Thus still 'cautious' on tough market conditions

Demon sub numbers OK though

By Tim Richardson • Get more from this author

Posted in Financial News, 23rd May 2005 09:44 GMT

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Scottish telco Thus is once again bleating about tough trading conditions as it reported increased losses for the year.

Although turnover for the 12 months to the end of March swelled 8 per cent to £360m, the company also reported that pre-tax losses had increased from £26.7m to £41.47m.

Takings from its data and telecoms business was up 16 per cent to £177.7m buoyed by the provision of carrier pre-select (CPS) voice telephony services.

Its internet business - led by its Demon service - saw turnover for the year grow 9 per cent to £93.1m. Revenue from UK broadband services made up a third of total internet turnover as the number of Demon broadband punters increased 59 per cent to 92,000.

At the same time, the number of Demon dial-up punters fell 24 per cent to 79,000 leading to a dip in revenues from narrowband services.

Despite this progress Thus continues to struggle with what it describes as "challenging market conditions".

Said chief exec William Allan: "We remain cautious on the market structure for telecommunication services in the UK, and we expect the aggressive pricing environment to continue throughout the year."

He added that execs at the Scottish telco remain "encouraged by the strong growth in core activities" and despite strong price competition, Allan remains upbeat that the company can continue to win new business.

Shares at Thus fell 5 per cent (0.73p) to 13.77p in early trading. ®