Building a Resilient Future: Utel's Strategic Transformation
This year has marked a turning point in our commercial trajectory. We have successfully secured contracts with several prestigious new customers, including Lyse, Telesur, IXT, COM4, Wireless, and customers within the lawful interception sector. These accomplishments validate both our leadership in tech and our ability to meet the evolving needs of telecommunications and IoT Connectivity providers worldwide.
This year, we have improved our distribution process by acquiring new, strategic partners, carefully selected based on location, reach, and potential impact. The effect of this model is a much larger pipeline of leads, as well as reducing the time spent from lead generation to sales completion. Our recent wins demonstrate the effectiveness of our multi-channel go-to-market strategy, as several of our new customers comes from our new partner network. As an example, the successful onboarding of Bell and Ayscom as partners earlier this year not only extends our market reach but also validates our technology across diverse use cases and geographies, demonstrating that leading organizations recognize the strategic value of our platform. This multi-channel success gives us confidence in our strategy and ability to accelerate growth sustainably.
Although the increase in numbers and customers is recent, the transformation has been enabled by the active leadership and long-term commitment of our owners at Arendals Fossekompani. Their confidence in Utel and willingness to invest in both capital and key talent have been instrumental in strengthening our foundation for sustainable growth. AFK took a substantial risk by temporarily pausing customer acquisitions, allowing the team at Utel to completely update our technology stack, making it modern and ready for future challenges.
Now, the results speak for themselves. We are on track to double our topline revenue in 2025 compared to 2024, a milestone that reflects not just commercial success but the fundamental strength of our value proposition in the market. A 100% increase in revenue is only the beginning, and we are very confident about our progress moving towards 2026.
One of our most significant achievements this year has been the deliberate transformation of our customer and product portfolio. Up until 2025, we were in a high-risk situation, heavily reliant on a narrow customer and product portfolio, with the majority of our revenue being derived from a limited segment. This situation posed a considerable risk and created an extensive dependency on a limited range.
After making strategic choices to de-risk our operations, we have achieved a more balanced composition of our revenue sources. This diversification is not merely commercial structuring but represents a fundamental risk minimization of our business model and significantly enhances our resilience against market variabilities.
This diversification and expansion of our product range and customer base are direct results of the new and modern tech stack we built between 2021 and 2024, made possible by our owners at AFK. The modernization of our products enables the Utel team to leverage our existing technology, adapting and customizing the solutions to serve new customers and market segments, such as IoT operators.
Building a resilient business requires acknowledging setbacks alongside successes. We experienced three instances of customer churn between 2024 and 2025. While these losses impacted revenue in the short term, our now more diversified portfolio has substantially mitigated their effect on overall business performance and mitigated substantial risk factors.
Challenges also provide opportunities for learning and growth. We have learned from these experiences, and we have created and implemented new processes focused on delivery efficiency and customer-centricity. These processes are enabling us not only to meet but also to exceed customer expectations, and the operational improvements position us to create and maintain long-term relationships with our rapidly growing customer base.
Utel is entering a decisive phase of growth, powered by a strong innovation pipeline and expanding market opportunities. The global telecommunications landscape is transforming rapidly, shaped by the convergence of 5G, IoT, AI, and increasing security demands. Against a backdrop of heightened geopolitical uncertainty and shifting global alliances, secure and resilient network infrastructure has never been more critical. Utel is strategically positioned to meet this demand, with a robust partner pipeline and active pursuits in key markets such as Japan, alongside deepening engagements with our already onboarded partners, and continued growth in new distribution network and commercial partners.
Our new IoT segment further accelerates growth, allowing us to capture value in high-potential markets. As we move through 2025 and into 2026, our focus is clear: drive innovation, expand globally through strategic partnerships, and build a future-ready company with sustainable competitive advantages and operational resilience.
I am particularly pleased to report that our ownership group views Utel's trajectory with increasing optimism. This confidence is grounded in our demonstrated ability to execute on strategy, diversify our portfolio, and maintain growth momentum despite market challenges.
Best regards,
Monica Vaksdal