Feeds

Pipex counts cost of competing with the big boys

Acquisitions hit profits, sell-off moves 'on track'

5 things you didn’t know about cloud backup

Pipex told investors today its underlying profits suffered in 2006 because of borrowing to pay for rival ISPs Bulldog and Toucan, and home phone outfit Homecall.

Pre-tax profits, hit by bigger interest payments, sank to £4.8m, from £5.1m a year earlier. Margins fell away too, from 46 per cent in 2005 to 38.2 per cent last year, with Pipex blaming having to pay more line rental to BT because of the extra home phone customers it picked up in buy outs.

Pipex took on tens of millions in extra debt so it had cash to join in the feeding frenzy on ISPs last year, when many were looking to get out of the home bundle market which looks set to be dominated by just a few large firms.

Pipex said the review being carried out by bankers UBS, which was announced in March and will decide whether Pipex itself should make an exit, was "on track".

The board sniped at the press, which has reported that interests in an auction for Pipex from Sky, BT, TalkTalk, and Virgin Media all melted away during negotiations, calling it "highly speculative". Pipex said it will continue to explore its options, and expects to make an announcement once the review is completed in summer.

The acquisitions delivered a rise in sales of 121 per cent to £294m, since total subscriber numbers were boosted to over one million from under 300,000 at the beginning of the year. Broadband numbers went from 283,000 to 570,000. Total losses more than doubled, however, to £17.8m from £8.7m.

Pipex's full statement is here. ®

5 things you didn’t know about cloud backup

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
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
EE fails to apologise for HUGE T-Mobile outage that hit Brits on Friday
Customer: 'Please change your name to occasionally somewhere'
Time Warner Cable customers SQUEAL as US network goes offline
A rude awakening: North Americans greeted with outage drama
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
We need less U.S. in our WWW – Euro digital chief Steelie Neelie
EC moves to shift status quo at Internet Governance Forum
BT customers face broadband and landline price hikes
Poor punters won't be affected, telecoms giant claims
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?