last year. The full year improvement in operating profit was EUR 9.1 million and in net profit EUR 8.3 million. The fourth quarter net profit was EUR 2.8 million being 155% better than the same quarter last year. Earnings per share (EPS) was 0.01 euros in the fourth quarter and 0.03 euros in the full year 2019. Strong net profit supported by capital investments done the company beginning of the year lifted Tecnotree’s shareholders equity back to positive and equity per share at the end of the period was 0.015 euros compared to -0.037 euros end of last year.
New orders recorded during the year amounted to EUR 51.4 million, providing a strong EUR 25.5 million order back to start year 2020 with. Tecnotree had big wins during 2019 and the good momentum has continued in the beginning of 2020. The increase in order intake in 2019 was EUR 14.7 million and 40% compared to previous year. It is a clear indication of regained customer confidence in the Company after a more challenging period during the past years.
Tecnotree’s financial situation stabilized more during the year through capital investment of EUR 2.9 million done to the company and sales proceeding of EUR 2.4 million from sale of its premises in Espoo. The amount of debt repayments in 2019 was EUR 3.6 million. Improved cash situation allowed Tecnotree to increase its investments to product development in a cautious but steady manner.
Other Business Updates
Tecnotree continues to grow its business across global markets by increasing the presence of our brand and taking advantage of the onset of 5G implementations and the digital transformation requirements of our customers. We hope to synergize new partnerships with other internet of things (IOT) providers, to increase our competitive edge, our reach to new markets and to strengthen our customer base globally, so that our customers may benefit from the full range of the Tecnotree Digital BSS Suite 5 products and our high quality digital Deployment, Operational and Managed Services capabilities.The Company also made substantial investment in 2019 in augmenting the sales & marketing and product development and delivery teams by increasing the manpower by almost 10%. We have already started seeing these investments translate into new orders and thereby revenue boost. We will also focus on receivable and cash management in 2020.
Padma Ravichander, Chief Executive Officer
Year 2019 "a historical year of turnaround and profitability growth"