• Service revenue increased 51% year-over-year to $5.14 million, compared with $3.40 million in 1H2025, primarily driven by higher service volumes from existing customers, with approximately 5% of revenue generated through growth from existing client programs in Canada. 

• Gross profit increased 30% to $693,322, while gross margin was 13%, compared with 16% in 1H2025. 

• The Company reported a $1.29 million net loss, primarily reflecting $1.39 million in aggregate listing-related expenditures and higher general and administrative expenses associated with the RTO and transition to a public listed company. 

• Cash and cash equivalents increased 164% to $1.09 million as of June 30, 2026, primarily supported by $1.00 million in proceeds from the private placement financing completed in connection with the RTO. 

• The Company completed its RTO on June 30, 2026 and subsequently commenced trading on the TSX Venture Exchange under the symbol “ATOI” on July 14, 2026. 

 

August 31, 2026 – TheNewswire - Vancouver, BC — Asiatel Outsourcing Inc. (“Asiatel”, or the “Company”) (TSXV: ATOI), a Philippine business process outsourcing (“BPO”) and knowledge process outsourcing (“KPO”) company today announced its financial results for the six-month period ended June 30, 2026.

 

In the first half of 2026, Asiatel completed its reverse takeover (“RTO”) transaction on June 30, 2026 and subsequently began trading on the TSX Venture Exchange (“TSXV”) under the symbol “ATOI” on July 14, 2026.

 

During the period, Asiatel continued to deliver revenue growth while completing the capital and corporate restructuring associated with its transition to a publicly listed company.

 

Financial Highlights

 

For the three months ended June 30, 2026 and 2025

	Q2 2026	Q2 2025	Change
Service Revenue	2,678,625	2,218,830	21%
Cost of Services	-2,310,586	-2,000,524	15%
Gross Profit	368,039	218,306	69%
Gross Margin	14%	10%
General & Administrative Expenses	-690,927	-120,109	475%
Listing Expense	-898,191	—	—
Net Income (Loss)	-1,223,099	57,131	-2241%

 

For the six months ended June 30, 2026 and 2025

	1H 2026	1H 2025	Change
Service Revenue	5,136,082	3,395,126	51%
Cost of Services	-4,442,760	-2,860,554	55%
Gross Profit	693,322	534,572	30%
Gross Margin	13%	16%
General & Administrative Expenses	-1,096,807	-185,363	492%
Listing Expense	-898,191	—	—
Net Income (Loss)	-1,294,044	308,254	-520%

 

	Jun 30, 2026	Dec 31, 2025	Change
Cash and Cash Equivalents	1,094,209	414,726	164%
Total Current Assets	1,433,607	633,855	126%
Working Capital	879,496	41,305	2029%
Total Assets	1,867,530	1,127,432	66%
Total Liabilities	923,742	850,777	9%
Total Equity	943,788	276,655	241%

 

Revenue Performance

Service revenue increased 51% to $5.14 million in 1H2026 from $3.40 million in 1H2025. The increase of $1.74 million was principally attributable to higher service volumes from existing customers, with approximately 5% of revenue generated through existing client programs in Canada.

 

Approximately 91.5% of the Company’s revenue during the period was derived from services provided to Asia Telecom Holdings Limited (“ATHL”), a related party. Alongside this, the Company is also pursuing customer diversification initiatives.

 

Asiatel’s revenue is generated from outsourcing technology-related services delivered primarily through its Philippine operating platform. The Company currently employs over 500 full-time employees who provide services to clients across multiple international markets.

 

Gross Profit and Operating Expenses

Gross profit increased by 30% to $693,322 in 1H2026 from $534,572 in 1H2025. Gross margin was 13%, compared with 16% in the prior-year period, as cost of services increased at a faster rate than revenue.

 

Cost of services increased 55% to $4.44 million, primarily reflecting higher direct personnel costs associated with increased services volumes and workforce expansion, with personnel costs accounting for approximately 97% of total cost of services during the period.

 

General and administrative expenses increased to $1.10 million from $185,363 in the prior year period, primarily due to listing-related expenses consisting of professional, advisory, legal, accounting, audit, and consulting fees, all accounting for $489,353.

