View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
August 12, 1997updated 03 Sep 2016 4:52pm

EASYNET STILL FINDS ITS EASY TO LOSE MONEY

By CBR Staff Writer

Easynet Group Plc, the UK Internet service provider which caught out unwary investors with its disastrous public offering last March, has spent the first half of this year chasing down new business, but growing revenue still hasn’t brought profits. Net losses for the six months to June 30 increased to 668,000 pounds from 242,000 pounds last year on revenue that rose nearly 300% to 2.5m pounds. The huge growth in revenue, which was up 62% on the preceding half year, was driven by an extra 1,500 corporate customers and a further 7,000 dial in customers since December. The new corporate strategy is to focus on value added services to the big corporates, where Easynet can squeeze out better margins and bring in some cash. The group still has 1.8m pounds in the bank to keep it afloat, and chairman David Rowe is ambitiously predicting a breakthrough into both profits and, more importantly, positive cash flow in the fourth quarter of this year. Easynet is still a very small fish in comparison with the wholesale consolidation occurring in this industry and Rowe says his company is still looking for opportunities to increase mass. But having spent 1.5m pounds in cash on the purchase of Technocom Plc in May (CI No 3,162) and with a poor performing share price, Easynet’s opportunities are looking limited. Having dropped as low as 38 pence last year on the poor interim results, the shares have rallied, but were down again on Tuesday by 4.5 pence to 79.5 pence, still below the March 1996 flotation price of 100 pence. No dividend has been proposed by the board.

Content from our partners
Green for go: Transforming trade in the UK
Manufacturers are switching to personalised customer experience amid fierce competition
How many ends in end-to-end service orchestration?

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU