Feeds

Thus squeezed by tough conditions

Remains chipper

  • alert
  • submit to reddit

Website security in corporate America

Thus, the Glasgow-based alternative telco, blamed fierce competition for a slide in earnings as rival operators scrap hard for new business. Confirmation that market conditions remain tough came as the company behind the Demon internet brand reported that while turnover for the six months to the end of September was up 13 per cent at £177.5m, EBITDA (earnings before interest etc) slipped to £18.1m from £20.6m last year.

And despite bragging about winning "significant" new contract wins from Chrysalis Radio, Scottish Prison Service and South London and Maudsley NHS Trust, it was unable to hide the fact that it made an operating loss of £26.4m over the period.

Of course, the company had already flagged these problems in September when it warned that tough trading conditions and predatory pricing from rivals had squeezed margins.

Turnover from its internet business swelled six per cent to £45.1m with revenues from broadband up 57 per cent (£5.1m) to £14m. This increase was reported as its customer base climbed 77 per cent to 70,000. Snag is, this increase was largely at the expense of a sharp fall in revenues from dial-up net access, down £4.3m to £10.9m, as the number of narrowband punters fell to 90,000 during the year.

Said chief executive William Allan: "Looking ahead into the second half, while we remain cautious on pricing and the market structure for telecommunication services in the UK, contract renewals and business expansion from existing customers combined with new customer accounts will deliver further growth. Against this background, it is expected that for the year ending 31 March 2005, THUS will deliver revenue of not less than £360m, continued positive cash flow and EBITDA of not less than £39m."

Thus, which used to be known as Scottish Telecom, was created ten years ago by ScottishPower. The business floated as Thus on the London Stock Exchange in 1999 with ScottishPower remaining a major shareholder. In March 2002, Thus demerged from the ScottishPower Group. ®

Related stories

Thus shares nosedive over gloomy forecast
Thus shares hit by profit warning
Demon does entry-level DSL
Iomart offers free broadband

Reducing the cost and complexity of web vulnerability management

More from The Register

next story
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
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
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.
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.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
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.