Feeds

Thus shares nosedive over gloomy forecast

Tough trading conditions, predatory pricing blamed

  • alert
  • submit to reddit

Intelligent flash storage arrays

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

Secure remote control for conventional and virtual desktops

More from The Register

next story
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
4chan outraged by Emma Watson nudie photo leak SCAM
In the immortal words of Shaggy, it wasn't me us ... amirite?
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.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
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.