Feeds

Affinity revenues up as losses widen

Unmetered Net access fails to take-off

  • alert
  • submit to reddit

The Power of One eBook: Top reasons to choose HP BladeSystem

Affinity Internet has reported widening losses today amidst a sharp increase in turnover.

For the six months to June 30 the UK-based Internet and telecoms company posted pre-tax losses up three-fold from £3.4 million in H1 2000 to £14.9 million in H12001.

Turnover shot up 250 per cent to £15.8 million in H1 2001 from £4.5 million during the corresponding period last year.

In a statement, chairman Terry Plummer said: "Despite a challenging economic environment, the board are delighted to report demand for Affinity's services is continuing to grow at a higher than predicted rate."

Affinity had expected strong demand for unmetered packages following the launch of an unmetered (FRIACO) narrowband service. And the company invested heavily in rolling out the product. But so far, it has failed to see any sizeable take-up, and consequently, revenues for its Internet division were flat in the first half.

Affinity, a white-label ISP for customers including WHSmith Online and the Prudential, admitted that it failed to meet its Q1 forecast that 25 per cent of its customers would migrate to a FRIACO-based service but remains hopeful this will improve later this year. When it does, Affinity claims margins will improve for its Internet business.

The company has cash reserves of £8 million following a £5 million injection from Powergen earlier this month. This was a second tranche payment from the utility company in respect of Hurricaneseye, a co-owned unified billing service, which is performing above expectations. ®

Top three mobile application threats

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.