Feeds

Thus cautious on outlook

Trading update

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

Thus - the firm behind Demon Internet - delivered a cautious outlook for second-half trading today. It forecasts growth over the first half in all continuing operations, but "second half Data and Telecoms growth has however been lower than expected, principally as a result of a decline in turnover from low margin, wholesale voice services and the impact of the regulatory reduction in fixed to mobile termination rates".

The Scottish telco says that both factors will affect turnover in the next financial year, "although they will have minimal impact on EBITDA and cash flow".

In its trading update today, Thus described financial performance over the last year as "consistent with the Board's expectations". Group turnover for the year to March end is expected to be around £360m compared to £332.4m for the previous year. Data and Telecoms, Managed Solution Services and Internet Services showed a "solid year on year improvement". EBITDA (earnings before interest etc.) for the full year is expected to be at least £39m.

Last November Thus blamed fierce competition for a slide in earnings as rival operators scrap hard for new business. At the time it "remained cautious on pricing and the market structure for telecommunication services in the UK" as it continued to battle with the tough trading conditions.

At 9.45am shares in Thus were up 0.75p (5.66 per cent) at 14p. ®

Related stories

Thus squeezed by tough conditions
Thus shares nosedive over gloomy forecast
Demon does entry-level DSL

Internet Security Threat Report 2014

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
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.