Feeds

Thus shares nosedive over gloomy forecast

Tough trading conditions, predatory pricing blamed

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Shares in Thus nosedived 30 per cent in early trading this morning after warning that profits will be down on last year. The alternative telco behind the Demon internet brand blamed tough trading conditions and predatory pricing from rivals for the gloomy forecast.

Revenue growth for the first half (H1) of the year was strong with a headline growth of 12 per cent, but intense competitive pressure had squeezed margins in the current quarter, the company said.

"In addition, there has been an acceleration in the substitution of dial-up Internet for broadband DSL. As a result, first half EBITDA will now be less than that recorded for the equivalent period last year."

Thus is due to publish its interim results next month. Revenue will not be less than £360m and EBITDA (earnings before interest etc) will be at least £39m.

In July, shares in Thus took a tumble after the group issued a full-year profit warning, when it blamed the British public's enthusiastic embrace of broadband and ongoing problems in its other businesses.

In early trading this morning shares in Thus were down 31 per cent (5.25p) at 11.75p. ®

Related stories

Thus shares hit by profit warning
Thus swells - thanks to ADSL
Thus wins £3m GWR IP network gig
Thus looks to profit in 2005

Intelligent flash storage arrays

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Lawyers mobilise angry mob against Apple over alleged 2011 Macbook Pro crapness
We suffered 'random bouts of graphical distortion' - fanbois
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
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.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Simplify SSL certificate management across the enterprise
Simple steps to take control of SSL across the enterprise, and recommendations for a management platform for full visibility and single-point of control for these Certificates.