Feeds

Thus shares hit by profit warning

Company blames broadband revolution

  • alert
  • submit to reddit

Security for virtualized datacentres

Shares in Thus, the telco and ISP, hit the skids today after the group issued a full-year profit warning. Thus blamed the news on the British public's enthusiastic embrace of broadband, and ongoing problems in its other businesses.

The news has come as something of a surprise, following recent positive spin on the same trend. Indeed, in May this year, Thus highlighted its customers' transition to broadband as one of its key milestones, stating proudly that it generated more revenue from ADSL subscribers than it did from those still using dial-up.

The company now says that the lower margins on broadband have put its core business under pressure. It said it expects to report earnings before interest and tax of between £47-53m, down from its earlier prediction of £53-59m.

By lunchtime, shares had fallen almost 20 per cent, or 4.5 pence, as house broker Investec also lowered its predictions for the company's earnings before interest, tax, depreciation and amortisation (EBITDA) by 16 per cent to £49.3m.

In a statement issued earlier today, the company said it was reviewing its position on its non-core activities: namely, its call centre and scratch-card operations. It said it expects to complete the sale of its contact centre business by July 31st, and that there would be an announcement on the Interactive Services (scratch-cards) segment later this year, following a review of its performance.

The company is not alone in its troubles: last week Colt issued a similar warning, also pointing to increasing pressure on its margins. ®

Related stories

Thus swells - thanks to ADSL
Thus looks to profit in 2005
Thus passes cash flow positive milestone

Secure remote control for conventional and virtual desktops

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
'Serious flaws in the Vertigan report' says broadband boffin
Report 'fails reality test' , is 'simply wrong' and offers ''convenient' justification for FTTN says Rod Tucker
This flashlight app requires: Your contacts list, identity, access to your camera...
Who us, dodgy? Vast majority of mobile apps fail privacy test
Apple Watch will CONQUER smartwatch world – analysts
After Applelocalypse, other wristputers will get stuck in
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.