LodgeNet's CEO Discusses Q1 2012 Results - Earnings Call Transcript
In addition, we have several other positive development, which will bolster our results going forward. During the quarter we installed 17,000 high-definition rooms, almost 80 rooms we installed in 12 quarters, and are also a very positive top comparison to the 2900 rooms we installed just one year ago.
In addition our room retention rate improved significantly during the quarter, guest entertainment rooms we are off about 30,000, rate some 50% better than quarterly run rate during the last half of 2011.
This improvement is the direct results of several proactive measures we undertook, including a revised sales organization structure that we implemented at the beginning of this year to provide greater sales coverage, along with lower cost options and more flexible sale terms which are clearly attracted to our low revenue generating properties, but also while maintaining the economics of our model.
At the same time, we had a terrific quarter with regard to our Envision and Mobile initiatives. The press release we issued yesterday highlighted that the number of rooms contracted for Envision, our new cloud connected interactive television platform increased 75% during the quarter. We now have nearly 75,000 rooms and over 225 properties contracted with this new very powerful platform.And perhaps even more importantly, we reported that of the 44.000 Envision rooms that have been installed, 40% of those hotels are subscribing to our Advanced Apps which are generating about $4 of firm contracted revenue per room per month for us. And such that apps are sold on in essence on a software as a service basis, the proper margin on this new incremental revenue is very attractive. And there is additional high margin revenue just adds on top of the revenue list we are already getting from our high-definition platform, so these two factors are combined to make a very meaningful engine of growth for our company, which will positively impact the results over the next several years.
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