Feeds

Pure predicts bright future

Sparkling revenues prompt acquisition hunt

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

Pure Telecom is on the acquisition trail after announcing a healthy revenue forecast on Monday.

The Irish firm, which specialises in providing broadband and voice services to small business customers, announced it expects to record revenues of €8m for 2006. Pure recorded revenues of €6.4m last year; the 2006 forecast is an ambitious 25 per cent increase on that.

Sources close to Pure said the company is operating on a run rate of €800,000 per month and the revenue forecast could actually be conservative.

Pure's profits before taxes and other charges in 2005 stood at €411,000, and the company forecasts a 34 per cent increase year-on-year to bring 2006 earnings to €550,000.

Pure Telecom's current financial strength has prompted director Paul Connell to consider expanding the business. "Yes, we're looking to make acquisitions in Ireland and outside of Ireland," he told ENN.

Connell set up Pure Telecom Austria last year to gain a foothold in Central Europe. "It's a template for rolling out services to the new accession states of the EU," he said, describing the enterprise as at a "seedling" stage, with one full-time employee.

Pure Telecom is also looking at possible acquisitions in Britain, where the company already has around 100 small business customers, according to Connell.

Recent media reports had linked Pure Telecom with Smart Telecom, and Connell confirmed that Pure had a tender document "on the desk" to acquire Smart's residential voice customers but when Eircom disconnected Smart's 39,000 customers, the deal fell through.

"Residential broadband is not really our thing anyway but we would be interested in Smart's business customers, although I've no information on that at the moment," he said.

Connell, who founded the business in 2001 with business partner Alan McGonnell, said the Smart-Eircom dispute was a "Black Monday" for the Irish telecommunications sector, and prompted the company to release its financial figures to demonstrate to consumers that not all telcos were "trading recklessly".

"We don't believe in sacrificing profit margins just to acquire customers and so have never sold our services below cost price. I believe it's this kind of strategy that damages the reputation of the industry because eventually something has to give - whether that's customer service levels or the whole company. We may not be the cheapest but we are still cost-effective and can guarantee that we are committed to the business telecoms market and are here to stay," said Connell.

Copyright © 2006, ENN

Beginner's guide to SSL certificates

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
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
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
EE buys 58 Phones 4u stores for £2.5m after picking over carcass
Operator says it will safeguard 359 jobs, plans lick of paint
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
Comcast exec: No, we haven't banned Tor. I use it. You're probably using it
Keep in mind if, say, your Onion browser craps out on Xfinity
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.