Feeds

Thus cautious on outlook

Trading update

  • alert
  • submit to reddit

The essential guide to IT transformation

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

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
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?