Feeds

PlusNet shares bounce on results

Future's bright, but not Orange

Boost IT visibility and business value

PlusNet shares recovered slightly today after falling sharply on results yesterday. Shares are at 110p, after falling 9.5 per cent yesterday.

Although PlusNet posted good financials for the three months ended 30 June 2006 the City is concerned about new competition in the broadband market. Turnover was up 37 per cent to £22.5m and operating profit up 41 per cent to £3.1m. Profit before tax was £3.03m for the six months ended 30 June 2006 compared to £2.28m for the six months ended 30 June 2005.

PlusNet's chairman Kevin Adams said in a statement: "Market uncertainty caused by new mass market entrants may continue to affect our growth rate in the short term, but in the longer term we are confident that our clear focus and unique technological advantage will deliver growth as the market evolves and matures."

The ISP believes many of the current so-called "free" broadband offers are unsustainable in the long term and that many punters don't want the "legacy services" being bundled with converged broadband offers. 90 per cent of PlusNet revenue comes from broadband and related services.

PlusNet claims its users "are typically drawn from a growing audience of IT professionals and technology enthusiasts" who are interested in quality service rather than just low price. Furthermore the company believes that users of mass market ISPs "will become more discerning" and look for better quality connections.

The ISP has 198,000 broadband subscribers, up 75 per cent on a year ago. PlusNet said it was disappointed by this - it said take-up had been slowed by the problematic rollout of BT's 8Mb services and slowed between the first and second quarters of 2006.

For more download the press release (pdf) here.

The Essential Guide to IT Transformation

More from The Register

next story
Scotland's BIG question: Will independence cost me my broadband?
They can take our lives, but they'll never take our SPECTRUM
Bring back error correction, say Danish 'net boffins
We don't need no steenkin' TCP/IP retransmission and the congestion it causes
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
NBN Co adds apartments to FTTP rollout
Commercial trial locations to go live in September
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
What FTC lawsuit? T-Mobile US touts 10GB, $100 family-of-4 plan
Folks 'could use that money for more important things' says CEO Legere
prev story

Whitepapers

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.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
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.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.