During the nine months ended September 30, London, UK-based Affinity trimmed its operating loss to 8.89m pounds ($13.9m) from an operating loss of 17.3m pounds ($26.9m) in 2001, on group revenue that grew 89% to 57.2m pounds ($89.2m), although during the third quarter revenue remained flat.
The improvement in the bottom line was due to cost-cutting measures taken during the period, which has so far delivered savings of 4m pounds ($6.24m) of which 1m pounds ($1.56m) was saved in the third quarter. However, the company has seen its cash reserves ebb away, and at the end of the period, cash and cash equivalents had fallen to 82% to 1.08m pounds ($1.82m).
Also during the quarter, CEO Wayne Lochner resigned and took the position of non-execuitve director, meanwhile CEO of the UK June May was promoted to group CEO. Affinity said that the positive effects of 4m pounds ($6.24m) cost-cutting would enable the firm to achieve an EBITDA break even in the fourth quarter.
Source: Computerwire