 

Additionally, Asiatel recognized an $898,191 non-recurring, non-cash listing expenses upon completion of the RTO. Accordingly, this brings the incurred aggregate listing-related expenditures to $1.39 million during the period. With the RTO completed on June 30, 2026, the Company does not expect to incur further expenditures related to the completed RTO transaction.

 

Financial Position

As at June 30, 2026, Asiatel had $1.09 million in cash and cash equivalents, compared with $414,726 at December 31, 2025, representing an increase of 164%. The increase in cash was primarily supported by $1.00 million in proceeds from the private placement financing completed in connection with the RTO, partially offset by cash used during the period for operating and other activities.

 

Current assets increased 126% to $1.43 million, resulting in working capital of $879,496. Total shareholders’ equity increased to $943,788, compared with $276,655 at December 31, 2025, primarily reflecting completion of the RTO and related private placement financing.

 

As at June 30, 2026, the Company had no bank indebtedness. Its principal long-term obligations consisted of lease liabilities and $137,504 of loans payable to a related party.

 

Outlook

In the first half of 2026, Asiatel continued to advance several operational and strategic initiatives supporting its medium-term growth objectives. The Company strengthened its senior management structure while focusing on workforce utilization and operating efficiencies, evaluated options to expand Philippine service delivery capacity in response to customer demand, and continued broadening its service offerings through its KPO and Asiatel Digital business verticals. The Company also commenced implementation of its Canadian digital go-to-market strategy through its engagement of Ascendant Arrow and continued the commercialization of technology and AI-enabled services, including the initial rollout of its fileAI alliance in the Philippines. These initiatives remain subject to management's ongoing assessment, customer demand and normal business execution timelines.

 

“The first six months of the year marked the completion of Asiatel’s RTO and its transition to becoming a publicly listed company, alongside a 51% year-over-year growth in revenue,” said Jasjit Singh Anand (“Andy”), Chief Executive Officer of Asiatel. “Following the recent launch of our AI automation solutions and market entry services, our focus for the balance of the year is on converting these initiatives into measurable results, improving unit economics as delivery capacity scales, building a repeatable pipeline in the Canadian market, and demonstrating early proof points from our AI and KPO offerings that can support a broader, more diversified client base. Additionally, we are developing the business into three engines: BPO will be the execution engine, the KPO will be the expertise engine, and the Digital will be the transformation engine," Mr. Anand added.

 

For more information on Asiatel, please visit https://asiateloutsourcing.com/

 

Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

 

About Asiatel Outsourcing

Asiatel Outsourcing is an embedded extension office for growing companies. Based in the Philippines, Asiatel’s teams power the business functions that are critical to scaling, becoming a true Center of Excellence for its clients. Backed by nearly two decades of experience, Asiatel delivers this through three integrated engines: Asiatel BPO as the operational core, Asiatel KPO for specialized expertise, and Asiatel Digital as the AI-powered multiplier.

 

Asiatel’s full spectrum of outsourcing solutions ranges from Employer of Record (EOR), remote staffing, and managed services to Knowledge Process Outsourcing (KPO), Agentic AI, and intelligent workflow automation. Asiatel employs approximately 500 people in the Philippines and serves clients across eight countries. Asiatel trades on the TSX Venture Exchange under the symbol ATOI.

Company contact information:

Chief Executive Officer

Jasjit Singh Anand (“Andy”)

andy@asiateloutsourcing.com

+63 (2) 8637-9889

Investor Relations

Allan Christopher Santos

ir@asiateloutsourcing.com

allan.santos@asiateloutsorucing.com

+63 927 262 7876

Public Relations

Gab Abeleda

asiatel@ellerton.sg

+63 917 160 4359

Forward-looking Statements

 

The information in this news release includes certain information and statements about management’s view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Forward looking statements in this news release include, but are not limited to statements regarding strategic acquisitions, scaling beyond current footprint in the SME market, future growth, shifting towards higher-value KPO, accessing capital markets to fund growth or acquisitions and expanding into ASEAN, Latin American or European markets. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although the Company believes that the expectations reflected in forward looking statements are reasonable, it can give no assurances that the expectations of any forward looking statement will prove to be correct. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.