ORLANDO, Fla., June 12, 2008 (PRIME NEWSWIRE) -- RedChip Independent, a division of RedChip Companies Inc., has initiated coverage on Xfone, Inc. (AMEX:XFN), an international telecommunications company providing voice, video, and data communication services through its subsidiaries with operations in the United States, United Kingdom, and Israel.
Ekta Bhatia, MBS, RedChip Research Analyst, reported:
"Global penetration by Xfone, Inc. into all major continents has carved out its niche in the telecom industry. Expanding relationships and strategic partnerships are expected to promote revenue growth, along with compounding the Company's resources and consumer base. Going forward, we expect growth levels will enhance along organic and inorganic lines.
"Traditionally, XFN has pursued strategic acquisitions to drive its business growth, expand its product offerings, and to enter into new markets. These acquisitions have helped XFN broad-base its operations in its three current markets and supplement its organic growth while adding to its customer base. We expect the consolidation of NTS Communications, Inc. with XFN to steadily enhance top- and bottom-line growth due to growing synergies and FTTP network development. The acquisition also establishes a stronger presence for XFN in the West Texas market and adds approximately 47,500 residential and business customers to its base. This will help XFN accelerate its growth strategy, expand its market reach, and enhance its product and services offerings.
"The telecommunications industry is highly competitive, marked by rapid technological advancements and product innovations. In an effort to provide diversified services, consolidation between the major players is continuing, significantly contributing to the telecom sector. Subscriber count is proliferating with the emergence of bundled services, which are being offered with the implementation of IP platforms and 3G networks. Similarly, VoIP services are on the rise, diversifying services to residential and business customers and implementing IP-PBXs," she continued.
"We initiate coverage of XFN with a 'Buy' recommendation," Bhatia concluded.
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Disclosure
Neither RedChip Companies nor the analyst has received any compensation from Xfone, Inc. or any other party for the writing and preparation of this equity research report. The analyst(s) contributing to this report do not hold any shares of the subject securities. This report is based on data obtained from sources we believe to be reliable but is not guaranteed as to accuracy and does not purport to be complete. Neither the information nor any opinion expressed constitutes an offer, or an invitation to make or garner an offer, to buy or sell any securities or any options, futures, or other derivatives related to such securities.